{"id":35810,"date":"2022-08-09T09:21:57","date_gmt":"2022-08-09T06:21:57","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=35810"},"modified":"2025-12-11T14:27:15","modified_gmt":"2025-12-11T12:27:15","slug":"taiwan-worries-intensify","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/th\/taiwan-worries-intensify\/","title":{"rendered":"Taiwan worries intensify"},"content":{"rendered":"

The US dollar retreated yesterday but stayed relatively elevated however, in anticipation of the CPI rates due out on Wednesday. Since there are no major financial news releases today, the greenback is expected to remain calm, ahead of tomorrow\u2019s inflation rates results, which according to estimates, the pace of price increases started to peak.  We highlight though on the other hand the possibility of fundamentals leading the market sentiment in today\u2019s European and American sessions given the prementioned absence of high impact financial releases. The US stock markets edged higher yesterday, as investors reassessed the outlook of monetary policy and today we would like to note besides the earnings releases due out, IBM\u2019s dividend payout. WTI\u2019s rose yesterday, moving towards the $90 barrel level, on news regarding the revival of the 2015 Iran nuclear accord and the European Union is awaiting approval from Washington and Tehran within a couple weeks. Should the deal be approved, then we could potentially set the stage for a boost in Iran\u2019s oil exports by at least 1million barrels per day, however the approval seems unlikely. Furthermore, oil traders look forward for the US weekly API Crude oil stock figure later today providing a snapshot of the demand side of oil. Gold prices were on the rise yesterday, mainly due to the dollar\u2019s underperformance and their negative correlation. Tomorrow\u2019s CPI reports are of particular interest for gold traders as the precious metal is also used as an inflation hedging instrument. In today\u2019s Asian session, we note the results of Australia\u2019s NAB Business Confidence indicator which pointed to a particular notable strength in business sentiment as optimism rose and at the same time showed an improvement of the current conditions in the Australian economy in the month of July. On the other hand, we cannot contain our fundamental worries for the possibility of China proceeding with military action on the island of Taiwan. It\u2019s characteristic that Taiwan\u2019s foreign minister Wu warned earlier today in a press conference that \u201cChina has used the drills … to prepare for the invasion of Taiwan\u201d according to Reuters and urged \u201cinternational support to safeguard peace and stability across the Taiwan Strait\u201d. It should be noted that Taiwan straits are of the busiest shipping routes worldwide and tensions could halt trading activities. We highlight the possible adverse risks for the Chinese economy of the matter, but also the closely linked Australian economy, as well as the outlook for global economy as a whole, given its severity.<\/p>\n\n\n\n

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