The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
Evergreen buck goes down amid US-China trade negotiations
On Tuesday, the evergreen buck declined on reports that America and China are moving to the next stage of their trade negotiations.
Besides this, the UK currency remained near its 20-month low versus the greenback after British Prime Minister Theresa May dared to call off Tuesday’s vote on her Brexit agreement, so she could return to Brussels to ask for changes to this stuff.
The move applied pressure to the UK currency because financial markets judged the risk of no-deal Brexit has surged.
As a matter of fact, the USD index tumbled by 0.1% showing 97.058 after Reuters informed that US Treasury Secretary Steven Mnuchin, Trade Representative Robert Lighthizer along with Chinese Vice Premier Liu He had a telephone conversation, discussing the roadmap for the next stage of their trade negotiations.
The conversation shoed up after American leader Donald Trump and his Chinese counterpart Xi Jinping made up their mind to suspend the planned increase of January 1 American levies from 10% to 25% on $200 billion of China’s products.
Nevertheless, the tension between the two leading economies was still high especially after the detaining of CFO at China’s Huawei Technologies the previous week.
The currency pair USD/CNY dived by 0.2% ending up with 6.9033 because the People's Bank of China set the Yuan reference rate at 6.8996 against yesterday’s settlement of 6.9099.
Besides this, the Indian rupee bounced off after the country’s key financial institution sold the American dollars via the state-run banks for the Rupee at about 72.35.
Reuters also informed that Urjit Patel, Reserve Bank of India Governor resigned suddenly on Monday following a months-long tussle over policy with the cabinet.
The currency pair USD/JPY went down by 0.3% trading at 113.03.
Moreover, AUD/USD and NZD/USD both headed north by 0.2%.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
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