Dollar awaits impeachment vote, kiwi flies on GDP
By Swati Pandey SYDNEY (Reuters) - The New Zealand dollar bounced from a one-week low on Thursday after the country's third quarter economic growth came in stronger than expected while greenback traders awaited a vote to impeach U.S. President Donald Trump.
By Swati Pandey
SYDNEY (Reuters) - The New Zealand dollar bounced from a one-week low on Thursday after the country's third quarter economic growth came in stronger than expected while greenback traders awaited a vote to impeach U.S. President Donald Trump.
In Britain, the pound remained under pressure on rekindled fears of a chaotic exit from the European Union. It was last at $1.3077 after sliding nearly 2% in as many days.
The kiwi climbed to $0.6589
Risk sensitive currencies such as the kiwi and its Australian counterpart started December on a firm footing led by the apparent removal of two main risks dominating global markets: a preliminary U.S.-China trade deal and the election victory of U.K. Prime Minister.
However, fears have resurfaced this week. Despite the Sino-U.S. trade agreement, the spectre of a U.S.-led tariff war has not disappeared as traders await clarity on the deal.
The safe haven yen
U.S. Trade Representative Robert Lighthizer said on Tuesday that the United States may raise tariffs on European goods as it tries to shrink its chronic trade deficit with the continent, re-igniting worries of the prospects of the export-driven euro.
"The most significant piece of news overnight has been the German December IFO survey, which... has shown evidence that the German economy may be in the process of pulling itself up by its boot straps," said Ray Attrill, Sydney-based head of forex strategy at National Australia Bank.
"Improvement in the German – and broader Eurozone – economy – is fundamental to our expectation for a softer U.S. dollar and stronger Euro next year."
A major headwind for the dollar was a vote in the U.S. House of Representatives on whether to impeach Trump later in the day. The Senate is expected to vote in January.
Despite the political uncertainty, an index that tracks the dollar against six major currencies jumped to a six-day high of 97.475 <.DXY>.
Solid U.S. economic data in recent days have tamed expectations of any easing by the Federal Reserve in the near term, keeping the dollar stronger. Money markets are not pricing in a rate cut anytime soon.
The Australian dollar
Markets will focus on interest rate decisions from the Bank of England and the Bank of Japan later in the day, with both seen unlikely to change policy.
(Reporting by Swati Pandey; Editing by Sam Holmes)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.