May 29, 2020

Dollar firmed ahead of new trade talks

LQDFX Forex news Blog Dollar firmed ahead of new trade talks

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The dollar firmed on Monday, breaking a four-day losing streak, as fresh concerns over the trade war kept risk appetite subdued.  

Trade-oriented currencies such as the Australian dollar under pressure. A Bloomberg report that Chinese officials were reluctant to agree to U.S. President Donald Trump’s broad trade deal cast a pall over investors. Weak U.S. economic data last week raised concerns about the economic outlook. Data out of the United States on Friday showed jobs growth slowed in September and wage growth stalled, even as unemployment dropped to a 50-year low.

The United States and China are set to meet for trade negotiations in Washington on Oct. 10-11. Deputy-level meetings will be held on Monday and Tuesday, with top-level talks scheduled for Thursday and Friday. However, latest news reports suggest Beijing may be looking to restrict the scope of any deal.

The dollar, which tends to benefit when trade tensions flare up, rose further off one-month lows hit last week. A string of poor data suggested the conflict was inflicting a bigger toll on the world’s biggest economy. The greenback firmed 0.15% against a basket of currencies to 98.90, after weakening around 1% last week.


Forex – Dollar firmed ahead of new trade talks

There was no onshore trading as China is still on a break for its national day. The Fed Open Market Committee’s minutes from its September meeting are due on Wednesday.

The dollar edged up against rivals after four straight days of losses last week.

The Canadian dollar strengthened against its U.S. counterpart on Monday as oil prices rose. Loonie was trading 0.1% higher at 1.3293 to the greenback, or 75.23 U.S. cents.

The yen gained slightly slipped on Monday as investors nervously awaited U.S.-China talks this week. The Japanese yen, regarded as a safe haven by virtue of Japan’s status as the world’s biggest creditor, edged up 0.1% to 106.79 per dollar.

The euro traded as low as $1.0964 but held off 2-1/2-year lows of $1.0879 hit last Tuesday.

Other trade-exposed currencies such as the Australian dollar also fell, with the former losing a quarter percent and the won down 0.4%.

The pound slipped 0.2% to around $1.23, with only a few weeks until the UK’s scheduled Brexit on Oct. 31. Sterling fell as investors fear Britain and the European Union are no closer to agreeing a Brexit withdrawal deal.

Gold prices eased on Monday as the dollar firmed after a report said China was reluctant to agree to a broad trade deal with Washington. But bullion held a tight range as investors took a wait-and-see approach ahead of U.S.-China talks this week. Spot gold was down 0.3 % at $1,499.79 per ounce at 1129 GMT. Prices firmed 0.5% last week on concerns of slowing global growth.

Oil prices rose. U.S. crude oil futures rallied 1.5% to $53.61 a barrel, supported by challenges to supply facing major exporters. WTI crude were 0.5% higher at $53.06  

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, Investing, CNN money