· The ECB’s chief economist, Peter Praet, a close ally of bank President Mario Draghi, said on Wednesday the central bank at its policy meeting next week would debate whether to end bond purchases later this year.
Other ECB officials echoed Praet’s sentiment.
Jens Weidmann, the head of Germany’s central bank, also said on Wednesday expectations the ECB would taper its bond-buying programme by the end of this year were plausible, while Weidmann’s Dutch counterpart, Klaas Knot, said there was no reason to continue a quantitative easing programme.
The comments drove the euro on Thursday to $1.1840, the highest since May 17. It was last up 0.3 percent at $1.1812.
· Some analysts have taken the comments from ECB officials this week as suggesting a decision on the stimulus is coming at the June 14 meeting.
· The euro’s gains have pushed the dollar index, a measure heavily weighted toward Europe’s single currency, to a three-week low as well. The dollar index was last down 0.3 percent at 93.369.
Many, however, remain cautious ahead of a summit this weekend of the Group of Seven leaders, where U.S. President Donald Trump looks set to clash with his counterparts over trade.
· “The trade stance of the U.S. administration worries economists because it could hurt business confidence that drives waves of investment and spending,” said Juan Perez, senior currency trader at Tempus Consulting in Washington.
· Leaders of the Group of Seven rich nations headed for a summit in Canada on Thursday more divided than at any time in the group’s 42-year history, as U.S. President Donald Trump’s “America First” policies risk causing a global trade war and deep diplomatic schisms.
· U.S. President Donald Trump accused Canadian Prime Minister Justin Trudeau on Thursday of “being so indignant,” as the two leaders prepared for a Group of Seven summit in Quebec on Friday that is likely to center on trade disagreements.
“Prime Minister Trudeau is being so indignant, bringing up the relationship that the U.S. and Canada had over the many years and all sorts of other things ... but he doesn’t bring up the fact that they charge us up to 300% on dairy — hurting our Farmers, killing our Agriculture!” Trump said on Twitter.
· President Donald Trump said on Thursday, one day before he attends a summit of the Group of Seven rich nations in Quebec, that France and Canada charge the United States “massive tariffs” and have non-monetary barriers to trade.
· British Prime Minister Theresa May will appeal for freer and fairer trade and launch a defense of the rules-based international system at this week’s meeting of G7leaders set to be dominated by the bitter row over U.S. metals tariffs.
· U.S. President Donald Trump said on Thursday after White House talks with Japanese Prime Minister Shinzo Abe that the two leaders were working together to improve trading relations and that Abe promised new Japanese investment in the United States.
At a joint news conference, Trump said Abe told him Japan was buying “billions and billions of dollars of additional products of all kinds - military jets, airliners from Boeing, lots of farm products.”
“We’re working hard to reduce our trade imbalance which is very substantial, remove barriers to U.S. exports and to achieve a fair and mutually beneficial economic partnership,” Trump said.
· A U.S. spirits trade body said on Thursday that 46 percent of global spirits exports from the United States could be at risk of facing retaliatory tariffs, following President Donald Trump’s move to impose tariffs on steel and aluminum imports.
An estimated $759 million worth of spirits exports are the target of tariffs from the country’s trading partners, which, if imposed, would severely harm producers, farmers and industries associated with the spirits business, the U.S. Distilled Spirits Council said in a letter to Commerce Secretary Wilbur Ross.
· Republican and Democratic U.S. senators introduced legislation on Thursday that would roll back an agreement President Donald Trump’s administration announced to ease sanctions on Chinese telecommunications company ZTE Corp.
· Britain expects to have a permanent solution on post-Brexit customs arrangements in place by the end of 2021 at the latest, and it does not want to use the backstop arrangement it has proposed to Brussels in case of delays, Prime Minister Theresa May said on Thursday.
· The Federal Reserve announced on Thursday it would release the results of its 2018 stress tests for large banks on June 21 and June 28.
· Brent crude futures LCOc1 settled up $1.96 a barrel, or 2.6 percent at $77.32. U.S. West Texas Intermediate (WTI) crude CLc1 rose $1.22, or 1.88 percent to $65.95 a barrel.
Global benchmark Brent crude surged nearly $2 a barrel on Thursday, lifted by concern about a steep drop in exports from Venezuela and worries OPEC may not raise production at its meeting this month.
Reference: Reuters
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