The indicator of the Dallas Fed manufacturing activity delivered worse news yesterday. At about -36, almost 19 points worse than expected. New orders fall significantly, as prices pay significantly. No wonder the US dollar was under pressure yesterday. Accordingly, Bloomberg recently published the results of the April survey by economists, and the findings were likely to have higher concerns over US revolt, commerzbank's FX analyst notes Michael Pfister.
Shame in Asian trade may soak in US relationships
“Imports from Japan, South Korea, Taiwan, and Vietnam have been involved with imports from China at the beginning of 2023. Will the governments of these four countries allow this time.”
“Donald Trump never tires to emphasize that China should bring costs to tariffs and repeatedly suggests that apparent income can be used to reduce US income taxes. Subcomponents of emotional indicators suggest that it will not be simple. Instead, US buyers are likely to have a large portion of the price increase.”
“The Fed is likely to have a harder time than in recent years. Other central banks can focus more on the real economy in lighting the positive shock of supply in their countries, while the Fed should master the act of balancing between inflation and the real economy. It will surely help if the upcoming hard data (jolts labor market data now, Payroll on Friday) remained strong for a while.
