Breaking News
0

Forex - Dollar Edges Higher with Trade, Political Risk in Focus

ForexAug 22, 2018 04:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Dollar edges higher with trade, political risk in focus

Investing.com - The dollar edged higher against a basket of the other major currencies on Wednesday as investors awaited the outcome of trade talks between China and the U.S. this week and monitored growing political risks in the U.S.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, edged up 0.13% to 95.26 by 04:03 AM ET (08:03 AM GMT) after falling 0.69% the previous day.

Market sentiment has been boosted by the revival of trade talks between Washington and Beijing.

Investors hope the talks will ease trade tensions between the world’s two largest economies, even after U.S. President Donald Trump played down the prospects of any imminent success.

Hopes for progress on trade were offset by concerns over U.S. political developments overnight.

Trump’s former personal layer Michael Cohen possibly implicated the president on legal issues and Trump campaign chairman Paul Manafort was convicted on criminal counts in the first trial to come as a result of special counsel Robert Mueller's Russia probe.

The dollar had already come under pressure after Trump said Monday that he was "not thrilled" with Fed Chairman Jerome Powell for raising interest rates.

Trump nominated Powell to succeed former Fed Chair Janet Yellen earlier this year.

The Fed has been hiking rates and is expected to continue doing so, with another two increases expected this year.

The Fed was to publish the minutes of its August meeting later in the day, with investors on the lookout for any tweaks to its outlook on inflation, the economy and trade war fears.

On Friday, Powell is to make his first appearance as Fed chairman at the annual economic symposium in Jackson Hole.

The euro was a touch lower against the dollar, with EUR/USD dipping 0.11% to 1.1557. The single currency rallied 1.09% against the dollar on Tuesday, hitting a one-and-a-half week high of 1.1600.

The euro has rebounded since plumbing 13-month lows against the dollar last week amid fears over contagion effects on European banks from Turkey’s currency crisis.

The dollar edged higher against the yen, with USD/JPY rising 0.16% to 110.41, up from an overnight low of 110.02.

The pound pulled back from two-week highs hit on Tuesday, with GBP/USD slipping 0.16% to 1.2876 as concerns over the prospect of a no-deal Brexit continued to weigh.

Forex - Dollar Edges Higher with Trade, Political Risk in Focus
 

Related Articles

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