US and China Trade Talks Improving?
Thursday 1 January, 1970
Daily Currency UpdateUSD - United States DollarCurrency movements overall were reasonably modest on Monday ahead of major central bank policy decisions next week. The U.S. Federal Reverse is expected to cut interest rates at next week’s policy meeting at the end of July by 25 basis points and make another cut in September. The European Central Bank (ECB) also holds a meeting next week, with investors expecting a dovish statement. Money markets have priced in an ECB rate cut of 10 basis points in September and another one in March. The ECB’s meeting on July 25 may reinforce those expectations. China and U.S. Trade tensions find some hope as Treasury Secretary Steven Mnuchin said phone conventions this week are going well. A trip to China is maybe imminent.
Key MoversThe British pound fell back towards six-month lows against the Greenback on Monday after a run of weak economic data and continued Brexit concerns. Looking ahead today in the U.K., and we will release their latest employment data. The ILO unemployment rate for the three months to May is expected to remain steady at 3.8%. The number of unemployed people is expected to have decreased to 18.9K in June from 23.2K in the previous month.
- EUR/USD: 1.1207 - 1.1263 ▼
- AUD/USD: 0.7016 - 0.7044 ▼
- USD/CAD: 1.3022 - 1.3064 ▲
- NZD/USD: 0.6700 - 0.6738 ▼