U.S. President Donald Trump has only days to take his tariff decision to impose levies on nearly $160 billion in Chinese consumer goods.
FX markets more broadly struggled for direction. Investors await the Fed, UK election, a European Central Bank meeting on Thursday and the Dec. 15 trade deadline.
Progress on talks to resolve the US-China trade dispute with China remains elusive. President Donald Trump has just days to decide whether to impose levies on nearly $160 billion in Chinese goods. Beijing has warned that it would retaliate if the United States escalates the trade dispute. However a report of officials from both the United States and China saying the groundwork was being laid to push back the tariff deadline.
Christine Lagarde’s first policy meeting at ECB chief was unlikely to produce any fireworks.
Eyes are fixed on the latest outcome of the Federal Reserve’s deliberations on interest rates. Economic uncertainty stemming from the U.S.-China trade war has prompted the U.S. Fed to cut interest rates three times this year. It is almost unanimously expected to leave interest rates unchanged on Wednesday.
Data on Wednesday at 8:30 a.m. ET is expected to show the Labor Department’s consumer price index (CPI) rose 0.2% in November, compared with a 0.4% gain a month earlier, according to economists polled by Reuters. Other upcoming domestic indicators of interest this week include monthly inflation data and retail sales.
START TRADINGForex – All eyes on Trump’s tariff decision
Βroader FX markets were quiet before central bank meetings and a U.S.-China trade deadline.
The US dollar clawed higher as investors awaited the outcome of the Federal Reserve meeting. The greenback drew some support from hopes that U.S. President will delay the imposition of more tariffs on Chinese goods. The dollar rose 0.1% against a basket of currencies and 0.1% versus the euro to $1.1081.
The dollar was down marginally against the Japanese yen at 108.67.
The Sterling recovered most of its losses touched off by a poll showing Conservative lead narrowing in Thursday’s general election. Sterling’s recent rally came to a halt after the latest polling data. The pound fell to as low as $1.3107 but was last at $1.3154, flat on the day. Against the euro, it was up around 0.1% at 84.225 pence, but still off Monday’s 2-1/2 year high of 83.940 pence.
Oil prices slipped for a third straight day after industry data showed an unexpected build-up of U.S. crude inventories. Investors waited to see if a fresh round of U.S. tariffs on Chinese goods would come into force on Sunday.
Brent futures fell 48 cents to $63.86 per barrel by 1220 GMT, set for their biggest daily fall since Dec. 2. West Texas Intermediate crude slipped 36 cents to $58.88.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money