Category: general

The post Pound Sterling flattens against US Dollar after Trump-Xi trade talks appeared com. The Pound Sterling (GBP) flattens around 1. 3200 against the US Dollar (USD) during the European trading session on Thursday. The GBP/USD pair turns flat as the US Dollar has recovered its early losses, following comments from United States (US) President Donald Trump and China’s commerce ministry after the meeting between Trump and Chinese leader Xi Jinping. At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades flat around 99. 20. After trade talks with Chinese leader Xi, US President Trump has claimed that the “meeting with Xi was amazing”. He said, “On a scale of 1 to 10, the meeting with Xi was a 12”. Trump further added that tariffs on China will be 47% down from 57% there will be no roadblocks on rare earth exports to Washington and the purchase of soyabeans by Beijing will begin immediately. In response, the Chinese commerce ministry has stated that Beijing will suspend export control measures announced on October 9 for a year, and will expand agricultural trade with Washington. Signs of improving US-China trade relationship are favorable for the US Dollar. Daily digest market movers: Pound Sterling gains temporary cushion against US Dollar The Pound Sterling gains a temporary ground against the US Dollar on Thursday after revisiting an almost six-month low around 1. 3140 the previous day. The Cable fell sharply on Wednesday after the Federal Reserve (Fed) decision to reduce interest rates by 25 basis points (bps) to 3. 75%-4. 00%. This was the second straight interest rate cut by the Fed this year. The central bank was expected to announce a dovish interest rate decision, as recent US Consumer Price Index (CPI) data release has signaled that the impact of tariffs on inflation is not persistent. Additionally, deteriorating labor market conditions.