U.S. Dollar Rises On US-China Trade Deal Hopes
October 22 2019 - 4:24AM
RTTF2
The U.S. dollar strengthened against its major counterparts in
the European session on Tuesday, as investors cheered signs of
progress in U.S.-china trade talks.
U.S. President Donald Trump on Monday said that China had
already begun promised purchases of farm goods and that the first
part of a wider commitment was almost complete.
Trade Representative Robert Lighthizer said efforts to commit
the agreement to paper before the Asia-Pacific Economic Cooperation
summit in Chile next month are "on track" though some work remains
to be done.
Trump's economics adviser Larry Kudlow indicated that tariffs
scheduled for December could be cancelled if the talks go well.
The greenback strengthened to a 4-day high of 0.9892 against the
franc, up from Monday's closing value of 0.9857. Next near term
resistance for the greenback is likely seen around the 1.01
level.
The U.S. currency that ended Monday's trading at 1.1149 against
the euro appreciated to a 4-day high of 1.1133. The greenback is
seen facing resistance around the 1.10 mark.
The greenback edged higher to 1.3103 against the loonie, after
falling to a 3-month low of 1.3071 at 9:15 pm ET. The currency may
locate resistance around the 1.33 region, if it rises again.
Reversing from its early more than 5-week low of 0.6883 against
the aussie and 1-1/2-month low of 0.6436 against the kiwi, the
greenback advanced to 0.6855 and 0.6410, respectively. The next
possible resistance for the greenback is seen around 0.67 against
the aussie and 0.62 against the kiwi.
The greenback bounced off to 1.2922 against the pound, from a
low of 1.2987 seen at 11:00 pm ET. The greenback is likely to
challenge resistance around the 1.28 mark.
Data from the Office for National Statistics showed that the
U.K. budget deficit for September increased for the first time in
five years.
Public sector net borrowing excluding banks increased by GBP 0.6
billion from last year to GBP 9.4 billion in September. This was
the first September year-on-year increase for five years. On the
flip side, the greenback pulled back to 108.49 against the yen,
after rising to a 5-day high of 108.73 at 8:15 pm ET. Should the
currency drops further, it may challenge support around the 106.00
level.
Looking ahead, Canada retail sales for August and U.S. existing
home sales for September will be featured in the New York
session.
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