Dollar Down as Investors Focus on US-China Talk
An index of the dollar fell as investors look toward trade talks between the US and China, with Bejing’s approval of some export of rare earths helping to ease tensions.
The Bloomberg Dollar Spot Index fell 0.2% in Asia trading
Beijing says it granted approval to some applications for the export of rare earths, a move that could ease tensions before trade negotiations between the US and China
Top trade negotiators from the US and China are set to hold fresh talks in London on Monday, offering a glimmer of hope that the world’s two largest economies can defuse tensions over Chinese dominance in rare-earth minerals
Chinese exports rose less than expected last month as the worst drop in shipments to the US in more than five years counteracted strong demand from other markets
Tentative improvement on US-China trade relations is a positive start, and may already have been factored into the price action, said Christopher Wong, a senior foreign exchange strategist at Oversea-Chinese Banking Corp.
May see some broad consolidation for now, but there’s slight risk for USD upside
The development in LA should see little implication for the market now, unless situation worsens further
EUR/USD rose 0.2% to 1.1419
GBP/USD rose 0.2% to 1.3555
Bank of England rate-setters risk underestimating the strength of the UK economy by placing too much faith in downbeat business surveys over official growth data
AUD/USD rose 0.4% to 0.6515; Australian financial market closed on holiday
NZD/USD gained 0.4% to 0.6036
USD/JPY fell 0.3% to 144.37
Japanese investors sold the largest amount of German sovereign bonds in a decade in April, the Asian nation’s latest balance-of-payments data show on Monday
Japan’s economy contracted in the first quarter, a revised estimate confirmed Monday, weakness that supports the Bank of Japan’s cautious stance and keeps political pressure on Prime Minister Shigeru Ishiba ahead of a key election
Source : Bloomberg
