Forex - Dollar Mixed as U.S. Drops China "Manipulator" Label

Forex - Dollar Mixed as U.S. Drops China "Manipulator" Label

Investing.com  | Jan 14, 2020 08:30

Forex - Dollar Mixed as U.S. Drops China

By Geoffrey Smith

Investing.com -- The dollar was little changed against other major currencies in early trading in Europe on Tuesday, while the pound continued to give ground amid growing expectations of an interest rate cut from the Bank of England at the end of the month.

By 3 AM ET (0800 GMT), the dollar index, which tracks the greenback against a basked of developed market currencies, was up less than 0.1% at 97.095, consolidating gains of around 1% since the start of the year.

The euro was up 0.1% at $1.1147, while Sterling bounced slightly after testing but failing to break through Monday’s lows. It was down 0.1% at $1.2978, and at 1.1648 euros.

The Chinese yuan also ground higher after the U.S. removed it from its list of currency manipulators, an apparent goodwill gesture ahead of the signing of the two countries’ partial truce in trade relations on Wednesday. It rose as high as 6.8669 before retracing slightly.

"China has made enforceable commitments to refrain from competitive devaluation, while promoting transparency and accountability," Treasury Secretary Steven Mnuchin said in a statement.

Politico reported that the so-called Phase-1 deal will include enforceable commitments from China to buy over $200 billion of U.S. goods across four sectors (energy, agriculture, manufactured goods and services) over a two-year period.

Earlier, Chinese trade data showed imports bouncing well above expectations in December, a data point that would normally support European assets. Exports also rose, more than expected, boosting hopes that the worst of its economic slowdown is now over.

Further Chinese data is due at 4 AM ET (0900 GMT) with the publication of new loans and total social financing.

An otherwise quiet day for data is punctuated at 8:30 AM ET by December’s U.S. consumer price figures.

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 Polski Português (Portugal) Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+