Dollar, yen supported as caution prevails on mixed trade signals
By Tom Westbrook SINGAPORE (Reuters) - The dollar and the safe-haven yen found support on Wednesday as a lack of clarity on U.S.-China trade talks kept investors cautious ahead of the release of minutes from the U.S. Federal Reserve's last policy meeting
By Tom Westbrook
SINGAPORE (Reuters) - The dollar and the safe-haven yen found support on Wednesday as a lack of clarity on U.S.-China trade talks kept investors cautious ahead of the release of minutes from the U.S. Federal Reserve's last policy meeting.
Moves were slight as jaded traders again weighed mixed messages on trade, with more upbeat reports offset by U.S. President Donald Trump delivering yet another warning of more tariffs if talks fail.
After falling overnight, the greenback rose a little on the Australian dollar
It was marginally higher against the euro
"It's a very slightly risk-averse day," said Westpac FX analyst Imre Spiezer. "There's a slightly cautious tone and mixed messages from the trade war negotiations."
The United States and China have been locked in tit-for-tat tariff hikes that have dented the global economy.
Hopes for progress on the dispute had risen overnight when Bloomberg reported that negotiations, which failed in May, would be considered a baseline in deciding what U.S. tariffs on China would be rolled back.
However, speaking at a cabinet meeting at the White House overnight, Trump noted that China was "moving along," but any deal would need to be one he liked.
"If we don't make a deal with China, I'll just raise the tariffs even higher," he told a room filled with senior U.S. officials.
The U.S. Senate's unanimous passage of a bill aimed at protecting human rights in Hong Kong amid a crackdown on demonstrations was also seen likely to raise tensions between the negotiating parties.
The Chinese yuan - the currency most sensitive to the trade dispute - dropped to a two-week low of 7.0335 per dollar in offshore trade
Traders and analysts also widely expect China will cut its new benchmark lending rate when it is fixed at 0130 GMT.
Elsewhere, the British pound
It was steady at $1.2919 in Asian trade.
The release of the Fed minutes from October are the next major scheduled event for markets, with investors looking for insight into the reasoning for last month's rate cut.
"In particular, clues for whether October was a 'hawkish cut,' with a high bar for any further easing, or a 'dovish pause' with a bias for more easing...will be sought," said Vishnu Varathan, head of economics and strategy for Mizuho Banlk in Singapore.
(Reporting by Tom Westbrook; Editing by Sam Holmes)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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