Dollar Pressured as Headline Fatigue Sets in from Trade Talks Uncertainties

Dollar Pressured as Headline Fatigue Sets in from Trade Talks Uncertainties

The dollar tumbled down when President Trump announced that the trade deal may have to wait till November 2020 when the US elections will hold.

Weeks ago, the President had earlier announced that he and China are in “the final throes” of an agreement in the trade talks which had pushed up demand for the dollar and undermined the safe-havens.

Given increased fronts in trade wars, when President Trump announced increasing tariffs for metal exports from Brazil and Argentina while doubling tariffs for French goods by a hundred percent, it seemed as if investors have become wearied by the dilly-dallying created by the trade headlines.

The US had also passed two bills to support human rights and cease exports of certain ammunitions to Hong Kong police and also a third which had reportedly caused anger in China, the Uighur crackdown bill, all these are seen by investors as impediments which may stall the progress of the trade talks.

An analyst noted that with the trade talk uncertainties, it is very hard to predict the movement of the dollar as China had not given any reassurance from its end.

Due out on Friday is non-farm payroll figures which analysts predict may be conformable to earlier economic stats released which were unfavorable.

The dollar was marginally weaker against the euro to trade at $1.1084, standing at – 0.1%.

In its other currency pairs, the greenback traded at 97.551.

British Pound
UK geopolitics seemed favorable to British Pound as most polls pointed to a conservatives win. Because of this, the pound edged higher to hit an eight-month high in the early hours of the day.

AUD, CAD and Kiwi Dollar
On the other hand, the Australian dollar fell 0.2% to trade at $ 0.6838 after the release of retail sales figures.

The kiwi rose 0.4% to trade at $ 0.6555, hitting a four-month high and consolidating gains this week given favorable trade sentiment.

NZD reached a four-month high of NZD 1.0457 per Australian dollar with a 3% gain in the market.

The Canadian dollar reached a one-month high to trade at $ 1.3203 per dollar after the apex bank decided to hold rates steady as it sees support for the economy.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.