HONG KONG (Reuters) – Signs that the U.S. and China were making progress in efforts to resolve their trade dispute supported both the dollar and trade-exposed Asian currencies on Tuesday, while the Canadian dollar rose as voters went to the polls in a closely-fought election.
The volatile pound sat just under a 5-1/2-month high at $1.2962, with the Brexit project in disarray but traders looking to another crucial parliamentary vote on Tuesday to determine the next step.
US - President - Donald - Trump - Washington
U.S. President Donald Trump said in Washington that work toward ending the U.S.-China dispute was going well, while White House adviser Larry Kudlow said tariffs scheduled for December could be withdrawn if progress is made.
Meanwhile Commerce Secretary Wilbur Ross said that while a deal may not be finalised next month, that was less important than securing “the right deal,” following Chinese Vice Premier and chief negotiator Liu He saying last week that Beijing is approaching talks from a basis of mutual respect.
Effort - Countries - Market - Expectations - Negotiation
“A concerted effort from both countries to manage market expectations of a longer negotiation was well accepted,” said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney.
“It is now clear to investors that a comprehensive trade agreement will require many months of discussion.”
Dollar - Currencies - Trade - Fraction - High
The dollar was steady against most major currencies in early Asian trade, holding only a fraction below a three-month high against the Japanese...
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