Thursday, November 21, 2019

Forex - U.S. Dollar Little Changed; Hopes for Phase One Trade Deal Recedes

© Reuters.  © Reuters. - The U.S. dollar was little changed on Tuesday in Asia as traders await clarity on the Sino-U.S. trade developments.

Citing a government source, CNBC reported that China is pessimistic about a trade deal and found U.S. President Donald Trump’s comment that he did not agree on cancelling tariffs troubling.

Markets preciously expected the deal to be signed in the near future as Chinese Commerce Ministry spokesperson Gao Feng said earlier this month that China and the U.S. had reached an agreement on the tariff rollback, while White House Economic Advisor Larry Kudlow said on Friday that the two sides were close to a deal.

The U.S. Dollar Index last traded at 97.675 by 11:44 PM ET (03:44 GMT), up 0.01%.

The USD/CNY pair was near flat at 7.0254. On Monday, the People’s Bank of China slashed the interest rate on its seven-day reverse repurchase agreements for the first time since October 2015

The GBP/USD pair was little changed at 1.2954, after rising 0.4% earlier in the session on news that all Conservative Party candidates at the Dec. 12 election have pledged to back Prime Minister Boris Johson’s Brexit deal.

The AUD/USD pair dropped 0.1% to 0.6797 after minutes from the latest Reserve Bank of Australia policy meeting showed the central bank considered cutting rates this month.

“The Board agreed that a case could be made to ease monetary policy at this meeting, but that the most appropriate approach would be to maintain the current stance of monetary policy and to make another full assessment once more evidence of the effects of the earlier monetary easing had become available,” the minutes said.

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