USD/JPYMajor currencies were off to a cautious start on Monday as market players looked to whether Washington and Beijing can soon sign off on a deal to end their trade war that has been a drag on the global economic growth.
Chinese state media Xinhua said on Sunday the two countries had “constructive talks” on trade in a high-level phone call on Saturday, but it gave no further details.
Against the yen, the dollar was traded at 108.75 yen, recovering from 108.235 touched on Thursday as rising hopes of a U.S.-China trade deal undercut the yen. Rising risk appetite was mildly positive for the euro, which stood at $1.10505, bouncing back from one-month low of $1.0989 set on Thursday. Elsewhere, sterling was extending its slow recovery to reach its highest levels in two weeks, trading at $1.2919, so far on the day.
A quiet start to the relatively calm week ahead, in terms of the macroeconomic releases and hence, the UK political updates and US-China trade developments will remain the central focus.
Today’s EUR calendar, the speeches from the European Central Bank (ECB) policymakers will headline alongside the German Bundesbank (Buba) monthly economic report. The UK docket remains data-empty while the US session also sees an absence of significant first-tier economic news.
Oil prices inched higher on Monday, extending steady gains from the previous week, with investors awaiting fresh clues over prospects for a trade deal between the United States and China and shrugging off concerns over steadily rising oil supplies. Meanwhile, prices of the safe-haven gold fell amid speculation that the U.S. and China will soon sign a partial trade deal.