The u.s. dollar remained stable on Monday. The development of trade between the United States and China and the apparitions of the president of the federal Reserve board, Jerome Powell, this week should be at the centre of concerns.
The dollar index, which tracks the greenback against a basket of other currencies were 98,175 at 10: 30, down 0.03%.
Over the weekend, the us president, Donald Trump has denied that Beijing and Washington have agreed to remove some tariffs on their products, creating new doubts about the time the two largest economies in the world could put an end to a trade war of 16 months which has slowed global growth.
However, Trump said that the negotiations were progressing “very well” and that “a lot of positive things were happening”. The president must give a speech at the Economic Club of New York on Tuesday.
At the same time, Powell must testify on the economy before legislators in Washington on Wednesday and Thursday and is expected to reiterate that the plans for a new easing are now in abeyance after the reduction of the Fed rate last month for the third time in as many meetings.
On the front of the data, a new series of u.s. economic data will be monitored closely at a time when markets are trying to measure the impact of the trade conflict over growth prospects.
Wednesday will be the opportunity to observe the index of consumer prices for October. The CPI core year-over-year is expected to be 2.4% and 1.7%. However, the measure preferred by the Fed, the personal consumption expenditures core runs at around 1.6% – it is below the target of 2% since the financial crisis.
The pair USD / JPY has lost 0.2%, as safe-haven has increased in the face of declining shares today. Japan will publish its data growth in the third quarter this week.