Currencies off to cautious start, China-U.S. trade deal in focus

Currencies off to cautious start, China-U.S. trade deal in focus

18 Nov 2019 09:36 AM
 

Major currencies were off to a cautious start on Monday as market players looked to whether Washington and Beijing can soon sign off on a deal to end their trade war that has been a drag on the global economic growth. Against the yen, the dollar was traded at 108.75 yen, recovering from 108.235 touched on Thursday as rising hopes of a U.S.-China trade deal undercut the yen. The currency faces a resistance around 109.00, where it has its 200-day moving average. A break-through there could open the way for a retest of its five-month high around 109.50 touched earlier this month.

The tariff war between the United States and China has already taken its toll on the world's manufacturing sector. Data from the U.S. Federal Reserve on Friday showed the U.S. manufacturing downturn deepened in October, with output at factories tumbling 0.6%, the most since May 2018, after dropping 0.5% in September.

That helped to push down the dollar index (=USD) to 97.980, near its lowest levels since Nov. 7.

Elsewhere, sterling was extending its slow recovery to reach its highest levels in two weeks, trading at $1.2932, up 0.13% so far on the day.


 

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