US-China trade talk optimism pushes US dollar to highest levels since August
Cate Camerota " | November 8, 2019
Haven currencies weaken as general risk-on sentiment increases given the optimism around a trade deal between the US and China. Canada released data this morning (housing starts and employment numbers) softer than expected resulting in the loonie weakening above 1.3200. Sterling remains largely unchanged after declining this week in reaction to uncertainty for the upcoming December election.
November 8, 2019
EUR/USD 1.1026 GBP/USD 1.2810 USD/CAD 1.3236 AUD/USD 0.6857 USD/JPY 109.32 USD/CNH 6.9865 USD/ILS 3.4938 USD/MXN 19.1276 USD/CHF 0.9965 USD/INR 71.2850
US dollar is set for its longest win streak in two months, gaining for the fifth day on optimism for the trade talks between the US and China. The market has signaled that investors are pushing out bets for further easing by the Federal Reserve.GBP
Sterling remains largely unchanged trading below 1.2800 earlier in the session. This is the first time the currency pair has traded under the 1.2800 handle in three weeks. The uncertainty around the election has caused sterling to decline almost 1% this week.EUR
Despite improvement in German trade numbers and better than expected manufacturing production in both France and the Netherlands, EUR/USD is set for a weekly loss. The currency pair has fallen more than 1% since Monday.CAD
USD/CAD traded above the 1.32 handle after the release of Canadian Housing Starts showed 202k vs. the expectation of 220k. The currency pair is headed for a weekly gain of over 0.5%. WTI crude is down ~1% trading around $56.50/bbl.ASIA/PACIFIC
Reserve Bank of Australia released comments stating that the central bank is prepared to ease further if needed, causing the currency to weaken. Haven currencies including Japanese yen have suffered this week as markets increased risk-on sentiment.