SHANGHAI, Feb. 9 (SMM) – Trump will meet Shinzo Abe late this week and will reiterate his stand against strong US dollar and weak Japanese yen, sendind down US dollar further. Moreover, Trump’s trade protectionism and immigration policy raises market worries on global economy, weighing down US dollar. Base metals are expected to keep firm on Thursday.
Attention should be on a series of economic data on Thursday, including Japan’s core machinery orders both on an yearly and monthly basis in December, China’s January M1 money supply and new loans and US’s initial jobless claim this week and continuing jobless claims from week ending from January 6. Political uncertainty in Europe raises big risks on foreign exchange market and euro will keep falling.
US carried out new policy on Iran previously, but this didn’t restrain crude oil output in Iran. High crude oil inventory in US offsets positive effect from oil output reduction in OPEC members. Although falling US dollar index will support oil prices, market will not hold optimistic outlook on oil prices for a long time due to rising shale oil output in US.
