The EM Asian currencies is expected to prop up on easing trade tensions between the U.S. and China over the weeks ahead, including the yuan on the back of the Fed’s softer tone and China’s pro-growth policies, till US stock recovery leads to a marked rise in market-implied odds of Fed rate hikes for 2019, according to the latest research report from Scotiabank.
A three-day trade negotiations between midlevel American and Chinese officials concluded in Beijing on Wednesday afternoon, with progress towards an agreement but little sense of when to reach a deal.
In addition, many Fed officials expressed the view that, especially in an environment of muted inflation pressures, the Committee could afford to be patient about further policy firming. China’s looming PPI deflation poses a downside risk to US CPI inflation, providing scope for the Fed to ease rate hikes this year, the report added.
Bloomberg reported on Wednesday that China’s finance ministry is set to propose an annual fiscal deficit target of 2.8 percent of GDP for 2019, compared to 2.6 percent of GDP for 2018.


Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran
Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances
Gold and Silver Prices Climb in Asian Trade as Markets Eye Key U.S. Economic Data
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
Best Gold Stocks to Buy Now: AABB, GOLD, GDX
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Australian Pension Funds Boost Currency Hedging as Aussie Dollar Strengthens
Asian Markets Surge as Japan Election, Fed Rate Cut Bets, and Tech Rally Lift Global Sentiment
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 



