• The sell-off of the dollar continued through Tuesday, following U.S. President Donald Trump’s criticism of the chairman of the Federal Reserve for raising interest rates in an interview with Reuters on Monday. And markets awaited U.S.-China trade talks and Federal Reserve minutes for directional cues
• Trump’s comments come as the market prepares for the release of Federal Reserve policy meeting minutes on Wednesday and the annual Jackson Hole symposium for insights into the direction of U.S. monetary policy, which will feature a speech by Powell on Friday.
• The dollar index against a basket of six major currencies .DXY was a shade lower at 95.211 after losing 0.7 percent the previous day. It fell to 95.070 on Tuesday, its lowest since Aug. 9.
• “Although it’s premature to say that the Fed is going to be listening to (Trump’s interest-rate comments), it is having the effect of profit-taking on the dollar by dollar bulls,” said Samarjit Shankar, director of global strategy at BNY Mellon in New York.
• “It would appear that Mr. Trump would like to keep the U.S. dollar a little on the weak side in order to remain competitive,” said CMC Markets chief markets analyst David Madden.
• Against the U.S. currency, the euro strengthened 1.05 percent to a daily high of $1.16.
The euro had stooped to a 13-1/2 month low of $1.1301 a week ago, hit by concerns that financial turmoil in Turkey could negatively affect European banks.
• President Donald Trump said Tuesday night that the U.S. would slap a 25 percent tariff on cars coming from the European Union.
The president's statement came hours after The Wall Street Journal reported that Commerce Secretary Wilbur Ross said he had postponed an August timeline to publish a report on auto tariffs.
• Former Trump campaign chairman Paul Manafort was convicted on Tuesday of eight counts of financial wrongdoing, giving Special Counsel Robert Mueller a victory in the first trial arising from his investigation of Russia’s role in the 2016 U.S. election.
After almost four days of deliberations, a 12-member jury found Manafort guilty on two counts of bank fraud, five counts of tax fraud and one charge of failing to disclose foreign bank accounts.
The jury in U.S. federal court in Alexandria, Virginia, said it could not reach a verdict on 10 of the 18 counts with which Manafort was charged. Judge T.S. Ellis declared a mistrial on those counts.
• U.S. President Donald Trump’s former personal lawyer, Michael Cohen, pleaded guilty in New York on Tuesday to campaign finance violations and other charges, saying he made payments to influence the 2016 election at the direction of a candidate for federal office.
• The euro zone economy will muddle through this year and next with steady but modest growth in a slowdown from 2017, according to economists in a Reuters poll, which shows a majority expecting a brewing U.S.-led trade war to hold back growth.
• Iran said on Tuesday it would boost its military might and also showcased a new fighter jet amid increased tensions with the United States and with regional rivals over conflicts in the Middle East.
• Oil rose to its highest level in a week on Tuesday, buoyed by the prospect of U.S. sanctions on Iran, though the trade dispute between Washington and Beijing kept traders and analysts cautious.
Oil futures extended gains in post-settlement trade after data from industry group the American Petroleum Institute showed that U.S. crude stockpiles fell 5.2 million barrels last week, more than three times analysts’ forecasts, as imports fell and refinery runs rose. Official data is due on Wednesday at 10:30 a.m. EDT (1430 GMT)
- Brent crude LCOc1 futures for October delivery rose 42 cents to settle at $72.63 a barrel. The global benchmark earlier hit $72.95 a barrel, the highest level since Aug. 14.
- U.S. West Texas Intermediate crude futures for October delivery CLc2, the most active contract, rose 42 cents to settle at $65.84 a barrel. The September contract CLc1 expired on Tuesday and settled 92 cents higher to $67.35 a barrel.
September WTI’s premium to the October contract CLU8-V8 widened to as much as $1.69 a barrel on Tuesday, after narrowing since the beginning of August. It last marked $1.50 a barrel.
Reference: Reuters, CNBC
Thai
Eng