Dollar heads for weekly gain on trade talk hopes but doubts remain

Economy 12:19 08.11.2019

The dollar held its gains versus the yen and Swiss franc on Friday as investors bought riskier assets on news that China and the United States had agreed to roll back tariffs as part of an as yet unfinalized preliminary pact to end their trade war, Eurasia Diary reports citing CNBC.

China and the United States have agreed to roll back tariffs on each others’ goods in a “phase one” trade deal if it is completed, officials from both sides said on Thursday.  

Sentiment is likely to remain supportive for the dollar, equities and other risky assets as a de-escalation in the U.S.-China trade war removes a huge risk to the global economic outlook.

“The overall tone is risk-on, which is a positive for the dollar and a negative for the yen,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities in Tokyo.

“We can see this in other markets, which is why stocks are so strong. We still need to figure out when the United States and China will sign this deal, but the mood so far is supportive for markets.”

The dollar held steady at 109.26 yen on Friday, close to a five-month high, and was headed for a 1% gain for the week.

The greenback edged higher to 0.9949 Swiss franc, on course for a 0.9% gain.

The dollar index against a basket of six major currencies stood at 98.136, up 1% this week.

The progress in resolving the 16-month long trade war also supported the China’s yuan. In the onshore market, the yuan traded at 6.9788 per dollar, and it was set for its fifth straight weekly gain, which would be the longest winning streak since February.

However, there is still some skepticism about a trade deal as officials inside and outside the White House have bristled at the notion of giving up punitive tariffs.

Muddying the water further, White House spokeswoman Stephanie Grisham told Fox News Channel in an interview on Thursday that the United States is “very, very optimistic” about reaching a trade deal with China soon. 

The prospects to the United States and China ending their trade war left the safe haven yen nursing losses against the euro and the Australian dollar.

Sterling traded near a two-week low in the wake of the Bank of England’s decision on Thursday to keep its Bank Rate unchanged at 0.75%. Investors had expected that decision to be unanimous, but two of the nine member board voted for a cut due to uncertainties posed by Britain’s fraught exit from the European Union, and others, including Governor Mark Carney, said they would consider a reduction in the future.

As a result, market odds on a interest rate cut next year rose as high as 80%.

The pound traded a $1.2812, close to the lowest since Oct. 24. Cable was on course for a 1% decline this week.

Hitherto, the BoE has resisted following the U.S. Federal Reserve and the European Central Bank in cutting its main interest rate, but the outcome of Thursday’s meeting suggests the BoE is poised to change its stance.

IEPF issued a statement regarding Azerbaijani children at the UN Human Rights Council

News line

Trump sets 25% tariffs on Japan and South Korea
12:00 08.07.2025
Israeli army says 5 soldiers killed, 14 injured in northern Gaza
11:45 08.07.2025
Brazil’s president sounds alarm over multilateralism crisis, condemns Gaza genocide at BRICS summit
11:30 08.07.2025
Protest Held in London Backing Pro-Palestine March Organizers Accused of Offences
11:15 08.07.2025
Japan to make diplomatic efforts to ensure implementation of Israel-Iran ceasefire: Top diplomat
11:00 08.07.2025
Trump Holds Talks with Netanyahu at the White House
10:45 08.07.2025
Trump says US has 'scheduled Iran talks'
10:30 08.07.2025
Trump says US will supply weapons to Ukraine
10:15 08.07.2025
Priorities of Azerbaijan's international development policy discussed
10:00 08.07.2025
US to impose 25% duties on imports from Kazakhstan from August
09:45 08.07.2025
Plans for border delimitation, demarcation with Armenia discussed in Baku
09:30 08.07.2025
Israel wants to coordinate with US on possibility of new strikes on Iran
09:15 08.07.2025
Netanyahu nominates Trump for Nobel Peace Prize
09:00 08.07.2025
Geno rejects signing of 38-year-old Jamie Vardy
21:00 07.07.2025
Gaza death toll passes 57,500 as Israeli attacks continue unabated
20:45 07.07.2025
Russian emergencies minister arrives in Baku
20:25 07.07.2025
Trump due to meet Netanyahu at White House
20:15 07.07.2025
Russia attacks recruitment centers in Ukraine's Kharkiv, Zaporizhzhia
20:00 07.07.2025
Pezeshkian says Israel attempted assassination against him
19:45 07.07.2025
Iran has military capability to strike Israel daily for 2 years, IRGC adviser says
19:20 07.07.2025
US envoy says ‘satisfied’ with Lebanese response on roadmap to disarm Hezbollah
19:00 07.07.2025
Peskov: Russia, Azerbaijan should remain close partners, allies
18:45 07.07.2025
The Gulf Observer: Armenians' destruction of Azerbaijan's cultural heritage - vandalism against all humanity
18:30 07.07.2025
Official: Nearly 1M foreigners arrived in Azerbaijan in 5 months of 2025
18:15 07.07.2025
Chief of General Staff of Azerbaijan Army visits Saudi Arabia
18:00 07.07.2025
Israeli PM approved Yemen airstrikes during his flight to US
17:45 07.07.2025
Expert: ECO Summit in Khankendi confirmed member countries' desire for inclusive, multipolar world
17:30 07.07.2025
AZAL introduces new online service
17:15 07.07.2025
Poland imposes checks on German and Lithuanian borders amid migration fears
17:00 07.07.2025
Saudi Arabia raises August oil prices for Asia, Europe buyers
16:45 07.07.2025
EU Reporter: Karabakh region became platform for int'l forums
16:15 07.07.2025
Georgian PM says direct foreign interference in democratic elections failed
16:00 07.07.2025
Typhoon Danas kills two in Taiwan, injures over 500
15:45 07.07.2025
'Coalition of the Willing' may fall apart over Starmer-Macron conflict
15:30 07.07.2025
Former Adjara head hospitalized with gunshot wound in Georgia
15:15 07.07.2025
Scientists reveal how caffeine slows down aging
15:00 07.07.2025
Thailand to offer US more trade concessions to avert 36% tariff
14:45 07.07.2025
Putin dismisses transport minister
14:30 07.07.2025
Israel carries out strikes on Houthi-controlled power station, ports across Yemen
14:15 07.07.2025
UK to name Iran as one of its biggest threats
14:00 07.07.2025
Hamısı