The US dollar is slightly stronger vs. other safe-haven currencies as markets look to US/China trade negotiations
Peter Compton " | November 19, 2019
The US and China are still hammering out a “Phase-1” deal as part of a hopefully larger trade agreement. FX markets are listless as they await confirmation on either a US/China trade deal and/or the Brexit vote. Safe-haven Japanese yen and Swiss franc lost ground as traders closed risk-off positions in anticipation of positive news on the trade front.
November 19, 2019
EUR/USD 1.1079 GBP/USD 1.2942 USD/CAD 1.3208 AUD/USD 0.6829 USD/JPY 108.71 USD/CNH 7.0243 USD/ILS 3.4572 USD/MXN 19.3148 USD/CHF 0.9913 USD/INR 71.7162
The US dollar is flat despite October Building Permits coming in better than expected. Continuing the Fed watch, Boston’s Eric Rosengren warned against spurring inflation with overly aggressive policy easing, stating that he did not “think there’s a big cost to being a little below 2%”.GBP
The British pound drifted lower as financial markets await a live televised debate for main candidates for the December 12 General Election. Yesterday, the pound strengthened in hopes the Conservative party would win a majority - resulting in Boris Johnson’s Brexit deal finally making its way through the UK parliament in the coming months.EUR
The euro held recent gains as some FX traders began to close bearish positions. With the US/China trade talks dragging on and Brexit in the hands of the British voters, the euro has gained since the October lows and looks to push toward 1.11.CAD
The Canadian dollar lost some ground as oil prices continued to slide. The lack of a trade agreement between the US and China as well as higher oil inventories has caused the price of oil to fall 3% over the past 24 hours.ASIA/PACIFIC
Tensions in Hong Kong continue to take focus in the region. Current leader Carrie Lam ordered police to resolve the standoff at the Polytechnic University peacefully and urged protesters to cooperate.
The Australian dollar is stronger today despite central bank minutes revealing a case for cutting interest rates. Japan’s yen strengthened.