FX Market Wobbly ahead of Trade War News
The FX market is off to a soft start this week as traders await in silence new updates regarding the US-China trade war.
Against the Japanese yen, the dollar was slightly higher at 108.81 yen.
Against the euro, it was $1.1062, recovering from a monthly low of $1.0989 that came out on Thursday.
Meanwhile, the British pound gained 0.2% to a two-week high at $1.2929.
The surge came after British Prime Minister Boris Johnson said that Conservative Party bets at the December elections had promised to support his Brexit deal.
The US dollar index, which pits the buck against other major currencies, was lower at 97.905. This figure is the index’s weakest level since November 7.
Elsewhere, the Aussie traded 0.2% lower at 0.6808 against the dollar. The Reserve Bank of Australia will release its policy meeting minutes on Tuesday. The ECB, meanwhile, will release its minutes this Thursday.
FX Market Standing by for Trade War Updates
Meanwhile, the CNY continued to be weak against the dollar at 7.0112.
The People’s Bank of China cut interest rates during its seven-day reverse repo agreements. That was the first time since October 2015.
China is currently trying to boost business confidence in the country after last week’s weak economic data results.
Apart from that, traders have yet to see any big update on the trade war negotiations between the US and China.
Chinese state media Xinhua reported that Vice Premier Liu He talked to US Treasury Secretary Steven Mnuchin.
He also spoke with US Trade Representative Robert Lighthizer about a phase-one trade deal over the phone over the weekend.
The report said the two sides had “constructive discussions” regarding “each other’s core concerns.”
At the same time, positive signals came out of White House Economic Advisor Larry Kudlow. Last Friday, Kudlow said that the US and China were close to a deal.
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