On Tuesday afternoon, EURUSD stopped falling, but investors really want to see any progress in US-China trade talks in the nearest future.
EURUSD remains weak on Tuesday afternoon. The current quote for the instrument is 1.1129.
Right now, the thing that is balancing the American currency is an anticipated signing of a preliminary trade agreement between the USA and China. The APEC summit, where the parties could have signed the document, was canceled, but it didn’t change intentions and plans to sign the agreement, at least from the American side. Yesterday, Financial Times wrote that Washington didn’t exclude the possibility of decreasing import fees for some Chinese goods. At the same time, Beijing is deciding on the place where the parties can sign the first phase of the trade agreement.
Greenback’s reactions are quite obvious: any progress in talks may really stop trade wars by decreasing risks relating to the global economic outlook. Moreover, this may stop global Central Banks from cutting their interest rates in the future.
There are no interesting numbers from Europe in today’s economic calendar today. However, in the evening the USA is scheduled to report on the Trade Balance for September and the Services PMI and the ISM Non-Manufacturing PMI for October. Still, as long as market players’ attention is focused on trade wars, they won’t be interested in numbers too much.