U.S. Dollar Mostly Fell Against G-10 Currencies

On Friday (October 16), most of the US dollar fell against G-10 currencies. Previously released data showed that US retail sales grew faster than expected, and consumer confidence rose slightly in early October. The pound is stable as traders still have hope for the prospect of a trade agreement between the UK and the EU, and the two sides will continue negotiations next week. SEK and CAD led G-10 currencies.

Asian Stock Market Affected After US Treasury Announced China as a Currency Manipulator

Shortly after the Chinese yuan’s exchange rate against the US dollar fell “breaking seven,” US Treasury Secretary Steven Mnuchin issued a statement saying that the US government determined that China is manipulating the RMB exchange rate. This is the first time in 25 years that the United States has listed China as a currency manipulator.

Is the Economy Slowing? A Few Indicators Are Saying Yes.

  1. Interest Rates: The 10-year Treasury is hitting around 2.08%, down from 3.25% just three months ago.
  2. Oil is down around $53 per barrel. Down from about $65 in April.
  3. Industrial Production has hit multi-year lows.
  4. Gold and the dollar are moving up.

These four indicators have many forecasting both a tougher time ahead and a rotation into safe havens.  The central focus of concern is the trade wars with China and the new tariffs with Mexico.