Morning of May 9: Central exchange rate increases again

The US dollar is on track to end the week higher against most major currencies in the currency basket, buoyed by the positive impact of the US-UK trade deal and rising hopes that Washington could make progress in its negotiations with Beijing. Meanwhile, expectations of an early interest rate cut by the US Federal Reserve have diminished following cautious comments from Fed Chairman Jerome Powell.

Global financial markets are now focused on a meeting between US and Chinese delegations scheduled for Saturday in Switzerland - an event seen as a key test of the prospects for a trade truce between the world's two largest economies .

The euro fell 0.13 percent to $1.1213 from early trading. It has fallen 0.6 percent so far this week.

The Japanese yen has weakened about 0.7% since the start of the week and hit a one-month low of 146.18 yen per dollar, before recovering slightly to 145.77 yen per dollar, up 0.1% from early trading.

The pound, which jumped in the previous session on news of a US-UK trade deal, quickly corrected as the actual terms of the deal were seen as quite limited.

The British pound is currently trading at $1.3226, down 0.15%.

The deal only modestly expands agricultural market access for both sides and partially eliminates US tariffs on British cars, but keeps the base tariff at 10%.

“The market buying of USD may reflect increased optimism that trade agreements can be reached, even under the current tense conditions,” said Steve Englander, global head of G10 currency research at Standard Chartered.

This expert said that President Donald Trump's signal of reconciliation with China could contribute to increasing confidence that the negative impact from the trade war could be less than previously feared.

“The G10 market would be more reassured if bilateral tariffs between the US and China were abolished, even if the tariffs are still significantly higher than the January 19 mark,” said Steve Englander.

At the same time as announcing the trade deal with the UK, President Donald Trump said he expected “substantive” talks with China to take place this weekend and that the 145% tariff on Chinese goods could be reduced.

The Australian dollar fell 0.7% from the beginning of the week to $0.6387, down 0.2% from the start of the session.

Similarly, the New Zealand dollar fell 0.3 to $0.5886.

On monetary policy, the week was in line with market expectations as the Bank of England (BoE) cut interest rates, while central banks in Sweden, Norway and the US kept their benchmark interest rates unchanged. However, cautious comments from Fed Chairman Jerome Powell dampened expectations of an early move. Market bets on a rate cut in June are now around 17%, down sharply from nearly 55% last week.

In contrast to the dollar’s ​​rise across the G10, the greenback has weakened against several Asian currencies. The Taiwan dollar continues to perform strongly, currently hovering around $30 per dollar, up 6% from its late April close. The Singapore dollar is also near a decade high, while the Hong Kong dollar has retreated from the strongest part of its trading range following heavy intervention by the Hong Kong Monetary Authority (HKMA).

Source: https://thoibaonganhang.vn/sang-95-ty-gia-trung-tam-tang-tro-lai-163897.html