Giroud winner puts Chelsea in Champions League knockout stages    Douglas Stuart hopes Booker win helps working-class writers    An advisory chamber    Golden opportunities    Coronavirus boosts e-payments    GERD: A point of order?    Leapfrogging the transport network    Out of Africa    Steps towards Pan-Africanism    Keeping up with Covid-19    Ready to rumble    The Egyptian Oedipus    In their footsteps    Turkish court adds new Saudi defendants in Khashoggi trial    Sarwa Capital participates in The Egypt Entrepreneurship Summit in Aswan    Cairo International Book Fair suspended for five months over coronavirus concerns    Egyptian Exchange leads COMESA in attracting foreign investments    Orascom-Mitsubishi consortium signs $800m contract for Cairo Metro Line 4    Japan can host Olympics despite virus spike: Tokyo governor    Ethiopia says 'large number' of Tigrayan fighters surrender    Biden transition gets govt OK after Trump out of options    AstraZeneca novel COVID-19 vaccine can be 90% effective, results show    Polling stations open at home for 1st stage of Egyptian parliamentary run-offs    Egypt confirms 358 new coronavirus cases, 14 deaths on Saturday    G20 to discuss post-pandemic world, back debt relief    US will reduce number of its troop in Iraq, Afghanistan    Asia forms world's biggest trade bloc, a China-backed group excluding U.S    Egypt unveils largest archaeological discovery in 2020 with over 100 intact sarcophagi    Palestinians mourn the loss their longtime spokesman, Saeb Erekat    Trump says won't blame Egypt for being ‘upset' over GERD dispute with Ethiopia    1st stage of Egypt's parliamentary elections kicks off on Saturday    Global Finance: Egypt's Tarek Amer among the world's top 20 central bank governors    Legend footballer Lionel Messi says he is forced to stay with Barcelona    Egypt, Ethiopia, Sudan to resume Nile dam talks today    Iraqi conglomerate eyes developing land that housed Mubarak-era ruling party HQ    Legend Messi officially wants to leave Barcelona, hands transfer request    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Zaha speaks out after online racial abuse    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Dollar prices steady as trade deal hopes fade, pound soft
Published in Amwal Al Ghad on 09 - 10 - 2019

Dollar prices steadied on Wednesday as hopes for a breakthrough in U.S-China trade talks waned, sending investors into less risky assets, while the pound wallowed near a month low on deepening uncertainty over Brexit.
The U.S. imposition of visa restrictions on Chinese officials, and the blacklisting of Chinese firms, over the treatment of Muslim minorities have cast a pall over trade discussions scheduled in Washington for the rest of the week.
The resulting risk aversion had bolstered the dollar overnight, which is seen as a safe-haven owing to its position as a global reserve currency.
It mostly held those gains in Asian hours, though trade was wobbly as investors also grappled with remarks overnight from Federal Reserve chairman Jerome Powell flagging further rate cuts and bond buying.
The greenback rose slightly to 107.14 Japanese yen and was steady at $1.0962 on the euro. It was flat around 99.093 against a basket of major currencies.
"The timing of the U.S. travel bans and company blacklists associated with human rights issues have not helped to maintain a positive backdrop to these trade negotiations," said Rob Carnell, ING's chief economist for Asia-Pacific.
"They also look likely to provoke some retaliation from China, just a day before Vice Premier Liu He is due to arrive in Washington for trade talks," he said.
Liu and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are due to meet on Thursday.
A Chinese diplomat told Reuters that China wanted a deal.
But prospects for progress appear to be dimming as the dispute widens.
On top of the visa restrictions and corporate blacklistings, the Trump administration is also moving ahead with discussions around restrictions on capital flows into China, Bloomberg reported, citing people familiar with the matter.
"The tensions will persist through to the year-end at least," said Westpac analyst Imre Speizer in Auckland, who is not expecting the talks to deliver a breakthrough deal.
"It'll be volatile good news, bad news, repeat for the rest of the year, but overall a negative tone."
The Chinese yuan, the most sensitive currency to the trade talks, had dropped to a one-month low in offshore trade overnight, but was a little stronger at 7.1434 per dollar in onshore trade on Wednesday.
The Australian and New Zealand dollars ticked higher, with the Aussie rising 0.2 percent to $0.6741 and the kiwi 0.3 percent to $0.6312.
Sterling languished at $1.2214, close to its lowest since early September, on reports that talks between Britain and the European Union were close to breaking down without an exit deal.
In a telephone call on Tuesday, German Chancellor Angela Merkel told British Prime Minister Boris Johnson that a deal was "overwhelmingly unlikely," a Downing Street source said.
The Times newspaper reported Johnson also faces a fresh rebellion in cabinet, with a group of ministers poised to quit due to concerns he is leading the country into a no-deal exit.
That leaves the outcome on Oct. 31, when Britain is due to quit the EU, deeply uncertain.
"The ever-fluid Brexit saga is expected to leave the pound exposed to politically-driven bouts of volatility over the coming weeks," said FXTM analyst Han Tan.
Source: Reuters


Clic here to read the story from its source.