U.S. Dollar Spikes Up As Trade Worries Recede A Little
The U.S. dollar strengthened against its major counterparts in
the European session on Monday, as worries over a trade war eased a
bit after U.S. denied reports of limiting some U.S. investments in
Over the weekend, a US official said that the administration
does not intend to block Chinese companies from listing shares on
U.S. stock exchanges at this time.
This came after media reports suggested Friday that the Trump
administration was considering ways to delist Chinese companies
from U.S. stock exchanges and limit U.S. investors' portfolio flows
The Chinese state-owned media called Washington's potential
restrictions on U.S. investments in China "the latest attempt at a
decoupling" and warned such measures will have significant
repercussions for the Chinese and U.S. economies, as well as their
companies, in the future.
U.S. and China trade team are scheduled to meet in Washington on
October 10. The talks had broken down early this year, with both
sides responding with tit-for-tat tariffs on each others'
The currency held steady against its major counterparts in the
Asian session, excepting the yen.
The greenback appreciated to near a 2-week high of 0.9973
against the franc from last week's closing value of 0.9906. The
next likely resistance for the greenback is seen around the 1.01
Reversing from a low of 107.74 hit at 3:15 am ET, the greenback
edged up to 108.09 against the yen. The greenback may find
resistance around the 111.00 level.
Preliminary data from the Ministry of Economy, Trade and
Industry showed that Japan's industrial production declined at a
faster-than-expected rate in August.
Industrial production fell 1.2 percent month-on-month in August.
Economists had expected a fall of 0.5 percent.
The greenback spiked up to 1.0885 against the euro, a level
unseen since May 2017. On the upside, 1.06 is possibly seen as the
next resistance for the greenback.
Preliminary data from Eurostat showed that Eurozone unemployment
rate unexpectedly dropped in August to its lowest level in more
than a decade.
The seasonally adjusted unemployment rate fell to 7.4 percent
from 7.5 percent in July. Economists had expected the rate to
The greenback bounced off to 1.2290 against the pound, from a
low of 1.2330 hit at 5:00 am ET. The greenback is poised to find
resistance around the 1.21 region.
Data from the Bank of England showed that British households'
borrowing declined in August as uncertainties surrounding Brexit
weighed on consumer confidence.
The number of mortgage approvals for house purchase fell to
65,500 in August from an18-month high of 67,000 in July. This was
well below the forecast of 66,500.
The greenback reversed from an early low of 1.3224 against the
loonie, rising to 1.3260. If the greenback rises further, it may
find resistance around the 1.35 level.
On the flip side, the greenback retreated to 0.6760 against the
aussie and 0.6273 against the kiwi, from its early high of 0.6746
and a 4-year high of 0.6249, respectively. The greenback is seen
finding support around 0.71 against the aussie and 0.66 against the
US Dollar vs CHF (FX:USDCHF)
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US Dollar vs CHF (FX:USDCHF)
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