Dollar in Doldrums as Trade-Sensitive Currencies Soar By

© Reuters. – The dollar fell against its rivals Monday as trade-sensitive currencies rallied on the back of the temporary U.S.-China trade truce, while mixed U.S. economic data also weighed.

The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.36% to 96.90.

for November showed an uptick to a reading of 59.3, beating expectations for 57.6. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the U.S. economy.

unexpectedly fell 0.1%, undershooting economists’ forecast for a 0.4% increase.

The duo of reports did little to help the dollar mount a recovery as traders fled the greenback in favor of risk-sensitive currencies on easing U.S.-China trade worries after both parties agreed to 90-day truce.

, often viewed as a barometer of broader risk sentiment as well as a proxy for China-related risks as China is the largest buyer of Australia’s key exports, rose 0.73% to $0.7358.

Signs of easing tensions between China and the U.S. is “certainly a big step in the right direction,” said Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers.

Elsewhere the dollar was also held back by a rise in the euro amid better-than-expected eurozone manufacturing data.

The pound, meanwhile, struggledto tack on gains against the greenback as Brexit angst continued to weigh, with analysts cutting their estimates on a rebound in sterling in the event that Brexit is resolved.

TD Securities forecasts that sterling’s rise would be limited to 5% after “the overhang of Brexit uncertainty” is removed, compared with previous estimates of “closer to double this amount,” citing “Brexit fatigue” and the prospect of more uncertainty should new UK elections follow.

fell 0.12% to $1.2734.

rose 0.10% to Y113.68.

fell 0.76% to C$1.3194 as the loonie received a boost from a rally in oil prices following the U.S.-China trade truce and reports the Canadian province of Alberta would force producers to cut output by 325,000 barrels per day in a bid to ease a crude storage build-up amid a pipeline bottleneck.

— Reuters contributed to this report.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply