Cambodia plans to cut shipping through Vietnamese ports by 70% due to a .7 billion China-funded upgrade of a canal connecting the Mekong River basin to the Cambodian coast.
Warren Buffett predicts that companies like his may have to pay higher taxes in the future, and he is fine with the idea.
The USD weakened on Friday as the U.S. Bureau of Labor Statistics reported weak labor demand and slowing wage growth in April.
The Japanese Yen is having one of its best weeks in history against the US Dollar, with the USDJPY pair dropping from roughly 160.00 to 153.00 due to interventions. The US Dollar Index is holding around 105.00, and there is speculation on how long the effects of the interventions will last. Japanese companies are facing issues due to the weak Yen, and tourism is boosting local inflation. The US Jobs Report data for April is expected to influence the market on Friday. The rate differential between the US and Japan is not likely to sustain the JPY appreciation.
The EURUSD pair is struggling to hold above the round-level resistance of 1.0700 in European trading as investors await key economic indicators in the Eurozone, including preliminary Q1 GDP and CPI data. ECB policymakers have differing opinions on interest rate cuts, with some expecting cuts to start in June and potentially continue at a pragmatic pace, while others are concerned about higher service inflation and are not convinced that inflation will return to target in a timely manner. In Monday’s session, investors focused on German preliminary inflation data for April.
The GBPUSD pair is holding positive ground near 1.2520 in early trading in Asia, supported by a softer US Dollar. The US Federal Reserve is expected to leave interest rates unchanged, with speculation that the first cut might not come until September. The Bank of England may start lowering borrowing costs in its June meeting, as Governor Andrew Bailey mentioned the possibility of two or three rate cuts this year.
An imminent update on King Charles’ health is expected soon, with Buckingham Palace preparing for all eventualities, including funeral arrangements. The update could confirm the King’s recovery or detail plans for his return to official duties this summer. The King’s health is crucial for fulfilling his scheduled commitments during the packed royal calendar for the summer.
The benchmark US crude oil Western Texas Intermediate (WTI) is trading higher around .60 on Friday due to potential geopolitical risk from a looming Israeli invasion of the southern Gaza city of Rafah.
Fact: There is speculation that the Attorney-General George Savvides will submit a request to the supreme court to have Auditor-General Odysseas Michaelides removed from his post for inappropriate behavior.
The EURGBP cross traded lower around 0.8620 on Tuesday following mixed PMI figures from the UK and Eurozone.