⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Forex - Dollar Holds Steady on Trade Hopes, But Growth Fears Weigh

Published 24/09/2019, 07:59
© Reuters.
EUR/USD
-
GBP/USD
-
USD/JPY
-
AUD/USD
-
NZD/USD
-
DX
-

Investing.com - The U.S. dollar remained broadly supported on Tuesday after U.S. Treasury Secretary Steven Mnuchin confirmed U.S.-China trade talks will resume next month, but concerns about slowing global growth continued to weigh on market sentiment.

Against a basket of currencies the dollar edged up to 98.28 by 2:37 AM ET (6:37GMT).

"The U.S. dollar is rising by default rather than anything U.S.-specific," said Michael McCarthy, chief market strategist at CMC Markets in Sydney, adding that volumes were low as traders mostly kept to the sidelines waiting for news.

"Trade is never far from the markets' radar, but I think currency markets are increasingly expecting (U.S-China tensions) to be protracted, I think optimism has dissipated."

Mnuchin said Monday that trade discussions were scheduled in two weeks and that he and U.S. Trade Representative Robert Lighthizer would meet Chinese Vice Premier Liu He.

The dollar was little changed against the yen at 107.53, while the euro was trading at 1.0992, not far from a 28-month low of 1.0926 touched earlier this month.

The single currency fell 0.2% on Monday after data showing that a German manufacturing recession deepened unexpectedly in September and growth in the service sector lost momentum, adding to worries over the outlook for the wider Eurozone.

The British pound was hovering near one-week lows at 1.2435 ahead of a U.K. Supreme Court ruling on whether Prime Minister Boris Johnson acted unlawfully when he suspended parliament just weeks before Brexit.

The outcome of the case could have implications for Johnson’s plans to pull the U.K. out of the European Union on Oct. 31.

The Australian and New Zealand dollars were steady ahead of a speech by Reserve Bank of Australia Governor Phil Lowe, with the market expecting a dovish tone after weak jobs data last week underlined expectations for a rate cut.

Both currencies sat near three-week lows, with the Aussie at 0.6774 and the kiwi at 0.6295.

"We think Lowe will provide a strong signal that the RBA is ready to cut rates again, endorsing our view for a 25bp cut in October," said Tapas Strickland, a director of economics and markets at National Australia Bank in Sydney.

"Any comments on the scope for unconventional policy will also be critical for the market."

--Reuters contributed to this report

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.