Dollar has longest losing streak in a month; optimism on US-China trade talks continue
Cate Camerota " | December 5, 2019
December 5, 2019
EUR/USD 1.1099 GBP/USD 1.3139 USD/CAD 1.3166 AUD/USD 0.6823 USD/JPY 108.892 USD/CNH 7.0464 USD/ILS 3.4596 USD/MXN 19.3826 USD/CHF 0.9894 USD/INR 71.2730
Optimism for trade deal between US and China has pushed the US dollar lower. The currency is experiencing its longest losing streak in a month.GBPSpeculation that the Conservative Party will win next week’s election in the UK has supported the sterling. GBP/USD hit a fresh cycle high of 1.3148, the highest since May. The currency pair is having its longest winning streak since June.EUREUR/USD hit levels above 1.11 and is currently trading slightly below that figure. The currency pair pulled back after data out of Germany showed that factory orders unexpectedly fell, suggesting that the eurozone’s largest economy is still struggling to fend off recession.CADUSD/CAD broke through its lowest levels in a month trading to the 1.3165 level. Bank of Canada Deputy Governor Timothy Lane stated that the central bank is optimistic on the prospects for the economy supporting the loonie after yesterday’s meeting where the decision to keep interest rates on hold was released.ASIA/PACIFIC
Report showing that the Japanese government is planning a stimulus package of 25 trillion yen pushed USD/JPY lower to 108.78. The currency pair has since reversed losses as general risk-on sentiment for the markets continues on optimism for trade talks between US and China.
NZD/USD hit four-month highs before reversing gains as traders trim bets for an interest rate cut after the Reserve Bank of New Zealand allowed local lenders more time to meet capital requirements. The RBNZ stated that the central bank will keep their monetary policy in a “hold phase.”