· The dollar index hit it highest level in two years on Thursday, after sizeable gains from the previous session.
The dollar index, which measures the greenback against a basket of other currencies, rose to 99.11, its highest level of 2019 and in two years.
On Wednesday the index jumped 0.7%, its largest one-day rise in about three months.
The euro was 0.16% higher against the dollar at $1.0959, after falling as low as $1.0923, its weakest since May 2017.
· Increased political tensions on both sides of the Atlantic - an unfolding effort by U.S. congressional Democrats to impeach President Donald Trump and ongoing uncertainty linked to Britain’s divorce from the European Union - was, however, likely to keep the greenback in demand, analysts said.
Despite the opening of an impeachment inquiry into U.S. President Donald Trump this week and mixed signals on a trade deal, the dollar has remained resilient. It has been in demand both as a safe-haven when investors become nervous, and also when a deal with China - and a boost to the global economy - seems within reach.
· U.S. government debt yields fell on Thursday as investors monitored trade deliberations between the U.S. and China and awaited updates from Washington on the impeachment inquiry into President Donald Trump.
The yield on the benchmark 10-year Treasury note was down at around 1.687%, while the yield on the 30-year Treasury bond was down at 2.129%.
Modest optimism over U.S.-China trade relations lingered on Thursday after Trump said in the prior session that a trade deal between the U.S. and China could arrive sooner-than-expected. Trump’s comments on Wednesday from the United Nations sent both equities and yields higher as the more positive outlook sent traders toward riskier assets.
Bloomberg News also reported China is expected to increase its U.S. soybeans purchases during trade talks next month. Both countries have engaged in a tit-for-tat tariff war since 2018 and imposed taxes on billions of dollars’ worth of each other’s imports.
· China trade talks set to resume Oct. 10
Trade talks between the U.S. and China are set to resume Oct. 10-11 in Washington, D.C., three people close to the talks told CNBC on Thursday.
Chinese Vice Premier Liu He will be representing the delegation from Beijing, one of the people told CNBC.
· China’s top diplomat said on Thursday that China was willing to buy more U.S. products, and said trade talks would yield results if both sides “take more enthusiastic measures” to show goodwill and reduce “pessimistic language” in their trade dispute.
· U.S. House Speaker Nancy Pelosi on Thursday accused President Donald Trump of trying to cover up an attempt he made to pressure Ukraine into investigating Democratic presidential candidate Joe Biden.
The leading Democrat in Congress, Pelosi told reporters that a House of Representatives impeachment inquiry launched this week would focus narrowly on the Ukraine episode and that other instances in which the Republican Trump may have abused the power of his office would be considered later.
· A whistleblower report released on Thursday said President Donald Trump not only abused his office in attempting to solicit Ukraine’s interference in the 2020 U.S. election for his political benefit, but that the White House tried to “lock down” evidence about that conduct.
In a report released by a Democratic-led congressional committee, the whistleblower said White House officials intervened to shift records of a controversial phone call between Trump and Ukraine’s president from the computer system on which they would normally be stored.
“Instead the transcript was loaded into a separate electronic system that is otherwise used to store and handle classified information of an especially sensitive nature,” the report said. “One White House official described this act as an abuse of this electronic system because the call did not contain anything remotely sensitive from a national security perspective.”
· The U.S. House Permanent Select Committee on Intelligence on Thursday, September 26, released a declassified version of the whistleblower complaint containing allegations about U.S. President Donald Trump's conduct during a phone call with President of Ukraine Volodymyr Zelensky on July 25, 2019.
According to CNBC, the nine-page document details an "urgent concern" that the president is "using the power of his office to solicit interference from a foreign country in the 2020 U.S. election." It not only details Trump's July 25 call with Ukraine's president during which he asked his counterpart to investigate the Biden family, but also alleges administration efforts to "lock down" records of the conversation.
· The U.S. economy and labor market continue to be strong but there are “several headwinds,” particularly uncertainty around trade and politics that affect business confidence, the president of the Richmond Federal Reserve said on Thursday.
“I’m particularly concerned about the roller coaster we’ve been on recently,” Thomas I. Barkin, the president of the Federal Reserve Bank of Richmond, told the Risk Management Association in Richmond, Virginia.
“Between Brexit, the ongoing negotiations with China, tensions in the Middle East and the political headlines,” he said, “it’s been tough for business to feel like they’re on solid ground.
GDP growth has slowed in China and stalled in the Eurozone, he said. “There’s a risk that weakness will affect us.”
· British Prime Minister Boris Johnson said on Thursday tempers needed to calm following a vitriolic session in parliament, after critics accused him of using language that had led to threats and abuse against his opponents.
Parliament reached boiling point on Wednesday when Johnson and his opponents engaged in hours of furious argument over Britain’s departure from the European Union. Lawmakers hurled allegations of betrayal and abuse of power across the chamber.
· Turkish President Tayyip Erdogan said on Friday it was impossible for Turkey to stop buying oil and natural gas from Iran, despite the threat of U.S. sanctions, and added that trade between the two countries would continue, according to broadcaster NTV.
Speaking to reporters on his return flight from the United Nations General Assembly in New York, Erdogan said Turkey was not afraid of possible U.S. sanctions over its trade with Iran, adding that Ankara did not want to sever its cooperation with Tehran.
· China on Thursday criticized the United States for imposing new sanctions on Chinese entities and people suspected of transferring oil from Iran, accusing Washington of “bullying”.
China’s cooperation with Iran is legitimate and legal, Chinese foreign ministry spokesman Geng Shuang said.
· Oil slipped on Thursday as new details connected to the impeachment inquiry into U.S. President Donald Trump weakened demand sentiment while moves to quickly restore Saudi output after attacks on its oil infrastructure promised more oil supply.
The U.S. House Intelligence Committee released a declassified version of a whistleblower report alleging Trump used his office to solicit interference in the 2020 presidential election from a foreign country.
Brent crude futures ticked up 40 cents, or 0.6%, to $62.79 a barrel while U.S. West Texas Intermediate (WTI) crude settled down 8 cents, or 0.1%, to $56.41 a barrel.
· North Korea said on Friday that a lack of progress in implementing agreements made between U.S. President Donald Trump and North Korean leader Kim Jong Un cast doubt on prospects for a future summit, state news agency KCNA said.
“The U.S. has done nothing for implementing the joint statement” from the first summit between Trump and Kim in Singapore last year, KCNA said, quoting North Korean Foreign Ministry advisor Kim Kye Gwan.
The official criticized the joint military drills between U.S. and South Korea, as well as strengthened sanctions and pressure on North Korea.
Reference: CNBC, Reuters
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