The dollar index against a basket of six major currencies was little changed at 96.582 after edging up about 0.15 percent overnight when long-term Treasury yields surged to a one-week high amid on news of progress in U.S.-China trade talks. [US/]
The rise by the greenback, however, had been limited after Thursday’s soft U.S. economic data, including an unexpected fall in core capital goods orders and weak existing home sales, which affirmed expectations that the Federal Reserve will hold interest rates steady.
· “The currency market is entering a phase when it is becoming a little numb to political developments such as U.S.-China trade talks and Brexit,” said Takuya Kanda, general manager at Gaitame.Com Research.
“It’s back to fundamentals, particularly for the dollar, with each data release until next week’s non-farm payrolls report likely to slowly build directional cues.”
· The euro was 0.05 percent higher at $1.1340 and on track to gain 0.4 percent on the week.
· The dollar was effectively flat at 110.66 yen following modest overnight losses. It was headed for a gain of roughly 0.2 percent this week.
· The Australian dollar was up 0.3 percent at $0.7109 after sliding more than 1 percent to a 10-day low the previous day on fears a ban on the country’s coal by a Chinese port would hurt Australia’s already slowing economy.
· President Donald Trump sent a pair of bizarre tweets Thursday morning mentioning a "6G" wireless network and seemingly hinting that he could take a softer stance on Chinese telecom company Huawei.
The tweets rang as odd because 6G technology doesn't exist. U.S. telecom companies are barely on the cusp of 5G wireless networks, and they're facing stiff competition to build it before Chinese companies.
Trump doesn't name China or Huawei, but that's likely what he's referencing. Chinese companies are at the forefront of 5G technology, and the Trump administration resumed trade talks with Chinese negotiators Thursday. Both nations face a March 1 deadline to reach a deal, although Trump has indicated he could back off of it.
· Oil prices slipped from 2019 highs on Thursday, as U.S. government data showed a fifth weekly build in crude inventories and record production, while concerns about slowing global economic growth weighed.
Losses were capped by OPEC-led supply cuts and U.S. sanctions on Venezuela and Iran. Advancements in Washington-Beijing trade deal discussions also supported prices.
U.S. West Texas Intermediate crude oil futures ended Thursday's session 20 cents lower at $56.96 a barrel. WTI hit a fresh three-month high of $57.61 earlier in the day.
Brent crude futures fell by 13 cents to $66.95 around 2:25 p.m. ET, after touching a 2019 peak on Wednesday at $67.38.
Reference: CNBC, Reuters
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