King U.S. dollar bounces firmly after corporate earning season got off to a strong start.
Posted by OFX
USD – United States Dollar
The U.S. dollar bounces 0.17 percent this morning, following higher stocks on Tuesday as the corporate earnings season got off to a strong start. The S&P 500 and Nasdaq Composite rise 0.50 and 0.55 percent respectively, pulling the Greenback higher and gold lower.
The possibilities of a trade deal between the U.S. and China brought excitement to financial markets last Friday. China agreed to more than double its annual purchases of U.S. agriculture, while the U.S. agreed to not implement its tariffs increase on Chinese imports on Oct. 15th. However, concessions on intellectual property rights still need to be determined. President Trump said it would take up to five weeks to complete “phase one” of the deal.
Steven Mnuchin, US Treasury Secretary, has advised that a new round of tariffs on Chinese goods set for December 15th would be triggered if Beijing fails to finalize the “phase one” deal set by Trump last week. Beijing may send a delegation led by Vice Premier Liu He, China’s top negotiator, to finalize a written deal that could be signed by the presidents at the Asia-Pacific Economic Cooperation summit in mid-November in Chile.
The U.S. dollar rises around 0.19 percent and the EUR/USD pair falls 0.28 percent this morning. The most affected G-20 currencies this morning are the Aussie dollar and Kiwi dollar, falling 0.4 and 0.5 percent against the Greenback, respectively.
Key Movers
The IMF continues downgrading its global growth forecast for a fifth straight cut, saying that the world’s largest economies are decelerating as trade tensions are eroding global growth. IMF Chief Economist Gita Gopinath wrote the following in the report, “…with a synchronized slowdown and uncertain recovery, the global outlook remains precarious, … There is no room for policy mistakes and an urgent need for policy makers to cooperatively de-escalate trade and geopolitical tensions.”
The British Pound erased some of its impressive gains after the European Union’s chief Brexit negotiator, Michel Barnier, said that the U.K.’s proposals for a deal lacked detail. Furthermore, the Prime Minister’s coalition allies, Northern Ireland’s Democratic Unionist Party, also suggested doubts about the plan. And finally, the European negotiators warned that Boris Johnson’s Brexit plan isn’t good enough to be the basis of a deal. To add more drama, Jean-Claude Juncker said Brussels are expected to approve an extension past the Oct. 31st deadline if London asks for another delay.
Expected Ranges
USD/CAD: 1.3200 – 1.3241 ▲
EUR/USD: 1.0965 – 1.1040 ▼
GBP/USD: 1.2500 – 1.2760 ▲
AUD/USD: 0.6731 – 0.6770 ▼
NZD/USD: 0.6255 – 0.6291 ▼
Posted by OFX
The post King U.S. dollar bounces firmly after corporate earning season got off to a strong start. appeared first on .
