The euro edged down on Monday as investors awaited Christine Lagarde’ s first address as European Central Bank chief.
The common currency kept near its highest level in weeks on hopes that the United States may opt not to impose tariffs on auto imports. U.S. Commerce Secretary said in an interview that Washington may not need to slap tariffs on imported vehicles later this month. He added that US holds “good conversations” with automakers in the European Union, Japan and Korea. The tariffs have already been delayed once by six months, and trade analysts say that could happen again.
Lagarde delivers her first address on Monday as ECB chief. Markets assume she will stick with the easy policy script of her predecessor, Mario Draghi.
The euro was last trading down slightly at $1.1163 but close to the $1.1180 high it reached last month. The common currency rose as the dollar weakened on views that the U.S. economy was starting to show signs of a slowdown. This prompted investors to expect more interest rate cuts from the Federal Reserve.
The U.S. currency also lost its appeal as a safe-haven currency as investors’ hopes rose that a 16-month long trade war between the United States and China could soon reach an end.
START TRADINGForex – Lagarde’ s first address as ECB head
Markets await Lagarde’s first speech as new ECB head.
An index that tracks the dollar against six major currencies was last trading flat at 97.299.
The New Zealand, sensitive to risk sentiment, also jumped by the same extent to a 12-week high of 0.6466 against the dollar. It was last trading up 0.1% at 0.6435.
The sterling slipped on Monday, down around 0.1% against the dollar and euro. Investors’ attention focused on political developments as election campaigning gets under way. UK PMI data showed that construction shrank for the sixth month in a row in October. The pound was little changed by the data, last trading at $1.2924, holding below the $1.30 benchmark. Versus the euro, sterling was down around 0.1% at 86.39 pence. Sterling-dollar implied volatility gauges with a one-month maturity, which fell in October, have started to rise again.
Oil prices rose on Monday, with Brent reaching its highest in more than a month after the previous day’s boost. Growing expectations of a U.S.-China trade deal and Iran flagging OPEC discussions of a deeper output cut next month weighed. Brent crude futures rose 80 cents to $62.49 a barrel, erasing earlier losses and reaching peaks last seen on Sept. 27. December U.S. crude futures also swung back into positive territory, up 64 cents at $56.84 a barrel.
Gold eased on increasing risk appetite amongst investors, driven by optimism on U.S.-China trade talks and fading fears of a global economic slowdown. Spot gold fell 0.1% to $1,511.44 per ounce at 1220 GMT. U.S. gold futures edged 0.2% higher at $1,513.70.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money