Dollar Gains Fade On China-Eu Summit, Us Data Eyed

The dollar eased a bit against most major currencies on positive trade talks between China and the European Union although softer economic data from China and Beijing’s escalating trade war with the United States tempered the enthusiasm.

Chinese Premier Li Keqiang said on Monday the country will raise its market access and reduce tariff rates as it seeks more balanced trade with the European Union.

The remarks came just after the country’s second quarter data pointed to an economic slowdown, raising concerns about the potential fallout from a full-blown Sino-U.S. trade war.

The China EU Meeting is expected to produce a modest communique affirming the commitment of both sides to the multilateral trading system. Li said the two sides agreed to exchange market offers for the first time, which could reinvigorate long-running investment treaty talks.

The positive tone of the talks nudged up riskier currencies like the Australian and New Zealand dollars, as well as the euro, and in turn pushed the dollar index 0.2 percent lower against a basket of major currencies to 94.608.

The Dollar was mostly flat on the safe harbor yen at 112.38.

BUY USD/RMB AT: 6.6765, TAKE PROFIT AT: 6.6997, STOP LOSS AT: 6.6615

 

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