Breaking News

Forex - Dollar Subdued as Sterling, Euro Shine

ForexSep 24, 2018 01:18PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. The dollar was roughly unchanged against its rivals on Monday. - The dollar retreated against its rivals Monday, pressured by a stronger pound amid lingering hopes of a UK-EU Brexit deal, while a firmer euro on positive remarks from European Central Bank Mario Draghi also hurt the greenback.

The U.S. dollar index, which measures the green against a trade-weighted basket of six major currencies, fell by 0.05% to 93.73.

Sterling rose as positive comments from German officials stoked investor optimism that the UK and EU would eventually reach an agreement on terms for Britain's future relationship with the bloc.

"Sterling has been helped because German officials said that a Brexit deal is still possible by November," said BK Asset Management. While the default position in the market "appears to be to assume that some sort of a deal will be done and only react if a no-deal Brexit looks inevitable," U.K. Prime Minister Theresa May's "desire to get a deal done" could be thwarted by "political consideration," the asset management firm added.

GBP/USD rose 0.41% at $1.3123.

Gains in the greenback were also kept in check by a stronger euro, which had followed an upbeat assessment of the eurozone from European Central Bank President Mario Draghi, who also reiterated the central bank's plan to end its massive bond-buying programme at year-end.

EUR/USD rose 0.15% to $1.1768.

An ongoing advance in emerging-market currencies compounded the dollar's timid start to the week as the Turkish lira and the South Africa rand enjoyed gains, despite analysts warning further gains could be stifled by rising U.S.-China trade tensions.

Emerging-market currencies are more vulnerable to U.S.-China trade war than other currencies as foreign investors are repatriating money amid rising yields in developed markets and emerging-market economies undershoot forecasts, according to ING.

China canceled trade talks with the United States, which were expected to take place this week after both nations launched fresh tariffs on each other last week.

That drummed up little support for the trade-sensitive yen as USD/JPY rose 0.04% to Y112.65.

Elsewhere, USD/CAD rose 0.24% to C$1.2947, shrugging off a surge in oil prices, which tends to boost the oil-sensitive loonie.

Forex - Dollar Subdued as Sterling, Euro Shine

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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?
Replace the attached chart with a new chart ?
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'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
Sign up with Email