Greenback Weak As Focus Switches From The Trade War
Greenback declined for 5th straight day after risk of the US-China trade war became less pressing. Instead, investors are now focused on U.S.-Canada NAFTA negotiation. Versus its main rivals, dollar closed at its monthly minimum at 94.52.
An FX strategist at Credit Agricole in London, Manuel Oliveri told: "Despite volatile overnight markets in Asia, risk appetite in currencies is broadly on the mend as trade war concerns seem to be receding, which should pressure the dollar lower". Head of markets research at JPMorgan Chase Bank in Tokyo, Tohru Sasaki noted: "As investors' focus shifted to the NAFTA and Brexit negotiations, the dollar didn't get much of a boost from weak emerging market currencies".
Pound, on the other hand, posted some broad gains on potential Brexit deal. The currency touched $1.30 for the first time since the beginning of this month. Michel Barnier (EU chief negotiator) reported that the European Union is ready to offer a unique partnership with UK. Dominic Raab (Brexit Minister) confirmed that EU-UK Brexit deal is near at hand.
Meanwhile, the single currency remained strong versus dollar above $1.17. Kiwi dropped 1% to $0.6645 on disappointing business confidence data. The offshore Chinese yuan was down 0.3% to 6.8430 per dollar.