FX Daily: Rare Earth Exports and Trade Tensions
China's rare earth export controls have become a key factor in determining risk appetite in the FX markets over the next four weeks.
The decision to impose export controls has sparked concern in the US and among G7 nations, making it a crucial topic for financial markets.
The ability or failure to negotiate those controls away will be one of the hottest topics for financial markets over the next four weeks.
The dollar has weakened slightly, with short-dated US rates at their lowest for the year, following the release of the Fed's Beige Book, which suggests a rate cut at the end of the month.
Betting markets expect the US government shutdown to continue into November, with US-China relations being the hottest topic ahead of key dates.
Author's summary: Rare earth exports spark trade tensions.
- Key dates ahead for US-China relations
- Fed's Beige Book suggests rate cut at the end of the month
- US government shutdown expected to continue into November