Forex Today: Dollar eases as stocks rally
|Here is what you need to know on Thursday, January 16th:
- The American dollar started the day advancing, but changed course with the US opening, ending the day lower against most major rivals. The EUR/USD pair settled around 1.1150 after hitting 1.1163.
- Sentiment improved following comments from US Treasury Secretary Mnuchin, who said that China has agreed to put together very significant laws to follow through on its commitments and there will be additional tariff rollbacks in phase two of the trade deal.
- The phase one of the trade deal signing ceremony saw US President Trump taking his time to criticize the Fed, in the middle of the announcement. Among other things, he announced that tariffs would be removed if they agree on a phase two deal, adding that the deal is much more comprehensive than just agricultural buying. China will be spending $75 billion on manufacturing imports, $50 billion on energy imports, $50 billion agriculture imports and $40-50 billion on service imports from the US.
- The pound tumbled following the release of December UK inflation data, which rose at an annual pace of 1.3%, missing the market’s expectations. Another BOE MPC’s member announced he would favor a rate cut. GBP/USD holding a few pips above 1.30.
- Crude oil prices edged lower, despite an encouraging EIA report showing a larger-than-anticipated decline in US crude stockpiles.
- US indexes resumed their advances to fresh record highs, trimming part of their gains ahead of the close.
- Crypto Today: Bitcoin a step away from smashing $9000
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