The yuan and the dollar fall as the roller coaster of the trade agreement continues
The yuan and the dollar fall as the roller coaster of the trade agreement continues
The Chinese Yuan and the US dollar descend on Monday as the roller coaster ride of the trade agreement continues.
The dollar index, which follows the evolution of this currency with respect to a basket of six other major currencies, drops 0.1% to 96,655 at 5:40 hours (CET).
The USD/CNY pair gains 0.2% to the level of 6.9979. In an interview for CBS News on Sunday, US trade representative Robert Lighthizer said phase one of the trade agreement between the United States and China is “totally ready.”
Under the agreement, the president of the United States, Donald Trump, promises not to implement the new batch of tariffs that entered into force on Sunday. In return, Beijing has said it will significantly increase purchases of agricultural products, although it did not specify how much.
While Trump has said on Twitter that the “phase two” business talks would begin immediately, Beijing has made it clear that the move to the next stage of the trade negotiations would depend on the implementation of the first phase.
Lighthizer has also said that there is no set agenda for the next phase of the talks.
Meanwhile, investors will pay attention to the observations of several Fed officials in the coming days after the Fed decided to keep interest rates unchanged last week.
Dallas Fed President Robert Kaplan, the president of the New York Fed, Williams (NYSE: WMB) and Eric Rosengren of the Boston Fed, will appear Tuesday, while the president of the Chicago Fed, Charles Evans, they will a day later.
Fed Chairman Jerome Powell has said that the banks’ view of the economy remains favorable.
As for the publication of data, updates on industrial production, housing, consumer confidence and personal income and expenses of the United States will be known this week.
In China, industrial production and retail sales data exceeded expectations, suggesting that the economy may be stabilizing.
The GBP / USD rises 0.5% to the 1,3386 level following a crushing victory from the Conservative Party of British Prime Minister Boris Johnson last week.
The EUR / USD advances 0.1% to 1.1130.
Meanwhile, the AUD / USD and NZD / USD pairs are both left 0.1%.
