Bloomberg Daybreak: Asia Edition Cautious Start to Trading Ahead of Week's Eco Data, Earnings
12 snips
Apr 28, 2025 
Peter McGuire, CEO at Trading.com Australia, shares insights on the cautious start of Asian markets amidst ongoing US trade negotiations and anticipated stimulus from China. He discusses the shifting landscape of currency markets and the implications for traders. Lawrence Werther, Chief U.S. Economist at Daiwa Capital Markets, highlights looming economic uncertainty and its effects on consumer sentiment, stressing the importance of upcoming data, like the US jobs report, in guiding market trends amidst tariff tensions.
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April's USD Sell-Off Shock
- The USD experienced a rapid and significant sell-off in April, surprising many traders with its velocity.
- This volatility offered trading opportunities, especially with the euro, yen, and Australian dollar.
Fed Rate Cut Timing Uncertain
- The Fed is unlikely to cut rates in May but may consider a 25 basis point cut in June or July.
- Key economic data like disappointing jobs or soft inflation readings will influence the timing of Fed easing.
China's Trade Deal Pressure
- China is in a tough spot and understands the pressures from tariffs and the property sector.
- A trade deal soon would support China, but prolonged negotiations could incite internal friction.