Phase 1 trade deal to be signed

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China and the United States are in touch over the signing of their Phase 1 trade deal which was announced last week after more than two years of on-and-off trade talks.

The announcement last week of the so-called Phase One U.S.-China trade deal lifted global economic prospects. Although neither side has released many specific details of the agreement both the Chinese and U.S. trade teams are in close communication.

The Phase 1 trade deal will see lower U.S. tariffs on Chinese goods and higher Chinese purchases of U.S. farm, energy and manufactured goods. U.S. officials say China agreed to increase purchases of U.S. products and services by at least $200 billion over the next two years.

On Wednesday, Trump became the third U.S. president to be impeached, but the Republican-controlled Senate is widely expected not to convict him. No U.S. president has been removed from office in the country’s 243-year history.

The news did not affect risk appetite as the Republican-controlled Senate is widely expected to acquit Trump, leaving him in office. Investors looked past the impeachment of President Donald Trump, who is unlikely to be removed from office.

Forex – Phase 1 trade deal to be signed

Trading volumes are expected to taper off ahead of the Christmas holidays. Trump’s impeachment had limited impact on currency markets.

The dollar was down 0.1% against a basket of currencies not far from a six-day high of 97.475 touched on Wednesday. Dollar traders were sanguine after a majority of lawmakers in the U.S. House of Representatives voted to impeach Trump.

The dollar was a shade firmer against the safe haven yen at 109.56.

In New Zealand, better-than-expected third quarter economic growth data sent the New Zealand dollar bouncing off a one-week low at $0.6592.

The Australian dollar was up 0.3%, boosted by a surprise fall in unemployment. This fall in the country’s unemployment rate is seen as reducing the likelihood of further interest rate cuts.

The euro was up 0.2% versus the dollar, possibly still boosted by Wednesday data showing Germany’s business morale improving.

The pound remained under pressure on renewed fears of a chaotic Brexit. It was last at $1.3081 after sliding nearly 2% in as many days. The Bank of England kept interest rates steady on Thursday. The reasoning was that it was too soon to gauge how much Prime Minister Boris Johnson’s election victory would lift the Brexit uncertainty.

Oil prices hovered near three-month peaks, buoyed by falling U.S. crude inventories and thawing US-China trade relations. Brent crude futures were down 7 cents at $66.10 a barrel at 1321 GMT, after five straight days of gains. U.S. WTI crude fell 1 cent to $60.83 a barrel. The contract for January delivery expires today.

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, Investing, CNN money