The u.s. dollar remained broadly supported Tuesday after the us Treasury secretary, Steven Mnuchin, has confirmed that the trade negotiations us-china would resume the next month, but the concerns about the slowdown of global growth have continued to weigh on the morale of the markets.
Against a basket of currencies, the dollar has reached 98,28 at 11.10 am.
“The u.s. dollar goes up by default rather than by relation to all that is specific to the United States,” said Michael McCarthy, a strategist-in-chief of markets at CMC Markets in Sydney, adding that volumes were low, traders generally remaining on the sidelines in the expectation information.
“The trade is never far from the radar of the markets, but I think that the currency markets expect more and more that the tension (the tensions of american-chinese) extend, I think that optimism dissipated.”
Mnuchin announced on Monday that trade talks were planned in two weeks and that he and the american representative of the Trade, Robert Lighthizer, to meet the chinese vice Premier Liu He.
The dollar was little changed against the yen at 107,69, while the euro was trading at 1,0995, which is not far from a low of 28 months 1.0926 reached earlier this month.
The single currency fell 0.2% on Monday, after data showed that the recession in the German manufacturing sector had increased unexpectedly in September and that the growth in the services sector had lost momentum, compounding the concern over the prospects of the euro area more generally.
The british pound hovered near its lowest in a week to 1,2435 before the decision of the Supreme Court of the United Kingdom, to determine if the Prime minister and Boris Johnson had acted illegally when he suspended the Parliament only a few weeks before the Brexit.
The outcome of this case could have consequences on the projects Johnson to get out of the United Kingdom of the European Union on 31 October.
The dollars of australia and new zealand have been stable before the speech of the governor of the Australian Central Bank, Phil Lowe, is expecting a dovish tone after the weak data on the jobs of the last week have reinforced expectations of a rate reduction.
The two currencies were close to the lowest in three weeks, the aussie to 0,6782 and the kiwi to 0,6297.
“We believe that Lowe’s will clearly state that the RBA is prepared to cut rates even, agreeing with our point of view to a reduction of 25 basis points in October,” said Tapas Strickland, director of economics and markets at National Australia Bank in Sydney.
“All comments on the scope of the policy on non-conventional will also be crucial for the market.”
–Reuters contributed to this report
