EUR trades above $1.10 while risk-on sentiment continues to drag on USD
Cate Camerota " | October 10, 2019
Optimism continues for a partial trade deal from US-China trade talks. USD and other haven currencies continue to be weighed-down by this sentiment while EUR and GBP are higher this morning. EUR/USD trades at best levels in two weeks, above the 1.10 handle.
October 10, 2019
EUR/USD 1.1021 GBP/USD 1.2228 USD/CAD 1.3315 AUD/USD 0.6751 USD/JPY 107.68 USD/CNH 7.1254 USD/ILS 3.5065 USD/MXN 19.5648 USD/CHF 0.9936 USD/INR 71.0712
US dollar continues its decline as trade talks between the US and China advance. The market is optimistic that these conversations will result in a partial trade deal including the US potentially rolling out a previously agreed-on currency pact with China.GBP
Sterling started slightly higher in today’s trading session, staying above the $1.22 level. The market is modestly optimistic about a meeting today between UK Prime Minster Boris Johnson and Irish counterpart Leo Varadkar that could shape the future Brexit deal.EUR
EUR rallies for a second day gaining as much as 0.5%, trading to the $1.1020 level. Later today, the ECB will publish its September meeting minutes. A report from the Financial Times states that Mario Draghi ignored internal advice to restart quantitative easing.CAD
The Canadian dollar strengthened as the market focuses on trade negotiations between the US and China. Higher WTI crude oil (up 0.7% at $52.95/bbl) also supports the loonie.ASIA/PACIFIC
The Japanese yen gained earlier in the session. The currency relinquished some of these gains after a report stating that trade talks between the US and China were cut short, was denied. The Chinese official, Liu He, who is leading the high-level trade talks is expected to stay in Washington through Friday.
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