Emerging market currencies stabilize with the anticipation of the results of the trade war negotiations

Emerging market currencies started this week with a condition of prudence in the light of investors’ interest in commercial discussions between the United States and a number of major economies in Asia, and prepared for issuing a set of decisive economic data in the United States and China. The developing currency index finalized on Monday, after the decline by 0.1% earlier, thanks to the possibility that commercial negotiations would lead to reducing customs duties. The Thai bat was one of the worst currencies in light of the decline in the price of gold and the increasing expectations to lower interest rates in the country. Customs duties exceed the worst stage that increases the hope of the possibility of exceeding the worst stage of US threats, after US Treasury Secretary Scott Besent, this week, revealed the possibility of the United States and South Korea to achieve a commercial ‘comprehension agreement’. Besent also said on Sunday that negotiations with some commercial partners “are progressing very well, especially with Asian countries.” Kyung Genele’s main strategic analyst of the total economy of Asia Genera in Hong Kong indicated that “the market interacts with the expectations of negotiations, which could support the US dollar in the short term. Emerging market currencies increased by 0.9% this month, with the largest monthly increase since September after Trump’s proposals to impose comprehensive customs duties to abandon the customers of US assets and the fall in the dollar. European currencies have won the gains with the highlight of the euro, while the Mexican Bizo achieved the best performance among the currencies of Latin America after Trump suspended the imposition of mutual customs duties on Mexico. China and America’s data on this week in anticipation, also the issuance of important data on the US economy, including growth and inflation index, to determine whether Trump’s trade war began to affect the economy. China officials confirmed the promise on Monday to support the growth of the economy before the manufacturing activity data was released later this week. Brown Source Harriraman, the World Market Strategy, wrote that “despite the US allegations of progress in commercial negotiations, we still doubt the possibility of any fundamental agreement so fast. At the same time, US and Chinese data are expected to show references to the decline as a result of the trade war, which will have a negative impact on the exchange of the market.