Dollar Erases Gain as Banks Report, Powell in Focus
A Bloomberg gauge of the dollar erased gains ahead of remarks from Federal Reserve Chair Jerome Powell and as Wall Street’s largest banks begin to report quarterly earnings, with JPMorgan chief Jamie Dimon warning of a softening in the US economy. Renewed trade tensions between the US and China supported the haven yen and Swiss franc.
The Bloomberg Dollar Spot Index is little changed after rising in London session
China vowed to “fight to the end” in a tariff and trade war, while acknowledging that the door for negotiation is open, according to a statement from the Ministry of Commerce.
Beijing also imposed curbs on the American units of Hanwha Ocean Co., one of South Korea’s biggest shipbuilders, as it targets US measures against the Chinese shipping sector.
USD/JPY falls 0.2% to 151.98; USD/CHF down 0.2% to 0.8026 as US-China trade fears boost havens and weigh on high-beta FX.
One-week risk reversals on dollar-yen rise to 77bps, puts over calls, the most in a month.
AUD/USD down 0.5% to 0.6481 after Monday’s 0.6% rise.
EUR/USD gains 0.2% to 1.1569; data showed investor optimism in Germany’s economy improved in September.
French Prime Minister Sebastien Lecornu said he would propose suspending application of the country’s pension reform, sacrificing one of President Emmanuel Macron’s key economic measures in an endgame bid for political stability.
Cable down by 0.6% to GBP/USD 1.3249, lowest since Aug. 1, before paring drop.
Pair fell and gilts jumped after UK jobs data prompted traders to add to wagers on Bank of England interest-rate cuts.
Source : Bloomberg.com
