Euro Gains Ground on US Dollar's Weakness
The euro strengthens versus US dollar at the beginning of the week. The EUR/USD pair is trading at 1.1347, having added 0.25% on the day. The US dollar weakened broadly, after US and China pulled back from escalating their trade war, dampening safe haven demand for the US currency.
According to announcements that followed the meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 summit in Argentina, the two sides agreed to keep their trade war from escalating with a promise to halt the imposition of new tariffs for 90 days. The US promised to refrain from raising tariffs on $200 billion of Chinese goods from a current 10% to punitive levels of 25% as planned on January 1.
Business activity in the Eurozone manufacturing sector slowed in November. IHS Markit's final manufacturing Purchasing Managers' Index (PMI) fell to 51.8 in November from 52.0 in October. That was the lowest level since August 2016.