U.S. Dollar Advances On Trump Trade Remarks
August 26 2019 - 02:28AM
RTTF2
The U.S. dollar strengthened against its major counterparts in
early European deals on Monday, following U.S. President Donald
Trump's positive comments on trade suggesting the restart of trade
talks with China.
Speaking on the sidelines of the G7 meeting in Biarritz, France,
Trump said that China has requested U.S. trade team to continue
negotiations and he would accept the offer.
"China called last night our trade people and said let's get
back to the table," Trump told.
China's Vice Premier Liu He remarked that Beijing is ready to
solve the problem through consultation and cooperation with a calm
attitude.
China firmly opposes the escalation of the trade war, he told at
the opening ceremony of 2019 Smart China Expo in Chongqing.
Markets viewed these comments as indications of de-escalation of
the trade war, after both sides announced tit-for-tat tariffs on
others' goods on Friday.
The greenback has been trading higher against its major
opponents in the previous session, excepting the pound.
The greenback rose to 1.2234 against the pound, from a low of
1.2285 hit at 6:15 pm ET. The currency is likely to find resistance
around the 1.20 level.
Following near a 2-week low of 1.1164 seen at 6:30 pm ET, the
greenback reversed direction and edged higher to 1.1111 against the
euro. The greenback is seen finding resistance around the 1.08
level.
Survey results from Munich-based Ifo institute showed that
German business confidence weakened more than expected in August to
the lowest since late 2012.
The business climate index fell to 94.3 in August from revised
95.8 in July. This was the lowest since November 2012 and below the
forecast of 95.0.
The greenback bounced off to 105.99 against the yen, from near
an 8-month low of 104.45 it touched at 6:15 pm ET. If the greenback
rises further, 109.00 is possibly seen as its next resistance
level.
Final data from the Cabinet Office showed that Japan's leading
index eased to the lowest level in nearly nine-and-a-half years in
June, as initially estimated.
The leading index, which measures the future economic activity,
fell to 93.3 in June from 94.9 in May.
The greenback appreciated to 0.9798 against the franc, after
having dropped to near a 2-week low of 0.9713 at 6:15 pm ET. Next
key resistance for the greenback is seen around the 0.96 area.
On the flip side, the greenback dropped to 1.3285 against the
loonie and 0.6767 against the aussie, from its early high of 1.3319
and near a 3-week high of 0.6690, respectively. The greenback is
poised to challenge support around 1.30 against the loonie and 0.71
against the aussie.
The greenback held steady against the kiwi, after having
retreated from a 4-day high of 0.6341 at 6:30 pm ET. At last week's
close, the pair was worth 0.6394.
Data from Statistics New Zealand showed that New Zealand's trade
deficit widened in July from last year as exports declined amid an
increase in imports.
Exports of goods fell 5.8 percent annually to NZ$5 billion in
July. Meanwhile, imports advanced 3.1 percent to NZ$5.7
billion.
The U.S. durable goods orders for July are scheduled for release
in the New York session.
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