Yet more talk from the trade war front is done as President Trump said that United States and China are close to agreement on the first phase of a trade deal.
Top negotiators from the two countries spoke by telephone and agreed to keep working on remaining issues. The negotiators discussed core issues related to the phase one deal and reached “a common understanding on resolving relevant problems.”
Comments from U.S. President Donald Trump sparked hopes of an imminent resolution to the prolonged trade war with China. Trump said on Tuesday that the United States was in the “final throes” of work on a deal that would defuse the 16-month trade war.
China has unveiled new guidelines about the protection of intellectual property, a move that could mark a big step toward appeasing the United States. It may even help pave the way for a long-awaited trade truce. Beijing’s announcement Sunday was short on detail, though the country did indicate that it could introduce stronger IP protections. Such measures could address a concern that Washington has been railing on for ages.
Overall, currency trading is slowing before the U.S. Thanksgiving holiday. Traders increasingly pricing in tighter trading ranges for major currencies.
START TRADINGForex – Yet more talk on the trade deal
Volatility in major currencies remained severely suppressed. Wednesday sees little new data released in the euro zone but some revisions in the United States ahead of Thursday’s Thanksgiving holiday.
The US dollar pushed higher on Wednesday and flirted with the $1.10 level against the euro. It was boosted by yet more talk of a deal to resolve the U.S.-China trade dispute.
Euro/dollar volatility remains at near record low levels. The currency pair is largely stuck in tight trading ranges in the absence of major catalysts such as monetary policy shifts.
The Canadian dollar was little changed against its U.S. counterpart on Wednesday, holding near an earlier five-day high. At 9:18 a.m. (1418 GMT), the Canadian dollar was trading nearly unchanged at 1.3270 to the greenback, or 75.36 U.S. cents. The Bank of Canada, which will make a policy decision next week, has expressed concern about the impact of trade conflicts on Canada’s commodity-linked economy.
The Australian dollar skidded 0.1 percent to $0.6779 as investors bet on more Reserve Bank of Australia easing.
The U.S. currency, which this week has risen in line with the more positive tone in trade negotiations, also increased versus the yen. The dollar gained another 0.1 percent to 109.13 yen on Wednesday.
The euro slipped 0.1 percent to $1.1004, close to a two-week low of $1.0989.
The pound recovered slightly to $1.2888 a day after polls showed a narrowing in the Conservative Party’s lead ahead of a Dec. 12 general election.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money