The US dollar rallied against most other currencies today. The major reasons for the rally were positive macroeconomic data released in the United States on Wednesday and optimism about the trade talks between the USA and China.
US Treasury Secretary Steven Mnuchin said that prior meetings with Chinese Vice Premier Liu He were “very productive.” Mnuchin will travel with a US delegation to China next week to achieve a trade deal before the March 2 deadline set by the White House. The Treasury Secretary was hopeful about the upcoming talks, stating:
We are committed to continue these talks. We’re putting in an enormous amount of effort to hit this deadline and get a deal. That’s our objective.
As for economic data, the Bureau of Economic Analysis reported that the US trade balance deficit shrank from $55.7 billion in October to $49.3 billion in November. That is compared to the consensus forecast of a $54.0 billion gap.
Tomorrow, reports on unemployment claims and consumer credit will be released.
EUR/USD dropped from 1.1404 to 1.1366 as of 18:51 GMT today. GBP/USD traded at 1.2939 after opening at 1.2948 and rallying to the daily high of 1.2979. USD/JPY traded near the opening level of 109.95 following the earlier drop to the session low of 109.56.
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