Forex - Dollar Edges Lower Amid Mixed Messages on Trade

Forex - Dollar Edges Lower Amid Mixed Messages on Trade

Investing.com  | Dec 05, 2019 08:09

Forex - Dollar Edges Lower Amid Mixed Messages on Trade

Investing.com - The dollar edged lower against a basket of its rivals on Thursday as mixed messages on trade from U.S. President Donald Trump tempered hopes that China and the U.S. may soon reach an agreement to end their protracted trade war.

Trump said on Wednesday that trade talks with China were going "very well," sounding more positive than on Tuesday when he said a trade deal might have to wait until after the 2020 U.S. presidential election.

His comments on Tuesday, which raised the prospect of a long extension of the trade war between the world's two largest economies, hit market sentiment.

Markets rebounded on Wednesday when Bloomberg reported that the two sides are moving closer to an agreement.

"I thought the markets had stopped playing headline ping- pong on trade, but evidently not," said National Australia Bank's head FX strategist, Ray Attrill. "Another day, another reversal of what happened the previous day."

If Beijing and Washington cannot reach an agreement soon, the next important date is Dec. 15, when the U.S. is due to impose more tariffs on Chinese goods.

Movements in major currencies were muted. The safe-haven Japanese yen was steady at 108.86 per dollar by 02:56 AM ET (7:56 GMT), while the Swiss franc inched higher to 0.9879 per dollar.

The euro was a touch higher against the dollar at 1.1083, which pushed the U.S. dollar index down 0.1%.

In the euro zone, data showed that German factory orders unexpectedly declined in October, indicating that the manufacturing sector in the bloc’s largest economy is struggling to pull out of a more than year long slump.

The British pound touched fresh eight-month highs, buoyed by expectations that Prime Minister Boris Johnson would win a majority at next week's election, paving the way for Britain to leave the European Union on Jan. 31.

Currency traders are turning their attention to the closely watched U.S. non-farm payrolls report due Friday to determine how well the U.S. economy is holding up amid a global slowdown.

The Australian dollar dipped to 0.6843 after softer-than-expected retail sales data.

The New Zealand dollar was at 0.6536 after rising as high as 0.6562 overnight, its strongest since August. The kiwi has been boosted this week by a rebound in domestic business sentiment while expectations for monetary easing have diminished.

The Reserve Bank of New Zealand on Thursday lifted bank capital requirements, but not as much as some investors had feared, and with a long lead time, reducing expectations that monetary easing might be needed to offset the hike's tightening effects.

--Reuters contributed to this report

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';