The US dollar rebounded from a recent decline against major European opponents on Tuesday afternoon, but did not change against the Japanese yen. The initial excitement about the truce achieved by President Donald Trump and Chinese President Xi Jinping at the G-20 summit over the weekend has passed.
Uncertainty as to whether a 90-day truce could give the United States and China enough time to conclude a long-term trade agreement forced traders to be cautious.
The news that US Trade Representative Robert Lightheiser, one of Trump’s most “hawkish” trade advisors to China, has been appointed to negotiate, has increased skepticism.
The US dollar fell to a weekly low of 1.148 against the euro on Tuesday morning, but has since recovered to about 1.1340.
In October, eurozone producer price inflation accelerated, as Eurostat data showed, not meeting expectations. Producer prices rose 4.9 percent over the same period last year after a revised 4.6 percent in September. Economists had expected the rate to remain unchanged at 4.5 percent.
An adviser to the European Court of Justice said that the UK could still stop Brexit, according to article 50, without the consent of other EU states.
He stated that Article 50 of the Treaty of Lisbon allows Great Britain to unilaterally withdraw its decision to withdraw from the European Union until an agreement is formally concluded.
Bank of England Governor Mark Carney suggested that the likelihood of unorganized Brexit is very low.
The US dollar fell to an early low of 1.2839 against the pound sterling on Tuesday, but has since returned to 1.2725.
The British construction sector grew at the fastest pace in the last four months in November thanks to an increase in new job and job creation, although Brexit’s problems lower expectations for the coming months.
The CIPS purchasing managers' index rose to 53.4 from 53.2 in October, IHS Markit survey data showed. Economists had forecast a 52.5.
The US dollar fell to around 112.35 versus the Japanese yen yesterday afternoon, from an early high of 113.637.
In November, the monetary base in Japan increased by 6.1 percent compared to the previous year, the Bank of Japan reported, amounting to 501.330 trillion yen. This follows a two-month growth of 5.9 percent.