Plus   Neg

Dollar Trading Mixed At The Start Of The Week


The dollar is turning in a mixed performance against its major rivals Monday afternoon, but remains little changed overall. The lack of U.S. economic data is keeping some investors on the sidelines at the start of the new trading week.

Trading activity remains somewhat subdued, however, with traders looking ahead to a meeting between President Donald Trump and Chinese President Xi Jinping later this week.

Trump and Xi are due to meet at the G20 summit in Buenos Aires, Argentina, beginning on Friday, with traders likely to keep a close on eye out for signs of progress on a potential trade deal.

Rome is willing to make compromises on its deficit target for 2019 lifted up investor sentiment at the start of trading week.

Media reports showed that Italian government is mulling a deficit reduction of up to 2 percent of gross domestic product from the draft budget goal of 2.4 percent of GDP.

The dollar dropped to an early low of $1.1383 against the Euro Monday, but has since rebounded to around $1.1330.

German business confidence eased for a third consecutive month in November as the economy is "cooling down", results of the survey by the Ifo Institute showed on Monday. The Ifo business confidence indicator fell to 102 from 102.9 in October, which was revised from 102.8. Economists had expected a reading of 102.3.

EU leaders backed U.K.'s Brexit withdrawal agreement and political declaration that sets up the frame work of the future trade relationship.

The President of the European Commission Jean-Claude Juncker said the deal was "the best deal possible" and that the EU would not change its "fundamental position."

The buck fell to a low of $1.2864 against the pound sterling Monday morning, but has since bounced back to around $1.2815.

Mortgage approvals for house purchase in the UK rose in October to its highest level in five months, figures from the UK Finance showed on Monday. The number of mortgage approvals for house purchase climbed to 45,289 from 37,348 in September. The figure was the highest since June, when approvals were 47,175.

The greenback has climbed to around Y114 against the Japanese Yen Monday afternoon, from an early low of Y112.845.

The manufacturing sector in Japan continued to expand in November, albeit at a slower pace, the latest survey from Nikkei showed on Monday with a preliminary manufacturing PMI score of 51.8. That's down from the six-month high score of 52.9 in October, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

Japan's leading index in September eased less than initially estimated after rising in the previous month, revised data from the Cabinet Office showed on Wednesday. The composite leading index dropped to 104.3 from 104.5 in August. The initial reading for September was 103.9, which equaled July's score.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT