The US dollar is mixed against a basket of currencies on Monday as investors weigh new economic data and consider the latest developments in the US-China trade saga. With volatility in financial markets and growing geopolitical uncertainty, it is apparent that investors are unsure how to trade in the final week of August.
During the annual Group of Seven (G7) summit, President Donald Trump announced that the US and China would be returning to the negotiating table. While it seems likely that both sides will renew talks, the biggest point of contention is who started the conversation. The president said that Chinese officials contacted his trade representatives about restarting discussions, but Beijing says it never got in touch with the administration.
China called last night our top trade people and said. âLetâs get back to the table,â so we will be getting back to the table and I think they want to do something. They have been hurt very badly but they understand this is the right thing to do and I have great respect for it. This is a very positive development for the world.
I think we are going to have a deal.
Foreign Ministry spokesman Geng Shuan and Hu Xijin, editor-in-chief of Chinese state-run newspaper the Global Times, denied that the phone calls happened.
Either way, the news sparked a rally in equities as the Dow Jones climbed 200 points.
Speaking to reporters, President Trump said that he really believes China wants a new trade agreement, noting that he does not believe âthey have a choice.â
Last week, he referred to President Xi Jinping as an enemy after China imposed new tariffs on US goods.
According to the US Census Bureau, July durable goods orders rose at a better-than-expected 2.1% clip, up from the previous monthâs 1.8%. This is a positive trend in the industrial sector since orders have contracted in three of the seven months.
Following a 0.03% increase in June, the Chicago Fed National Activity Index (CFNAI) contracted again. Last month, the CFNAI slipped 0.36%, a three-month low, as the index has spent much of the year in negative territory.
Investors will now focus on housing data as prices, applications, and rates will be released this week.
The US Dollar Index soared 0.45% to 98.08, from an opening of 97.59.
The USD/CAD currency pair tumbled 0.13% to 1.3268, from an opening of 1.3333, at 14:55 GMT on Monday. The EUR/USD fell 0.39% to 1.1102, from an opening of 1.1241.
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