The euro gained against the greenback as hopes of a trade deal between the U.S. and China bolstered risk appetite globally. According to reports, U.S. and China are closer to finalize a trade agreement.
The latest boost to sentiment came after White House officials said United States and China expect to make more headway in trade talks this week. However, the United States will not send high-level officials to attend China’s second Belt and Road summit in Beijing this month. A U.S. State Department spokesman cited concerns about financing practices for the initiative.
Better than expected service sector data in Europe further helped the single currency as German 10-year Bund yields also headed back above zero. The services Purchasing Managers’ Index (PMI) rose to 53.3 from 52.8, ahead of the flash estimate of 52.7.
The euro was last up 0.28% against the U.S. dollar at $1.1233. The single currency on Tuesday fell to its lowest levels in more than three weeks. The common currency neared $1.1174, which if broken would send the currency to its weakest levels since June 2017.
START TRADINGForex – Risk sentiment boosted euro against dollar
The dollar was little changed by data on Wednesday that showed that U.S. private employers added 129,000 jobs in March. The figures were below economists’ expectations and the lowest since September 2017. Investors are next focused on Friday’s government employment report for March for further indications on the strength of the U.S. labor market and wage inflation.
The Australian dollar outperformed on strong local and Chinese economic data. The Australian dollar jumped 0.65% against the greenback after Chinese and local data gave the currency a boost. Activity in China’s services sector picked up to a 14-month high in March as demand improved at home and abroad. Australian retailers enjoyed their best sales in February since late-2017 in a boon to economic growth in the first quarter, signalling surprising resilience in household consumption.
The Sterling gained 0.25% against the U.S. dollar after Prime Minister Theresa May announced talks with the opposition Labour party in a bid to break the Brexit deadlock that may lead to a softer departure deal with the EU.
Oil nears the psychologically important $70, hovers near five-month highs on cuts and sanctions. Oil prices steadied on Wednesday after Brent pushed towards a nearly five-month high of $70 a barrel. Brent futures had moved up 24 cents, or 0.35%, to $69.61 by 1220 GMT. They earlier reached $69.96 – the highest since Nov. 12, when they last traded above $70. U.S. West Texas Intermediate crude rose a cent to $62.59, having briefly hit $62.99, the highest since Nov. 7.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.