Trade Deal — News Archive

The US dollar was mixed today, falling versus commodity currencies, but staying flat or gaining versus majors. There were plenty of various fundamentals that were affecting the greenback.

The Japanese yen was largely flat against most of its major peers on Monday. While market participants were somewhat nervous after US President Donald Trump said that the United States are not ready for a trade deal with China, the US dollar was the beneficiary of the resulting risk aversion, not the yen.

The US dollar ended the previous trading week relatively soft as markets were digesting the news that the United States decided to implement tariffs on Chinese goods. The developments in the trade negotiations between the world’s two biggest economies are likely to affect the greenback during the current trading week, though US macroeconomic data can have its impact as well.

The US dollar gained on most major currencies during the past trading week but fell against commodity currencies. The reason for that was optimism about Sino-US trade talks, which led to risk appetite on markets.

The US dollar ended the week as the strongest currency on the Forex market even though fundamentals were not particularly supportive to the currency. It is just things in other parts of the world were even worse, with many countries forecasting slowing economic growth. Commodity currencies were leading the decline due to risk aversion caused by the economic slowdown.

The Japanese yen retreated after rising earlier today on risk aversion caused by bad news about Sino-US trade talks. Domestic macroeconomic data was mixed, giving the currency no direction.

The US dollar rallied against most other currencies today. The major reasons for the rally were positive macroeconomic data released in the United States on Wednesday and optimism about the trade talks between the USA and China.

The euro today dropped against the US dollar from the start of today’s session as the greenback rebounded on investors’ hopes about the outcome of the US-China trade talks. The rebound in US Treasury yields also boosted the greenback, which was under intense selling pressure since Friday last week following dovish Fed comments.

The euro today rallied higher against the US dollar following the release of the latest US employment change data in the early American session. The euro was also bid higher by the sell-off in global equity markets due to fears relating to the US-China trade truce and the recent arrest of the Huawei CEO in Canada.

The euro today rallied higher against the weaker US dollar boosted by bearish investor sentiment towards the world’s reserve currency. The EUR/USD currency pair rallied higher as markets reacted to falling US Treasury yields amid doubts about the trade ceasefire between the US and China.