Dollar retains safe and sound-haven bid amid trade 'headline fatigue' – Reuters
SINGAPORE (Reuters) – The dollar held right away gains on Friday, as investors clung to the safe and sound-haven pending developments in Sino-U.S. trade negotiations and amid a growing scepticism about reports of progress in the talks.
FILE Picture: U.S. Dollar and Euro notes are seen in this June 22, 2017 illustration image. REUTERS/Thomas White/Illustration
Actions were slight as investors also looked to a slew of world manufacturing surveys posted later on in the day for clues on how deeply the U.S.-China trade dispute is hurting the world’s overall economy.
The greenback crept increased versus the Japanese yen JPY= to 108.58 yen and was constant versus the euro EUR= at $one.1064. Antipodean currencies were flat on the dollar, with the Aussie AUD=D3 buying $.6789 and the kiwi NZD=D3 $.6404.
Against a basket of currencies .DXY the dollar final treaded at ninety seven.993.
“Trade is the elephant in the area,” claimed Ray Attrill, Countrywide Australia Bank’s head of Fx method, nevertheless he additional that “headline fatigue has set in,” restricting volatility in the market’s response to new information and facts.
Investors had previously factored in the prospect that a partial truce could be agreed at a mid-November summit in Santiago. But that summit was cancelled and the route forward is now unclear.
China will try hard to resolve the dispute, Commerce ministry spokesman Gao Feng informed reporters on Thursday.
The Wall Street Journal also described that best U.S. negotiators had been invited to Beijing for a new spherical of deal with-to-deal with talks, further more elevating hopes and threat hunger.
Having said that trade experts and individuals shut to the White Residence informed Reuters that negotiations could slide into next year.
“With the continuous barrage of seemingly contradictory stuff, the market’s specified up seeking to next-guess the next headline,” claimed Attrill. “We’ll trade it at the time we know what is taking place.”
China’s yuan, which is highly sensitive to trade news, was steady at 7.0303 per dollar in offshore trade CNH=.
Elsewhere, the mounting dollar saved the British pound GBP= underneath $one.30, although a manifesto from the British Labour Get together placing out radical strategies to increase tax and nationalise infrastructure also weighed. Sterling final traded at $one.2916.
Purchasing supervisors indexes are thanks for Germany, the Eurozone, Britain and the United States later on on Friday, presenting a reading on the globe’s battered manufacturing sector.
“The existing narrative has world development slowing to year stop,” claimed Michael McCarthy, main markets analyst at brokerage CMC Marketplaces in Sydney. “So the true probable is if we see surprises on the upside…it could have immediate impression on Euro-U.S. dollar.”
Reporting by Tom Westbrook Modifying by Sam Holmes
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