U.S. Dollar Climbs On US-China Trade Talk Hopes
August 20 2018 - 2:52AM
RTTF2
The U.S. dollar strengthened against its major counterparts in
the European session on Monday, as sentiment lifted up amid hopes
that the U.S.-China trade talks this week might help resolve an
escalating trade war.
Underlying sentiment remain supported after the Wall Street
Journal indicated that U.S. President Donald Trump and his Chinese
counterpart Xi Jinping are considering meeting in November on the
sidelines of multilateral summits.
China and the United States will hold lower-level trade talks
this week, just before new U.S. tariffs on $16 billion of Chinese
goods take effect.
Federal Reserve Chairman Jerome Powell is scheduled to speak
Friday at the annual global central bank conference on monetary
policy.
In addition, the Fed will release the minutes from its July
31-August 1 policy meeting on Wednesday, with investors looking for
clues on whether the central bank will raise borrowing costs in
September. The currency was trading mixed against its major
counterparts in the Asian session. While it rose against the euro
and the pound, it held steady against the yen. Against the franc,
it fell.
The greenback rose to 110.68 against the yen, from a low of
110.41 seen at 8:00 pm ET. The next possible resistance for the
greenback is seen around the 112.00 area.
The greenback edged up to 0.9968 against the franc, after having
fallen to 0.9943 at 10:45 pm ET. If the greenback rises further, it
may find resistance around the 1.01 area.
Reversing from an early low of 1.1440 against the euro, the
greenback ticked up to 1.1403. On the upside, 1.12 is likely seen
as the next resistance level for the greenback.
Figures from Destatis showed that Germany's producer price
inflation held steady in July, in line with expectations.
Producer prices grew 3.0 percent year-on-year in July, the same
rate of increase as in June.
Having fallen to a session's low of 1.2753 against the pound,
the greenback reversed direction and rose to 1.2729. The greenback
is poised to find resistance around the 1.25 level.
Data from property website Rightmove showed that U.K. house
prices dropped in August as more sellers entered the market during
summer holiday season.
Average asking prices decreased 2.3 percent in August from
July.
The greenback advanced to 1.3072 against the loonie, from
Friday's closing value of 1.3061. The greenback is seen finding
resistance around the 1.32 level.
The greenback bounced off to 0.6613 against the kiwi, from an
11-day low of 0.6640 hit at 5:00 pm ET. Next key resistance for the
greenback is seen around the 0.65 region.
On the flip side, the greenback held steady against the aussie,
after falling briefly to 0.7317 at 4:00 am ET.
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