American Market, the Best Among Three
Markets pay close attention to this week’s Federal Reserve meeting and the US-China trade developments. The American Dollar Index USDX added 0.04% at $97.80.
Many expect the Fed bank to cut interest rates for the third time this year. However, the organization showed no signs of any inclination on their decision.
US President Donald Trump recently announced a trade agreement went ahead of schedule but did not state any exact timing. Washington said they were considering an extension on certain tariff exclusions on $34 billion Chinese imports.
USD/GBP added 0.11% at £0.7781 when the UK declined their prime minister’s call for a snap election. Additionally, the USD/EUR pair went up at 0.12% at €0.918 after yesterday’s high.
Meanwhile, the European Central Bank’s recently appointed President, Christine Lagarde, will sit in the office on Friday. Investors applauded former ECB head Mario Draghi for saving the European economy.
The EUR/GBP pair rose by 0.05% at £0.8629.
American President Finally Expands on Phase One
After weeks of quiet between the US and China, American President Donald Trump emerges with optimistic news. He claimed the participating countries are about to sign a “very big portion of the China deal.”
Trump said Phase One would “take care of the farmers” and solve some banking needs. Both are significant areas of discussion between the long-running war.
Alongside the said agreements, other issues include intellectual properties and financial services. China also promised to buy $40 billion to $50 billion worth of American agricultural produce.
If the countries do not end their conflict soon, many analysts claim their decline would lead to worldwide economic collapse.
The US agreed not to hike tariffs to 25% to 30% on $250 billion worth of Chinese imports. Still, the 25% tariff lingers.
Trump’s threat of tariffs on another $160 billion worth of Chinese goods from December 15 looms over Beijing.
The USD/CNY pair slumped 0.04% at ¥7.0641.
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