The u.s. dollar has slightly retreated against a basket of rivals on Thursday as the conflicting messages of the american president Donald Trump tempéraient hopes that China and the United States would come to an agreement to end their long war commercial.
Trump said Wednesday that trade talks with China were taking place “very good”, which seems to be more positive than on Tuesday, when he said that a trade agreement may have to wait until after the u.s. presidential election of 2020.
His comments on Tuesday that pointed to the prospect of a long extension of the trade war between the two biggest economies in the world, have affected market sentiment.
The markets have rebounded Wednesday when Bloomberg announced that the two parties are coming closer to an agreement.
“I thought that the markets had ceased to play ping-pong in the trade, but this is obviously not the case,” said Ray Attrill, strategist-in-chief of foreign exchange at National Australia Bank. “A new day, a new reversal of what happened the day before.”
If Beijing and Washington fail to reach an agreement quickly, the next important date is the 15th of December, the date on which the United States should impose more tariffs on the chinese products.
The movements in the major currencies have been mitigated. The japanese yen shelter was a stable 108,92 for a dollar at 12: 30 pm, while the swiss franc grew slightly to 0,9889 for a dollar.
The euro rose slightly against the dollar to 1.1092, which pushed the dollar index down 0.1%.
In the euro zone, data showed that orders to German factories fell unexpectedly in October, indicating that the manufacturing sector of the largest economy of the block just to get out of a collapse of more than a year.
The pound sterling has touched new heights of eight months, supported by expectations that the Prime minister, Boris Johnson would get the majority in next week’s elections, paving the way for the exit of the Uk from the European Union on 31 January.
Currency traders are now turning to the report on non-farm employment in the United States which must be published Friday to determine the extent to which the american economy is holding up in the face of a global slowdown.
–Reuters contributed to this report