It was a positive session for the US dollar yesterday; it appreciated 0.5 percent, acting as a reserve currency due to lousy news elsewhere including Brexit, weak China data, lower oil prices and lingering issues such as the arrest of the daughter of Huawei’s founder.
However, this morning, the US dollar index is falling slightly 0.02 percent in the middle of an improved mood in global markets. The U.S. and China started the latest round of trade talks involving Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer, and Chinese Vice Premier Liu He. The three senior officials discussed Chinese purchases of agricultural products and changes to critical Chinese economic policies.
On the release side, the producer price index ex-food and energy month to month (November) came in at 0.3 percent while the expected number was 0.1 and the PPI year to year came in at 2.7 percent when the read was at 2.5 percent. These numbers will likely give us good insight into consumer price index numbers, which will be published tomorrow.