Renewed hopes for U.S.-China trade talk weigh on dollar

The dollar came under pressure and the Chinese yuan held gains on Thursday after a report that Washington was seeking a new round of trade talks with Beijing reduced safe-haven demand for the U.S. currency.

The euro and the pound stood firm ahead of policy decisions by the European Central Bank and the Bank of England scheduled later in the day.

The dollar index against a basket of six major currencies stood little changed at 94.831 (DXY) after declining about 0.5 percent the previous day.

The greenback fell after the Wall Street Journal reported on Wednesday that senior U.S. officials led by Treasury Secretary Steven Mnuchin had sent invitations to their counterparts in Beijing proposing another round of bilateral trade talks.
Oil on Friday clawed back some of its losses from the previous session, when prices fell the most in a month, as concerns about oil supply are countering worries that emerging market crises and trade disputes could dent demand.

Brent crude was up 8 cents, or 0.1 percent, at $78.26 a barrel by 0338 GMT, after falling 2 percent on Thursday. The global benchmark rose on Wednesday to its highest since May 22 at $80.13.

U.S. West Texas Intermediate (WTI) futures were up 18 cents, or 0.2 percent, at 68.76 a barrel, after dropping 2.5 percent on Thursday.

Brent is heading for a 1.8 percent gain this week, while WTI is on track for a 1.5 percent increase.
The British pound has tried to rally during the day on Friday early, but the revelation that perhaps Labour is possibly going to vote against the Brexit deal of course has a lot of concern about the British pound showing up into the marketplace. With that, it makes sense that we would pull back, and of course it also makes sense that we will be paying attention to geopolitical factors and the trade war as well. Because of that, it’s not a huge surprise to see that there would be a little bit of negativity creep into the marketplace. However, I don’t necessarily think that a meltdown is coming I just think that a pullback is likely. When I look at this chart, I would anticipate that the ¥145.50 level will probably be the beginning of support, and possibly a move below there could occur, perhaps driving the market down to ¥145.
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European Central Bank policymaker Jozef Makuch may consider stepping down as head of Slovakia's central bank early to allow parliament to appoint a successor before what are expected to be highly divisive elections in spring 2020, he said.

That would avoid the prospect of political wranglings leading to his post being left vacant for an extended period, as has happened in Slovenia, which has been unable to pick a new governor since March.
Makuch, whose term ends in 2021, told reporters he considers finance minister Peter Kazimir as a suitable replacement.

"The next government will likely be made of several parties with a different world view," Makuch said, addressing rumors in the Slovak press that he is preparing for an early departure. "That could lead to political instability and early elections."
Bitcoin Falls, Ethereum Down 11%; Ripple Crypto Product to Go Live Next Month

Bitcoin and other cryptocurrency prices fell on Tuesday, with Ethereum and Litecoin down more than 11%. Ripple hinted that its cryptocurrency product xRapid would go live “in the next month or so.”
Bitcoin traded 3.6% lower to $6,249.9 at 12:20AM ET (04:20 GMT) on the  Bitifinex  exchange. 
Ethereum  plunged  11.5% to $196.13 in the previous 24 hours.  
The U.S. dollar slipped, while the Japanese yen hovered near a two-month low on Wednesday as investors digested the latest trade news.

The US Dollar Index, which tracks the greenback against a basket of other currencies, was down 0.07% at 94.16 by 12:26AM ET (04:26 GMT).

The dollar slipped after Beijing announced on Tuesday retaliatory tariffs that targeted more than 5,000 U.S. products worth $60 billion. The new tariffs would take effect on Sep 24, China’s Ministry of Finance said in a statement. The country’s commerce ministry also filed a complaint to the World Trade Organization (WTO) against the U.S., according to reports.
The Trump administration previously stated that the U.S. would impose tariffs on another $267 billion of additional imports if China retaliates.
“China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers because of their loyalty to me,” Trump said on Twitter. “What China does not understand is that these people are great patriots.”
Meanwhile, the Japanese yen, which is widely considered a safe asset during periods of risk aversion, weakened to near a two-month low of 113.18 earlier in the session as markets took comfort from the fact that the new U.S. tariffs were set at 10% for now rather than the previous expected 25% tariff. The USD/JPY pair last traded at 112.35, down 0.03%.
The euro traded at $1.1671 (EUR=), not far from its peak in August and September around $1.1730.
The Australian dollar, seen as a proxy for China-related trades as well as a barometer of broader risk sentiment, also held at three-week highs, having gained 1.5 percent so far this week.
Dollar Unchanged Ahead of Fed Meeting, New Zealand Dollar Jumps
The U.S. Dollar was unchanged on Wednesday as markets awaited the conclusion of the Federal Reserve’s latest meeting, while the New Zealand Dollar jumped against the dollar on a better-than-expected business confidence report.
The Fed is widely expected to hike interest rates later in the day. Markets also anticipate another rate hike before the year end, although the outlook for 2019 is less clear, according to analysts.
As well as an interest rate decision, the Federal Reserve will also serve up its summary of economic projections, outlining policymakers' expectations on economic growth, inflation and unemployment.
The U.S. dollar index, which tracks the greenback against a basket of other currencies, was unchanged at 93.73 by 11:01PM ET (03:01 GMT). The index has slipped around 3% since August.
Global trade tension remained in focus as China’s Vice Commerce Minister Wang Shouwen said Beijing would resume trade talks only if the U.S. show sincerity and not put a knife at China’s throat.
Wang then added that the two sides were set to have four rounds of talks but the U.S. went back on what they had agreed.
In the trade dispute, China and the United States have made no real progress on having direct negotiations.

Meanwhile, the New Zealand dollar rose on Wednesday as September’s business confidence index from the Australia and New Zealand Banking Group came in at -38.3, compared to the ten-year low of -50.3 in August. The NZD/USD pair last traded at 0.6675, up 0.5%. The AUD/USD pair also gained 0.3% to 0.7275.

Elsewhere, the USD/JPY pair slipped 0.05% to 112.91. U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe are due to meet later today to discuss the promotion of a bilateral trade following a round of trade negotiations.