From Marc to Market:
The US has rejected Iran’s latest offer and appears to be moving more force into the region. Oil prices have jumped, which is also serving to push up yields. The dollar is firmer against most of the G10 currencies. New verbal intervention by Japanese officials, clinging on to the cooperation of the US, to warn against yen weakness.
Yet, with rising US yields, it will be difficult to suppress the greenback. Perhaps, one of the most interesting developments today has been the PBOC’s sharply lower dollar fix. Last week, the PBOC had cautioned against one-way moves in the yuan. The dollar’s fix was lowered by the most since April. Ironically, it does not appear that the currency was discussed by Trump and Xi, but the yen was reportedly discussed during Trump-Takaichi talks. Trump and Xi will meet two more times this year (November APEC ins Shenzhen and December G20 at Trump’s golf club in Florida). The US and China agreed to reduce tariffs on $60 bln of goods imported from each other....
....MUCH MORE
