Kantox currency update: the US-Mexico trade deal lifts market sentiment
27 August 2018 · 2 min read
The US dollar depreciated further on Monday on the back of news of a new trade agreement between US and Mexico, that has boosted risk appetite and eased investor’s concerns about the global trade tensions.
EUR/USD: rallies to 1.1700: The euro appreciated on Monday amid a generally brighter market sentiment, to extend its recovery to 4-week highs at 1.1700 area. As at London market opening times, the EUR/USD is trading at 1.1685.
GBP/USD: returns to 1.2900 resistance area. The pound advanced on Monday after bouncing back from 1.2800 lows last week and returns to 1.2900 with the dollar on the defensive in a context of higher appetite for risk. As at London market opening times, the GBP/USD is trading at 1.2885.
USD/JPY support at 111.00. Dollar pullback from 111.50 highs last week extended on Monday to 111.00, with the yen buoyed by the PBoC’s move to support the yuan that boosted sentiment in Asian markets. As at London market opening times, the USD/JPY is trading at 111.15.
In the Calendar Today
Datawise, we will have a very thin calendar today, with only low-relevance indicators. The investors will be awaiting more interesting releases later this week.