Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar, Yuan Little Changed Despite Trump’s Comment

Published 11/27/2018, 01:17 AM
Updated 11/27/2018, 01:17 AM
© Reuters.

© Reuters.

Investing.com - The dollar and the yuan were flat on Tuesday even after U.S. President Donald Trump threatened to increase tariffs on $200 billion of Chinese goods.

In an interview with the Wall Street Journal, Trump said he expects to move ahead with raising tariffs on $200 billion in Chinese imports to 25% from 10% currently.

Trump said it was "highly unlikely" he would accept China's request to hold off on the increase, planned for Jan. 1. The comments ran counter to recent speculation about a possible deal when Trump meets Chinese President Xi Jinping at the G20 summit in Buenos Aires later this week.

The U.S. dollar index that tracks the greenback against a basket of other currencies was little changed at 96.893.

Traders also awaited a speech by Federal Reserve Chairman Jerome Powell on Wednesday and minutes from the central bank's meeting to be released the next day, for more hints on how many more times the Fed is likely to raise interest rates.

"Markets are really keen on what Powell has to say given there has already been a sharp adjustment in Fed hike expectations," said Nick Twidale, chief operating officer, Rakuten Securities.

"We see an acknowledgement of slowing global growth as negative for the dollar."

Meanwhile, the USD/CNY pair inched up 0.1% to 6.9480 as the People's Bank of China (PBOC) set the yuan reference rate at 6.9463 vs the previous day's fix of 6.9453.

The Australian dollar, often considered a barometer for global risk appetite, traded higher with AUD/USD last at 0.7236, up 0.24%.

The safe haven Japanese yen gained 0.11% against the dollar.

The GBP/USD pair slipped 0.12% to 1.2813 as Brexit worries continued to weigh on the currency.

"Parliament will vote on the deal on Dec. 11 so between now and then, sterling will most likely trade in range as the sceptics hold out for a final outcome," Kathy Lien, managing director of currency strategy, said in a note.

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.