Forex – dollar leaps after the expansion in trade talks

© Reuters. – The greenback has surged Tuesday as the United States and China are planning to extend the trade talks until Wednesday.

The representatives of the two countries meet in Beijing, and the talks will continue until the third day. They have more hope that the two largest economies in the world are able to resolve their disputes before the 1st of march.

Steven Winberg, assistant secretary for fossil energy at the u.s. department of energy, has confirmed the extension to the journalists of the american delegation.

“I confirm that we will continue the talks tomorrow, yes,” said Winberg to journalists, refusing to answer other questions.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.3% to 95,55 to 10h29 ET (15h29 GMT). The dollar rose against the yen, with USD / JPY up 0.05% to 108.73.

Investors also await a speech from Trump at 21: 00, Paris time (2: 00 GMT Wednesday), where he is expected to speak on the closure of the government and the construction of a wall on the mexican border. Trump has stated that he would not sign the budget if it did not include the funding of a wall, which led to an impasse with the Congress.

At the same time, the unexpected drop in German industrial output has raised the fear of a growth slowdown in the euro area and could obstruct the plans of the european central Bank to divert the stimulus programs. The EUR / USD declined 0.34% to 1,1433. The british pound lost 0.4 per cent because of the constant pressure on the Brexit, the vote in favour of a withdrawal agreement before the Parliament next week, with the GBP / USD 1,2720.

The AUD / USD fell 0.3% to 0,7127, while the NZD / USD fell 0.5% to 0,6713 and the USD / CAD was steady at 1,3295.

– Reuters contributed to this report.

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