USD weakness in focus this week – DBS
|The USD’s weakness will likely be a key topic at the G20 Finance Ministers and Central Bank Governor Meeting on April 23-24 in Washington D.C., which will be part of the Spring Meetings of the IMF and the World Bank. The Trump administration will hold high-level talks with Japan and South Korea on the sidelines, likely including discussions on the weakness of the JPY and KRW. Both countries will likely push back against perceived currency manipulation; Japan Prime Minister Shigeru Ishiba was more vocal in emphasizing fairness in currency discussions.
Strong EUR pressures ECB as DXY wobbles before G20
"Japan and South Korea are treading a careful diplomatic line, offering incremental concessions to reduce or remove US tariffs on their imports without capitulating to all US demands and avoiding direct alignment with US efforts to economically isolate China. Japan and South Korea are increasingly seen as model cases for nations navigating the geopolitical and economic tensions between the US and China. Their ability to maintain security alliances with Washington while sustaining economic ties with China offers a playbook for other countries. "
"Although the IMF is not anticipating a global recession, it will downgrade its global growth forecasts and warn that US-led prolonged trade tensions and policy uncertainties could lead to financial market stress, undermine investor confidence, and pose challenges to financial stability. Despite the darkest global economic backdrop since the global financial crisis, countries are divided at this week’s meetings."
"The DXY Index’s fate hinges on its most significant component – the EUR. Having appreciated 10.5% ytd to 1.1440 this morning, EUR/USD faces major resistances near 1.15. The European Central Bank acknowledged the risks a strong EUR poses to inflation and growth. The Eurozone economy faces significant risks from a potential trade war with the US that threatens to overshadow the infrastructure and defence spending boost from the 'Readiness 2030' plan."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.