US-China trade optimism holds, causing haven currencies to fall
Cate Camerota " | October 9, 2019
Dollar weakens along with other haven currencies as optimism holds for US-China trade talks. Commodity currencies were supported by the rise in crude oil which is almost 1% higher. Today at 2pm EST, the FOMC will release minutes from its last policy meeting.
October 9, 2019
EUR/USD 1.0978 GBP/USD 1.2220 USD/CAD 1.3317 AUD/USD 0.6745 USD/JPY 107.37 USD/CNH 7.13780 USD/ILS 3.5021 USD/MXN 19.5460 USD/CHF 0.99390 USD/INR 71.0625
The greenback is lower today as markets maintain risk-on sentiment following optimism that talks between the US and China could result in agreement to a partial trade deal. Fed Chairman Jerome Powell spoke yesterday and stated that although the Fed will not resume quantitative easing, they will resume Treasury purchases. The US dollar index is down slightly -0.1%.GBP
Sterling rose higher following a Times article stating that the EU could make a major concession over the Irish backstop - one of the largest obstacles to a Brexit deal. GBP/USD is up 0.3%.EUR
European Central Bank Vice President Luis de Guindos made a statement that September’s easing package would be unmodified for some time. EUR/USD remains largely range bound and unchanged staying beneath the 1.10 level.CAD
The Canadian dollar advanced against the US dollar this morning as oil strengthened and US-China trade optimism attributed to a boost in market risk appetite. WTI crude higher by almost 1%.ASIA/PACIFIC
The Japanese yen extends losses after a report that China is still open to a partial trade agreement with the US. An official with direct knowledge stated that China would accept the deal if there are no more tariffs imposed by President Donald Trump.