· The dollar dipped on Tuesday due to a fall in U.S. bond yields after touching a seven-week peak against a basket of currencies, as sterling rose following a report that rekindled hopes that Britain and the European Union are on the brink of a Brexit deal.
On Tuesday, the benchmark 10-year Treasury yield US10YT=RR climbed to a seven-year high at 3.261 percent before receding to 3.2101 percent on weaker equity prices and worries about global growth.
An index that tracks the dollar versus six major currencies .DXY was down 0.11 percent at 95.651 after hitting a seven-week peak at 96.155.
The euro was helped by a Dow Jones report that an agreement on the terms for Britain to leave the economic bloc may be reached as soon as Monday. The single currency had weakened earlier on worries about the tension between the EU and Italy over that country’s budget.
· Dow Jones, citing unidentified diplomats, said both parties had narrowed their differences around the Irish border but some issues have not been solved.
· Sterling GBP=D3 reversed its earlier drop to rise to $1.3147, up 0.41 percent. Against the euro, it was up 0.36 percent at 87.45 pence per euro.
The euro EUR=EBS fell to a seven-week low of $1.14325. It was last at $1.15000, up 0.08 percent.
· Risks to the global financial system have risen over the past six months and could increase sharply if pressures in emerging markets escalate or global trade relations deteriorate further, the International Monetary Fund said on Wednesday.
· U.S. employers are struggling to fill jobs and that is unlikely to change any time soon given the labor market is getting quite tight, Federal Reserve Bank of Philadelphia President Patrick Harker said on Tuesday.
· U.S. President Donald Trump on Tuesday again criticized the Federal Reserve, telling reporters the central bank is going too fast in raising rates when inflation is minimal and government data points to a strong economy.
· U.S. President Donald Trump said on Tuesday his second summit with North Korean leader Kim Jong Un would be held after U.S. congressional elections on Nov. 6.
· British Prime Minister Theresa May is planning to have an extended discussion on Brexit at next Tuesday’s cabinet meeting in hopes of outlining a compromise deal on the Irish border, The Times reported on Wednesday.
· Oil prices rose about one percent on Tuesday on growing evidence of falling Iranian crude exports before the imposition of new U.S. sanctions, as well as a partial production shutdown in the Gulf of Mexico because of Hurricane Michael.
Brent crude futures rose $1.09 to settle at $85.00 a barrel, a 1.30 percent gain. The global benchmark hit a four-year high of $86.74 last week but slipped as low as $82.66 on Monday.
U.S. West Texas Intermediate (WTI) crude futures rose 67 cents to settle at $74.96 a barrel, a 0.90 percent gain.
Reference: Reuters
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