Dollar Falls Amid US-China Trade Uncertainty
October 10 2019 - 2:22AM
RTTF2
The U.S. dollar fell against its most major counterparts in the
European session on Thursday, as market participants digested
conflicting headlines on trade talks between the U.S. and
China.
The United States and China made no progress in deputy-level
trade talks held on Monday and Tuesday in Washington, the South
China Morning Post (SCMP) said, citing sources.
The White House has denied reports suggesting that Chinese Vice
Premier Liu He is planning to leave Washington on Thursday after
just one day of minister-level meetings.
All eyes are focused on Washington, where high-level trade talks
between China and the United States begin today.
Meanwhile, U.S. Democratic presidential contender Joe Biden
called for the impeachment of Trump for the first time in a
deepening partisan fight over a congressional investigation of the
Republican president.
On the economic front, U.S. weekly jobless claims figures and
consumer price index for September will be released at 8:30 am
ET.
The currency has been trading in a negative territory against
its major counterparts in the Asian session, excepting the yen.
The greenback weakened to a 2-day low of 0.9915 against the
franc from Wednesday's closing value of 0.9959. The currency is
likely to face support around the 0.96 level.
The greenback slipped to 1.1020 against the euro, its lowest
since September 25. Next near term support for the greenback is
likely seen around the 1.12 level.
Data from Destatis showed that Germany's exports declined the
most in four months, while imports recovered at a faster than
expected pace.
Exports fell by more-than-expected 1.8 percent month-on-month in
August, reversing a 0.8 percent rise in July. Exports were forecast
to fall 1 percent.
The greenback edged down to 1.2249 against the pound, from a
high of 1.2200 hit at 5:00 pm ET. On the downside, 1.24 is likely
seen as the next support level for the greenback.
Data from the Office for National Statistics showed that the UK
economy expanded in three months to August for the second
consecutive time suggesting that it is on the course to avoid a
recession ahead of Brexit.
Rolling three-month gross domestic product growth increased to
0.3 percent from 0.1 percent in three months to July. This was also
faster than the expected 0.1 percent rise.
Reversing from a weekly high of 0.6277 seen at 6:45 pm ET, the
greenback dropped to a 2-day low of 0.6327 against the NZ currency.
The currency may challenge support around the 0.645 mark, if it
weakens further.
The greenback pulled back from an early weekly high of 1.3346
against the loonie, dropping to 1.3306. The greenback is seen
finding support around the 1.30 level.
Extending early slide, the greenback touched a 3-day low of
0.6762 against the aussie. This follows a 1-week high of 0.6710
seen at 7:00 pm ET. The next likely support for the greenback lies
around the 0.71 level.
On the other side, the greenback held steady against the yen,
after having risen to an 8-day of 107.77 at 9:30 pm ET. At
yesterday's close, the pair was worth 107.48.
Data from the Bank of Japan showed that Japan producer prices
were flat on month in September - matching forecasts following the
0.3 percent decline in August.
On a yearly basis, producer prices were down 1.1 percent - again
in line with expectations after sliding 0.9 percent in the previous
month.
Looking ahead, at 7:30 am ET, the European Central Bank
publishes the account of the monetary policy meeting of the
Governing Council held on September 11-12.
In the New York session, Canada new housing price index for
August, U.S. consumer price index for September and weekly jobless
claims for the week ended October 5 will be out.
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