Investing.com – The currency markets started slowly Monday, the trading remains moderate because of the timing of a data bit dense in Europe and holidays in North America.
The dollar has declined slightly over the course of the weekend, in the hope that the United States and China will find a way to defuse their trade war. These hopes have been the main driver of a rise in asian stock markets, the indices Nikkei 225 and Hang Seng both advanced more than 1.5%, while the shares on mainland China have continued to increase.
The prices of commodities have also increased during the night, the crude reaching its highest level since November.
Representatives of China and the United States should continue negotiations this week in Washington, DC.
To 03: 00 (08: 00 am GMT), the dollar index was at 96,71, down almost 0.5% against the new all-time high of 2019 that he had reached last week. It was supported by the rise in the dollar against the yen, the currency of financing the cheapest in the world who have suffered the most. The pair USD / JPY has reached 110,61.
The euro was back above 1.13 USD, up nearly half a cent compared to the low reached on Friday, when its representative on the board of directors of the european central Bank, Benoit Co said that the slowdown in the euro zone economy had been deeper and wider than what the ECB had initially thought.
Marc Ostwald, global strategist and chief economist at ADM ISI in London, said in a note to clients that markets are in equilibrium between “the positive aspect of the central banks to step away from the tightening policies, or reinforcing”, given the slowdown of the growth prospects, the risk of continuation of financial repression, and the burden of negative interest rates and the premium credit.
The british pound was lower against the dollar but remained robust against the euro after the ESMA, the authority of regulation of EU securities, has announced that it would issue temporary licenses to clearing houses based in the Uk in event of Brexit “without agreement”. This means that customers based in the EU would ever be able to clear transactions through London in the short term, reducing the risk of financial volatility. The Cable was 1,2902 $.