The American dollar opened high this Monday as the US agreed to lower tariffs. The US Dollar Index traded 98.175 and inched down by only 0.03%.
US Donald Trump denied reports of a rollback on tariffs last weekend, casting global doubts about their trade agreement. However, he also said negotiations were “moving along very nicely.”
Investors pay close attention to this week’s events, gauging the effects of US-China’s trade wars on the global economy.
USD/CNY rose by 0.17% at ¥7.0074, while it stood at ¥109.23 against the Japanese safe-haven. Japan’s central bank will release its Q3 growth data this week.
The Australian dollar, on the other hand, rose almost at a two-week peak at $0.6857. The National Australia Bank confidence index is due on Tuesday, and the AU’s latest employment rate report is on Thursday.
The Kiwi gained 0.3% against the US dollar to $0.685. Investors await the Reserve Bank of New Zealand’s interest rate decision later this week.
Meanwhile, the British economy is still losing momentum from its slow exit from the European Union. GBP reached a 1.2773 low against the greenback.
The American Central Bank President’s First Testimony
Investors await Fed President, Jerome Powell’s, report before the Joint Economic Committee on Wednesday and Thursday.
Reports claim he will talk about interest rate cuts and how the trade tensions are affecting the American economy.
Powell will testify before the US Congress after the Labor Department will release October consumer-pride index. He is set to speak to the House Budget Committee the following day.
Year-on-year CPI is expected at 2.4% and headline at 1.7%, but core personal consumption expenditures run around 1.6%. Before the financial crisis brought by the American Chinese trade war, the Fed’s target was 2%.
This will be his first time testifying before the committee due to former President George H.W. Bush’s death last year.