Currencies mark time before trade deal; UK data eyed

SHARE:

By Saikat Chatterjee

LONDON (Reuters) - Major currencies were closeted within tight ranges on Wednesday as investors awaited the signing of a U.S.-China trade deal, with the greenback holding above a one-week low against its rivals.

Though the formal agreement, due in early U.S. hours, is aimed at drawing a line under 18 months of tit-for-tat tariff hikes that have hurt global growth, it will not end the trade dispute between the world's two largest economies.

"I don't think the market is fully convinced about a closure on the trade conflict front as the issue has caused a lot of damage to the world economy," said Neil Mellor, a senior FX strategist at BNY Mellon in London.

U.S. Treasury Secretary Steven Mnuchin said existing tariffs on Chinese goods would stay, pending further talks.

Against a basket of its rivals (DXY), the dollar was steady at 97.4, just shy of a one-week low of 97.29. The Chinese currency in the offshore market was broadly steady.

The Australian dollar , a relatively volatile barometer of trade tensions, was a shade weaker at $0.6893.

U.S. President Donald Trump is slated to sign the Phase 1 trade agreement with Chinese Vice Premier Liu He at the White House at 1630 GMT.

Washington has already agreed to suspend tariffs on $160 billion of some Chinese-made electronics, and to halve existing tariffs on $120 billion of other goods to 7.5%.

But it will leave in place 25% tariffs on a vast, $250 billion array of Chinese industrial goods and components used by U.S. manufacturers.

A source told Reuters that China has pledged to buy almost $80 billion of additional manufactured goods from the United States over the next two years under the deal, although some U.S. trade experts called that unrealistic.

Elsewhere, the British pound was broadly steady at $1.3014 after sustaining some losses in recent sessions thanks to a chorus of dovish comments from central bank policymakers.

The only major data in the European session is U.K. price data due at 0930 GMT where inflation is expected to grow 1.5% in December from a year-ago period.

Original Article

COMMENTS

Name

Commodities,3759,Economic Indicators,2584,Economy,8405,Forex,2173,Politics,3054,Sports,8983,Stock Markets,16854,Tech,4457,World News,2244,
ltr
item
Business, Financial News and U.S, International Breaking News and more | ReutersHerald: Currencies mark time before trade deal; UK data eyed
Currencies mark time before trade deal; UK data eyed
https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEG0E0C5_L.jpg
Business, Financial News and U.S, International Breaking News and more | ReutersHerald
http://www.reutersherald.com/2020/01/currencies-mark-time-before-trade-deal.html
http://www.reutersherald.com/
http://www.reutersherald.com/
http://www.reutersherald.com/2020/01/currencies-mark-time-before-trade-deal.html
true
7847844249671807439
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy