The US Dollar has continued to remain strong against both the Euro and the Pound after the US and China announced that they have agreed not to increase tariffs for the next 90 days in order to allow talks between the world’s two global super powers to progress.
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US President Donald Trump has claimed that the meeting with Chinse President Xi Jinping was ‘extraordinary’ and that ‘relations with China have taken a big leap forward.’
Since the summer Chinese goods entering the US have been hit with $250bn worth of tariffs whilst China has hit back with US$110bn on US goods during the same period.
The news that both parties are looking to come to more agreeable terms has helped the Dollar to strengthen as well as given more support to riskier commodity-based currencies including the Australian Dollar, New Zealand Dollar and South African Rand which have all strengthened throughout Monday’s trading session.
The other main reason why the US Dollar remains very strong and trading at the 1.27 levels at the time of writing is owing to the uncertainty over the Brexit talks. Despite the Pound challenging 1.30 on a number of occasions in recent weeks it has failed to remain above this level and it appears as though every time a negative statement is made the Pound appears to fall vs the Greenback.
With just over a week to go before the Brexit vote due to take place on 11th December we could see further losses ahead for anyone looking to buy US Dollars so if you’re considering buying US Dollars it may be worth getting things organised over the next few days to avoid the potential volatility of next week.
In other news Qatar has pulled out of OPEC after being a member for 57 years. In the last year alone Qatar has had sanctions placed on it by neighbouring countries including Saudi Arabia which previously was a very large trading partner. This has caused the value of oil to increase since the announcement and is another reason for the US Dollar’s strength.
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