© Reuters. The dollar is advancing on hopes of a compromise commercial
Investing.com – The dollar rose Thursday in the face of a basket of currencies, in the hope that the United States and China to reach a compromise to overcome the trade tensions growing.
The dollar index, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, rose 0.16% to 89,92 at 02h35 ET (06h35 GMT).
The dollar gained ground against the yen refuge, with the USD / JPY up 0.19% to 106,98, away from the low of the previous session of 105,98
The yen uptrend, which tends to be sought after by investors in times of uncertainty, political or economic, was recovered on Wednesday after the announcement by China of a new wave of tariffs on u.s. imports in retaliation for the administration plan Trump to impose tariffs on the chinese products.
But trade tensions have diminished after the economic adviser to the president, Donald Trump, Larry Kudlow, has stated that the proposed rates for China might not enter into force and added that there is no trade war between the United States and China.
The market sentiment was also helped by the hope that the United States could conclude an agreement with Canada and Mexico the free trade Agreement north american.
Investors have focused their attention on the latest report on the employment of the United States and the comments of the chairman of the federal Reserve, and Jerome Powell, on Friday, which could help determine the direction of the dollar.
The signs of growth of salaries and wages increase could to stress the need for the Fed to raise interest rates at a faster pace. Expectations of higher rates tend to boost the dollar, making the currency more attractive for investors in search of yield.
The euro was slightly weaker against the dollar, with the EUR / USD down 0.11% to 1,2264.
The pound was also slightly lower compared to the u.s. dollar, with GBP / USD edging down 0.1% to 1,4067.
