Breaking News
0

Forex - Dollar Edges Back as Hopes for Trade Deal Rise

ForexFeb 18, 2019 03:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com -- Foreign exchange markets got off to a slow start Monday, with trading set to remain subdued due to a sparse data calendar in Europe and public holidays in North America.

The dollar has retreated slightly over the weekend amid hopes that the U.S. and China will find a way to de-escalate their trade war. Such hopes were the main driver of a rally in Asian stock markets overnight, with the Nikkei 225 and Hang Seng indices both rising over 1.5%, while mainland Chinese stocks gained even more.

Commodity prices, too, have rallied overnight, with crude oil touching its highest level since November.

Officials from China and the U.S. are due to continue talks this week in Washington DC.

At 03:00 AM ET (0800 GMT), the dollar index was at 96.71, down nearly 0.5% from the new high for 2019 that it hit last week. It was supported by the buck rising against the yen, as the world’s cheapest funding currency suffered most from the return of animal spirits. The USD/JPY pair rose to 110.61.

The euro was back above $1.13, up nearly half a cent from the low it hit on Friday when European Central Bank board member Benoit Coeure said the euro-zone economy’s slowdown had been deeper and broader than the ECB first thought.

Marc Ostwald, global strategist and chief economist with ADM ISI in London, said in a note to clients that markets are balanced between the “ostensibly positive aspect of central banks stepping back from, or pushing back on policy tightening narratives,” given the weakening growth outlook, and the risk of further financial repression, and its baggage of negative interest rates and crushed credit premiums.

The British pound was weaker against the dollar but was holding up against the euro after the EU’s securities regulator ESMA said it would issue temporary licenses to U.K.-based clearing houses in the event of a ‘no-deal’ Brexit. That means EU-based clients would still be able to clear trades through London in the short term, reducing the risk of financial volatility. Cable was at $1.2902.

Forex - Dollar Edges Back as Hopes for Trade Deal Rise
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email