Not much changed in the international exchange market since Tuesday. The indicator of the dollar, which measures the greenback against the basket of currencies, rose 0.1% to 97.417.
The yuan crossed the 6.0 per dollar mark, hitting a new 5-1/2 high of 6.8944.
The Taiwanese dollar rose to its most active state in more than 18 months. The re-election of President Tsai Ing-wen over the weekend took place. Thus, it removed some uncertainty.
The China-U.S. phase-one agreement is going to be signed today at the White House. Thus, It will be a positive first step to end the damage of an 18-month trade dispute between the world’s largest two economies.
The yuan against the United States dollar is 0.3% higher.
The worries referring to the economic damage of Australia’s ongoing bushfires hurt the Australian dollar. Nevertheless, two days ago, it rose 0.3%, hitting a one week high of $0.6919.
Dollar and other News
Fears are receding about ongoing tensions centered on Iran. The mood of investors improved. Nevertheless, the direction of the dollar or euro has not changed course much.
The pound fell against the euro to 85.62 pence. Against the dollar, the British currency fell to as low as $1.2995.
The euro/dollar continue to tread water at $1/1125.
The pound shed 0.6% in early trading. The Bank of England policymaker is Gertjan Vlieghe. On Sunday, he said that he thinks there will be an interest rate cut this month unless the economic data significantly improves.
Data on GDP growth and industrial production in November for Britain was released at 0930GMT and will be sifted through.
Data shows speculators have moved into a net long position on the pound. Moreover, there is a stark contrast from the massive short position they held a few months ago.
Kit Juckes is an Analyst at Societe Generale. The pound’s vulnerability would be fully exposed if this week’s data is soft.
- Trading Instrument