US President Donald Trump alleged that China has been cheating in bilateral trades for 25 years. The comments came hours before Trump administration approved the sale of arms to Taiwan worth US$2 billion.
Federal Reserve chairman Jerome Powell reiterated that policymakers will make appropriate actions according to economic changes. He has not comment on monetary policy but said the trade war has triggered a global slowdown. Trump urged all US companies to look for alternative in doing business besides China.
The People’s Bank of China announced the lowering of prime rate from this month onwards in order to boost the economy. The aim is to stimulate the growth of smaller enterprises with lower cost of borrowings and boost China’s economy. China announced new tariff on US$75 billion of American goods. Some will commence in September while the remaining will begin in mid-December. Soon after the news release, stocks declined and gold rose in US’ market.
Japan-South Korea tension escalated due to the trade dispute between the two countries and after South Korea said it aimed to cancel the intelligence-sharing pact with Tokyo. The pact is a sharing deal on the military and missile activity from North Korea.
Italian Prime Minister Giuseppe Conte formally tendered his resignation, triggering a possible political turmoil in the near future. The debt-to-GDP ratio for the country is at 131 per cent, the highest in the eurozone after Greece.
US dollar/Japanese yen fell on Friday after the Dow Jones market slid. We reckon a very strong resistance at 106.70 in market. Overall sentiment is prone in falling and testing the next support at 104.70 level. After that, we expect mixed trading in market.
Euro/US dollar has shown strong support at 1.1060. This week, we forecast the trend will climb and reach