U.S. Dollar Falls Amid Risk Appetite On Trade Talk Hopes
December 11 2018 - 4:08AM
RTTF2
The U.S. dollar dropped against its most major counterparts in
the European session on Tuesday, as investors cheered progress in
trade talks between Washington and Beijing following news that
China's Vice Premier Liu He held telephonic conversation with
Treasury Secretary Steven Mnuchin to resolve the dispute.
The conversation was focused on Chinese purchases of
agricultural products and changes to fundamental Chinese economic
policies.
"Both sides exchanged views on putting into effect the consensus
reached by the two countries' leaders at their meeting, and pushing
forward the timetable and roadmap for the next stage of economic
and trade consultations work," China's commerce ministry said in a
statement.
Data from the Labor Department showed that U.S. producer prices
unexpectedly showed a modest uptick in the month of November.
The Labor Department said its producer price index for final
demand inched up by 0.1 percent in November after climbing by 0.6
percent in October. Economists had expected prices to be
unchanged.
The currency has been trading lower against its major
counterparts in the Asian session.
The greenback edged down to 1.1400 against the euro, from an
early 5-day high of 1.1350. The greenback is poised to find support
around the 1.15 mark.
Data from the Centre for European Economic Research showed that
German investor confidence rose strongly in December, defying
expectations for a modest weakening.
The ZEW Indicator of Economic Sentiment for Germany rose 6.6
points to reach minus 17.5 points in December.
The greenback reversed from an early high of 1.2550 against the
pound and fell to 1.2638. On the downside, 1.28 is seen as the next
likely support level for the greenback.
The greenback dropped to 0.9863 against the franc, its lowest
since October 16. The greenback is seen finding support around the
0.97 mark.
The greenback fell to 0.6904 against the kiwi, 0.7224 against
the aussie and 1.3378 against the loonie, from its early highs of
0.6862 and 0.7185, a 5-day high of 1.3422,respectively. The next
possible support for the greenback is seen around 0.70 against the
kiwi, 0.74 against the aussie and 1.32 against the loonie.
On the flip side, the greenback bounced off to 113.26 against
the yen, from an early low of 113.01. If the greenback rises
further, it may find resistance around the 115.00 region.
Data from the Bank of Japan showed that Japan M2 money stock
rose 2.3 percent on year in November, standing at 1,010.5 trillion
yen.
That was shy of expectations for an increase of 2.6 percent and
down from 2.7 percent in October.
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