• The dollar rose against most currencies on Wednesday, as optimism over a U.S.-Mexico trade deal gave way to concern that a conflict over trade between Washington and Beijing was not about to end soon.
The deadline for public comment on U.S. President Donald Trump’s tariffs on another $200 billion of Chinese goods is on Sept. 5, with the new measures possibly taking effect next month.
The greenback was supported overall as well by data showing U.S. economic growth was a bit stronger than initially thought in the second quarter, notching its best performance in nearly four years.
• Gross domestic product grew at a 4.2 percent annualized rate, the Commerce Department data showed in its second estimate of GDP growth for the second quarter. That was slightly up from the 4.1 percent pace of expansion reported in July.
The data cemented expectations for a U.S. rate hike next month, with a 96 percent probability, according to fed funds futures.
• “There is still a long way to go with Trump recently again threatening tariffs on cars from Europe and the U.S. preparing another $200 billion of tariffs against China,” said Craig Erlam, senior market analyst, at OANDA in London.
• The U.S. dollar index, which tracks the greenback against a basket of currencies, was largely flat at 94.536 but on Wednesday the dollar rose 0.5 percent against the yen to 111.67 yen JPY=, after earlier hitting a four-week high.
That said, UBS’ global wealth management division sees a long-term downtrend for the dollar versus the yen.
• “In the short term, dollar/yen could remain supported at the 110 level or above against a backdrop of broad dollar strength versus major currencies like the euro and the Chinese yuan,” UBS said in its latest research note.
The euro EUR=, meanwhile, was flat at $1.1700 after gaining the last three sessions, as worries mounted that Italy's public deficit could exceed the European Union's ceiling of 3 percent of GDP.
• U.S. economic growth was a bit stronger than initially thought in the second quarter, notching its best performance in nearly four years, as businesses boosted spending on software and imports declined.
• U.S. President Donald Trump said on Wednesday that American and Canadian officials negotiating a revamped North American Free Trade Agreement (NAFTA) were probably set to meet a Friday deadline for an accord.
• Canadian Foreign Minister Chrystia Freeland said on Wednesday that NAFTA trade negotiations with the United States were at a “very intense moment” and Canada was looking for compromises that were “win-win” for all sides.
• White House counsel Don McGahn, whose relationship with President Donald Trump has been strained by the investigation into Russian interference in the 2016presidential election, is set to leave the job in coming weeks.
McGahn will be the latest senior adviser to leave Trump’s side, underscoring the White House’s persistent turmoil. But it also may open the way for a replacement who Trump would see as more willing to do battle against the Russia investigation team led by Special Counsel Robert Mueller.
• U.S. President Donald Trump on Wednesday renewed his attacks on technology companies and platforms including Twitter Inc, Facebook Inc and Alphabet Inc’s Google, saying they were “trying to silence” people.
Speaking to reporters at the White House, Trump suggested, without evidence, that the companies’ activities may be illegal.
• British car production fell 11 percent year-on-year in July, hit by model changes, seasonal adjustments and preparations for tougher new emissions standards, an industry body said on Thursday.
• Japanese retail sales rose 1.5 percent in July from a year earlier, more than a median market forecast for a 1.2 percent increase, data from the Ministry of Economy, Trade and Industry showed on Thursday.
• Oil prices rose more than 1 percent on Wednesday, with Brent at its highest in seven weeks and U.S. crude touching a three-week peak, supported by a drawdown in U.S. crude and gasoline stocks and reduced Iranian crude shipments as U.S. sanctions deter buyers.
Brent crude LCOc1 jumped $1.19, or 1.6 percent, to settle at $77.14, after touching $77.41, its highest since July 11.
U.S. oil CLc1 settled 98 cents, or 1.4 percent higher at $69.51 a barrel, after touching $69.75, its highest since Aug. 7.
• U.S. crude inventories USOILC=ECI fell 2.6 million barrels last week, the Energy Information Administration (EIA) said, exceeding the 686,000-barrel draw forecast by analysts polled by Reuters.
Reference: Reuters, CNBC
Thai
Eng