The dollar and riskier trade-exposed currencies found some support on Friday as fresh hopes for a breakthrough in Sino-U.S. trade talks were tempered with caution.<\/p>\n\n\n\n
White House economic adviser Larry Kudlow said late on Thursday that the two parties were getting close to a deal and the “mood music is pretty good”.<\/p>\n\n\n\n
He offered no new details, but the sentiment was enough to reverse a little of the safe-haven Japanese yen’s overnight gain and to buoy the Australian and New Zealand dollars.<\/p>\n\n\n\n
The yen fell 0.2% to 108.57 per dollar and dropped 0.3% on the rising Aussie<\/a>.<\/p>\n\n\n\n The Australian dollar , which had tumbled on Thursday after an unexpected rise in the national unemployment rate, added 0.2% to $0.6795.<\/p>\n\n\n\n The New Zealand dollar rose 0.1% to $0.6388. China’s yuan rose 0.2% but remained just shy of strengthening past the 7-per-dollar level at 7.0076.<\/p>\n\n\n\n Against a basket of six major currencies (DXY<\/a>) the greenback was steady at 98.140 as caution and the lack of concrete news in Kudlow’s remarks kept a lid on risk appetite.<\/p>\n\n\n\n “It may not be a game-changer,” said Terence Wu, a treasury strategist at OCBC Bank in Singapore. “Thus, we think any reversal in the risk-off trades may not see a good shelf-life.”<\/p>\n\n\n\n Mixed signals on trade negotiations have abounded in recent days while evidence of the damage the dispute is wreaking on the global economy has mounted.<\/p>\n\n\n\n The next scheduled economic updates are Eurozone trade and inflation data due at 1000 GMT and the New York Fed manufacturing survey due at 1330 GMT.<\/p>\n\n\n\n On Thursday, China’s commerce ministry said the two countries are holding “in-depth” discussions, while U.S. President Donald Trump said on Tuesday a deal was close.<\/p>\n\n\n\n But the Financial Times, citing unidentified people close to the talks, said an agreement may not be reached in time to avoid a new round of U.S. tariffs taking effect on Dec. 15.<\/p>\n\n\n\n Sub-par growth figures on Thursday from China and Japan, followed by lackluster updates in Britain and Europe underlined the potential downside if a deal falters.<\/p>\n\n\n\n Few are game to make a decisive call either way.<\/p>\n\n\n\n “Until we’ve got the word from Donald Trump, no-one’s really willing to get in front of it,” said Jason Wong, senior market strategist at BNZ in Wellington.<\/p>\n\n\n\n The British pound, meanwhile, sat near peaks scaled overnight.<\/p>\n\n\n\n Sterling touched a six-month high against the euro and gained on the dollar as expectations that Britain’s ruling Conservative Party might win a majority in a Dec. 12 election fueled optimism the Brexit impasse will finally end.<\/p>\n\n\n\n The pound stood at $1.2880 and at 0.8559 pence per euro in Asian trade. “Markets now appear to be priced for a high likelihood of a majority Conservative government,” RBC Chief Currency Strategist Adam Cole said in a note.<\/p>\n","protected":false},"excerpt":{"rendered":" The dollar and riskier trade-exposed currencies found some support on Friday as fresh hopes for a breakthrough in Sino-U.S. trade talks were tempered with caution. White House economic adviser Larry Kudlow said late on Thursday that the two parties were getting close to a deal and the “mood music is Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1858","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/comments?post=1858"}],"version-history":[{"count":1,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1858\/revisions"}],"predecessor-version":[{"id":1859,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/1858\/revisions\/1859"}],"wp:attachment":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/media?parent=1858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/categories?post=1858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/tags?post=1858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}