Major Currencies Steady, PBOC Cuts Repo Rate
Major currencies traded on Monday on some shaky footing as traders awaited news regarding the trade war.
The focus remained on whether the two sides could soon sign a deal to end the conflict. This trade row has hampered global economic growth in the months since it started.
According to expert market strategists, the currencies will move in line with trade war headlines. That’s because markets have been expecting significant developments soon.
At first, the signing intended to happen on the sideline of the Asia Pacific countries’ summit. The original schedule was last weekend.
However, Chile, which was the host nation, canceled the event because of the domestic protests in the country.
Analysts have warned against too much optimism over the fate of the deal. Throughout the trade war, major apparent breakthroughs took place, only to be canceled or quickly eliminated by new disputes.
PBOC Cuts Report Rate, Major Currencies Move
Over in China, the People’s Bank of China slashed its interest rate for seven-day reverse repurchase agreements.
This decision is the first of its kind since October 2015.
As a result, the USDCNY pair crept 0.1% up to 7.0112. Meanwhile, the US dollar index was 0.1% to 97.810.
The US Federal Reserve will publish the minutes of its October meeting this Wednesday. Also, Fed policymakers will deliver speeches ahead of the Thanksgiving holiday.
As for the economic side, the Commerce Department said last week that US retail sales recovered in October.
However, consumers cut back on purchases of household items and clothing. The data raised concern over the consumer strength that currently supports the US economy.
Elsewhere, the euro traded at $1.1062 yesterday after slumping to a one-month low of $1.0989 last week.
Meanwhile, the British pound gained 0.2%, making it the most active among major currencies. It reached a two-week high of $1.2929.
The Australian dollar slipped 0.2% at $0.6809, while the New Zealand dollar inched higher at $0.6400.
