Euro gains as U.S.-China trade deal back in focus

The euro and its peers gained on Tuesday following White House trade adviser Peter Navarro’s claim that his comments on the U.S.-China trade deal were taken out of context.

The euro gained 0.3% to $1.1306, its one-week high after its overnight volatility rose to almost 10%. 

The Australian dollar was up 0.3% to $0.6928, its one-week high.

On Monday, Navarro said that the trade deal with China was “over”, prompting volatility in the markets. The trade adviser then said that his comments were taken out of context, while President Donald Trump tweeted that the deal was “fully intact.”

The safe-haven yen lost 0.2% to 107.10 on the dollar. The Chinese yuan was up 0.2% to $7.0669 in offshore trade.

The wild swings in the currency markets came as investors are torn between fears of a second coronavirus wave and hopes for economic recovery.