Dollar falls as peers rise on U.S.-China phone call

25.08.2020 - Korneychuk Evgeniya
Dollar falls as peers rise on U.S.-China phone call

The dollar fell, while the Aussie and the yuan rose after top U.S. and Chinese trade negotiators reported progress on the Phase 1 trade deal talks over a phone call.

The news reassured investors that the trade relationship between the two countries will stay intact despite diplomatic tensions.

The yen was up 0.2% to $106.17. The Aussie rose 0.2% to $0.7171, while the Chinese yuan firmed at $6.9070. 

Against the euro, the dollar fell 0.2% to $1.1813 and the pound rose 0.2% to $1.3080.

Risk sentiment was also boosted by a report from the Financial Times which said that U.S. authorities were considering accelerating the approval for a COVID-19 vaccine currently being developed.

Initially, investors expected Fed Chairman Jerome Powell to give a speech that would change the dollar’s direction in the fx markets. Traders are looking at a Thursday gathering where Powell is expected to sound dovish and hint at the central bank’s stance on inflation.

Investors are also awaiting Germany’s IFO Business Climate Index and U.S. consumer confidence data due later today.

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