The US dollar is acting as a haven this morning, rising 0.10 percent, and ignoring the lower growth expectations of the US economy. The International Monetary Fund (IMF) issued its World Economic Outlook on Monday, and the optimism that was in the air in 2018 has given way to a more inescapable sense of gloom. The global economy is projected by many economists to slow in 2019 to closer to 2 percent annual growth.
From now on, global growth will depend on critical decisions by different players in the global economy, including in particular U.S. President Donald Trump and Chinese President Xi Jinping.
Given that there was a U.S. holiday yesterday, market participants are keeping their eyes solely on U.S. and China talks, as they attempt to resolve U.S. complaints that China competes unfairly. China has been defiant, but its slowing growth numbers are putting pressure on Mr. Xi to compromise.