China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
BOJ Rate Hike Expected to Boost Yen, Impact USD/JPY and Nikkei 
South Korea Warns Won Is Undervalued, Boosts FX Coordination With Japan 
Asian Currencies Slip as Dollar Holds Firm, Yen Near Four-Decade Low Ahead of Fed, Jobs Data 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
Asian Currencies Stay Under Pressure as Dollar Holds Near 13-Month High Ahead of U.S. Jobs Report 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
India Manufacturing PMI Slows in June as Demand Weakens Despite Lower Cost Pressures 
US Stock Futures Hold Steady Ahead of June Jobs Report as Fed Rate Outlook Remains in Focus 
As we head into 2019, the United States and its economy facing several key risks after a turbulent stock market in 2018. Let’s take a look at those key factors,
- One of the most important risks facing the USA is an economic slowdown. There have been signs since the end of the third quarter that after a stellar performance in 2017, and 2018, the U.S. may finally be losing some steam. So, the focus would be on whether the economy continues to grow stronger or slowdown accelerates. The outcome of this uncertainty would certainly influence USD the most, as the market is no longer pricing a hike single rate hike by the U.S. Federal Reserve in 2019. The economy would also impact stock prices via earnings.
- Another set of key risks specific to the United States is the domestic political turmoil. With the House of Representatives under control, the Democrats are likely to increase political attacks on president Trump as the Presidential campaign would gradually kick in. The U.S. economy is likely to face several prolonged shutdowns over the differences between the Democrats and President Trump. The current ongoing partial shutdown speaks for it, which is likely to last longer than previous shutdowns.
- The United States is also facing several geopolitical risks, and one needs to keep an eye on them; relations with Middle East after troops withdrawal from Syria, and Khashoggi murder allegedly involving Saudi crown prince Muhammad bin Salman; relationship with European Union over NATO payments and trade; relationship with China as the trade war intensifies.
The outcome of the above uncertainties would not only continue to influence the market but their outcome would be major movers.
