Forex – Dollar Remains on Track for November Gain as G20 Summit Kicks Off

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Forex - Dollar Remains on Track for November Gain as G20 Summit Kicks Off

Investing.com – The U.S. dollar rose against its rivals Friday, on stronger U.S. manufacturing data and a weakness in the euro, ahead of a crucial meeting between the U.S. and China at the G20 summit.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.50% to 97.18. The greenback remained on track to modest gain for November.

The Chicago PMI, a closely-watched indicator by the Institute for Supply Management (ISM), rose to a reading of 66.4 in November from 58.4 the prior month, topping economists’ estimates for a reading of 58.6.

The upbeat data on regional manufacturing comes as investor focus shifted to the G20 Summit in Argentina, where President Donald Trump and President Xi Jinping will meet to discuss trade at a dinner on Saturday.

Ahead of the summit Trump touted optimism, saying there were “good signs” for the talks with China.

Trump said recently that he plans to increase the current 10% tariffs on Chinese imports by January next year, risking a further escalating in tensions between the world’s largest two economies .

The dollar was also supported by slump in the euro after eurozone inflation data undershot economists’ forecasts, denting investor expectations that the European Central Bank may adopt a more aggressive outlook on monetary policy sooner rather than later.

EUR/USD fell 0.73% to $1.1310.

GBP/USD fell 0.30% to $1.2748 as Brexit angst remained front and center, offsetting better-than-expected U.K. housing data.

CAD/USD rose 0.13% as falling oil prices and weaker-than-expected Canada economic growth data weighed on the loonie.

USD/JPY rose 0.15% to Y113.65.

— Reuters contributed to this report.

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