Dollar Trims Weekly Advance as US-China Talks Eyed
The dollar weakened against nearly all of its peers in the Group of 10 Friday, curtailing its weekly advance. The Canadian loonie was the worst performer among peers as the country’s domestic unemployment rate soared. Investors are now turning toward weekend talks between the US and China.
The Bloomberg Dollar Spot index drops 0.4% on Friday
US President Donald Trump floated an 80% tariff on China ahead of negotiations as he urged Beijing to do more to open its markets to US goods.
Federal Reserve Governor Adriana Kugler said policymakers should hold interest rates steady for now, pointing to a stable US economy and uncertainty around tariff policy.
UR/USD rose 0.5% to 1.1286; it’s down a third week, the longest losing streak since early January
The ECB should cut its interest rate next month if new forecasts confirm a disinflationary outlook and waning growth momentum, according to Governing Council member Olli Rehn.
The cost of betting on gains against the dollar over the next year is now higher than wagers over the next month, the first time that’s happened in three years.
GBP/USD traded 0.5% higher at 1.3310.
BOE Governor Andrew Bailey said that a bigger interest rate cut would have been out of proportion.
USD/JPY falls 0.7% to 144.90.
US Commerce Secretary Howard Lutnick said that trade deals with South Korea and Japan could take significantly more time to complete than the framework agreement President Donald Trump announced Thursday with the UK.
Source: Bloomberg
