Trump, Xi Focus on Trade and AI at White House Summit 
Gold Drops Over 1% as Dollar, Treasury Yields Surge on Fed Rate Hike Bets 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
European Stocks Slip as Iran Tensions Offset Strong Eurozone Data 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Add as a preferred source on Google
The USD/HKD currency pair is expected to trade lower towards 7.82 going forward as the trade talks between the United States and China is entering into a critical point at the 10th round of negotiations, scheduled to kick-start in Beijing on next Tuesday, according to the latest research report from Scotiabank.
HKD liquidity conditions have been tightening as indicated by narrowing yield advantage of the USD and rising EF bill yields. Meanwhile, it is reckoned that the HKD funding costs will be increasingly susceptible to market turmoil given shank HKMA aggregate balance.
In addition, mainland Chinese investors are likely to turn net buyers of Hong Kong shares as the Fed is expected to remain in a wait-and-see mode in the months ahead. Hong Kong’s initial public offering (IPO) market has been delivering the best returns in years, the report added.
According to SCMP, eleven companies that sold IPOs worth of at least USD 100mn advanced by an average of 11 percent one month after first-day trading, the biggest gains for any first quarter in four years. It will improve market sentiment if the US and China reach a trade deal in late May or early June.
