Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Forex - U.S. Dollar Loses Momentum as Trump Extends Trade Deadline

Forex Feb 25, 2019 10:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
+0.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GBP/USD
+0.31%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/JPY
-0.71%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
-0.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NZD/USD
+0.66%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/ZAR
-0.77%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com - The greenback fell on Monday as hopes for a trade deal between the U.S. and China increased investor appetite for riskier assets such as equities and emerging market currencies and debt.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.08% to 96.28 as of 11:00 AM ET (16.00 GMT).

Emerging currencies such as the South African rand and the Mexican peso, which aren't part of that basket, hit their highest in two weeks against the dollar as some of the safe haven flows of the last couple of weeks unwound. Other 'commodity' currencies such as the Aussie and kiwi also continued to find buyers long after their domestic markets closed.

On Sunday U.S. President Donald Trump tweeted that he would push back a March 1 deadline for new tariffs on $200 billion worth of Chinese imports, and meet with Chinese President Xi Jinping at his Mar-a-Lago estate in Florida to conclude talks.

The news increased hopes that the two will sign a trade deal soon, although official Chinese news agency Xinhua and others cautioned that there were still differences between the two parties.

The dollar was up against the safe-haven yen, with USD/JPY rising 0.12% to 110.79.

Elsewhere, the euro rose due to the weaker dollar, the EUR/USD pair rising 0.13% to 1.1355. The British pound recovered slightly, but is still in a holding pattern as the political process governing Brexit continues to twist. U.K. Prime Minister Theresa May has pushed back the next "meaningful vote" on her withdrawal agreement (the original one failed by over 200 votes in the House of Commons) as lawmakers on both sides continue to push agendas that seem incapable of commanding a majority in parliament.

The outlook for sterling isn't clear whatever the politics throws up, but most still argue that the most favorable short-term outcome for sterling is the one that comes as close as possible to keeping the status quo.

"We have highlighted the dangerous precedent and the lack of legitimacy in the eyes of the Leave Camp if the first referendum is overturned, but investors would likely respond to a second referendum by taking sterling higher, " said Marc Chandler, managing partner of Bannockburn Global Forex. "We could envisage a move toward $1.35 or a little higher if a second referendum were called."

Forex - U.S. Dollar Loses Momentum as Trump Extends Trade Deadline
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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
Continue with Google
or
Sign up with Email