The United States Dollar is weaker across the board over the past 24 hours with the US Dollar Index falling 0.4% against a basket of currencies. The big headline came out of Europe this time with conciliatory comments from President Trump after his press conference with EU President Juncker. In China, the media continues to report on further, targeted measures by the PBOC on capital requirements for banks. Ultimately, the improved global conditions saw capital return to risky assets and the Greenbacks counterparties marginally rise against the Dollar.
Ahead of their much-anticipated meeting on trade, President Trump held a joint press conference with President Juncker saying “we expect something very positive” to come of the meeting. Despite the lack of real information, the market reacted positively to the initial press conference on the hope of reconciliation. The Euro in-particular accelerated northward with the Great British Pound also finding its feet to near weekly highs. Nevertheless, auto tariffs remain a point of contention with reports of both sides considering tariff options. In Asia, the other target of US trade aggression China, looks to further ease policy measures to encourage growth with the latest announcement from the PBOC. The PBOC was reported to have eased counter-cyclical capital requirements for banks in an attempt to boost lending. The positive moves by China to encourage growth had a significant impact on commodity currencies with the Aussie in-particular pushing two-week highs.
In the day ahead, market focus will continue to likely be on the Trump-Juncker trade discussions.