· The dollar climbed to more than a five-month peak against the safe-haven yen and a three-week high versus the Swiss franc on Thursday, bolstered by expectations the United States and China were inching closer to a trade deal.
The world’s two largest economies have agreed to roll back tariffs on each others’ goods as part of the first phase of a trade deal, officials from both countries said on Thursday, offering a new sign of progress despite the two sides’ ongoing divisions over trade.
The Chinese commerce ministry, without laying out a timetable, said the two countries had agreed to cancel the tariffs in phases.
In afternoon trading, the dollar rose 0.3% against the yen to 109.33 yen, after earlier climbing to its highest level in more than five months at 109.48 yen.
Against a basket of currencies, the dollar was 0.2% higher at 98.128 .
The euro was down 0.2% against the dollar at $1.1048 , having hit three-week lows earlier in the session.
The pound, meanwhile, fell to two-week lows against the dollar and was last down 0.3% at $1.2818 after two Bank of England officials unexpectedly voted to lower interest rates on Thursday to ward off an economic slowdown.
The BoE kept the bank rate steady at 0.75%, but other officials with the central bank, including Governor Mark Carney, said they would consider a cut if global and Brexit-related headwinds do not ease.
TD Securities said in a research note that from a slightly longer-term perspective, sterling is likely to remain rangebound against the dollar over the next few weeks, with investors focused on the UK general election on Dec. 12.
· China’s Commerce Ministry said Thursday that Beijing had agreed with Washington to lift existing trade tariffs between the two nations in phases.
Gao Feng, a spokesperson for China’s Commerce Ministry, said that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods, according to the country’s state broadcaster.
The ministry spokesperson said that both sides were closer to a so-called phase one trade agreement after constructive negotiations over the past two weeks.
· China and the United States have agreed in the past two weeks to cancel tariffs in different phases, the Chinese commerce ministry said on Thursday without giving a timeline.
The Chinese commerce ministry, without laying out a timetable, said the two countries had agreed to cancel the tariffs in phases.
A U.S. official, speaking on condition of anonymity, confirmed the planned rollback as part of a “phase one” trade agreement that President Donald Trump and President Xi Jinping are aiming to sign before the end of the year.
· Mike Bloomberg, the billionaire former mayor of New York, is preparing to enter the Democratic presidential primary, according to NBC News, which cited a Bloomberg advisor.
The move didn’t necessarily mean Bloomberg, 77, was announcing a campaign, a source close to Bloomberg told NBC News. Rather, this source said, he’s doing this to keep his options open. Bloomberg is “troubled” by what he has seen in the Democratic field, the source added.
“He’s still not sure,” a source told CNBC. This source also said these are “unprecedented times” and that Bloomberg is concerned about what he’s seeing both from Democrats and President Donald Trump.
Bloomberg has emerged as a force in Democratic politics, mostly because of his deep pockets. He spent more than $110 million backing Democrats during the 2018 congressional midterm elections. The gun control group he backs, Everytown for Gun Safety, spent $2.5 million in Virginia this year, helping the Democratic Party take control of the statehouse for the first time since 1994. Bloomberg earlier this year launched Beyond Carbon, a $500 million group that advocates for energy reform.
· Europe has not yet taken a decision on how to respond to Iran’s decision to resume enriching uranium, which is restrained under its non-proliferation deal, but every step Tehran takes makes things more difficult, German Chancellor Angela Merkel said.
Iran said on Thursday it had resumed uranium enrichment at its underground Fordow nuclear plant, stepping further away from its 2015 nuclear deal with world powers after the United States pulled out of it.
· Brent crude rose above $62 a barrel on Thursday after China hinted at progress towards a trade deal with the United States, raising hopes for an end to a long dispute that has weighed on economic growth and fuel demand.
China and the United States have agreed in the past two weeks to cancel tariffs in different phases, the Chinese commerce ministry said on Thursday without giving a timeline.
The trade dispute has prompted analysts to lower forecasts for oil demand and raised concerns that a supply glut could develop in 2020. Oil fell on Wednesday, partly because of worries that a U.S.-China trade deal might be delayed.
Brent crude, the global benchmark, rose 58 cents to settle at $62.32. West Texas Intermediate crude climbed 80 cents, or 1.4%, to settle at $57.15.
· Saudi Arabia, Russia and their oil-producing allies are considering a range of options to maintain stability in the oil market just weeks ahead of a critical December meeting.
The so-called OPEC+ group struck another deal late last year to cut oil output by 1.2 million barrels per day (bpd) to support prices. The agreement runs until March 2020, and the producers are due to meet in Vienna to review the terms of the policy on December 5-6.
Reference: Reuters, CNBC, NBC
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