The European Union (EU) expects a bulk of the United States (US) import tariffs to remain in place after little progress was made in the latest talks, Bloomberg reported on Tuesday.
The US Dollar (USD) gains temporary ground after stabilizing near its recent lows, with the US Dollar Index (DXY) rebounding from its three-year low of 99.00 to 100.00 during North American trading hours on Tuesday.
The USD/CAD pair jumped to near 1.3900 during North American trading hours on Tuesday as Statistics Canada reported that inflationary pressures cooled down in March.
Pound Sterling (GBP) is performing well on the day with a 0.4% gain vs. the US Dollar (USD) and outperformance against most of the G10 currencies as it pushed to fresh highs at levels last seen in October, Scotiabank's Chief FX Strategist Shaun Osborne notes.
OPEC revised its forecast for global oil demand slightly downwards in its monthly report published yesterday due to the expected impact of US tariffs. It now expects an increase of 1.3 million barrels per day for both this year and next.
China's crude oil imports rose to 12.1 million barrels per day in March, according to data from the customs authority, Commerzbank's commodity analyst Carsten Fritsch notes.
In the wake of the sharp fall in oil prices, the time spreads, i.e. the price differentials along the forward curves, also narrowed significantly last week, Commerzbank's commodity analyst Carsten Fritsch notes.
The exemption of some electronics products from the reciprocal US tariffs has provided some relief on the stock market, although expectations were quickly dampened again by the threat that the products would soon be subject to sectoral tariffs, Commerzbank's commodity analyst Thu Lan Nguyen notes.
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US Dollar (USD) could edge higher vs Chinese Yuan (CNH), but any advance is unlikely to break above 7.3350. In the longer run, sharp but short-lived price action has resulted in a mixed outlook; USD is likely to trade between 7.2430 and 7.3700 for now.
Last week after business hours on Friday, Standard & Poor’s issued a downgrade of outlook on Hungary’s sovereign debt from stable to negative. S&P already rates the issuer at 'BBB-/A-3', the lowest within investment grade, which highlights the significance of a negative outlook from here.
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