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By xemarketanalysis January 9, 2019 1:36 pm
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    XE Market Analysis: USD Falls to October Lows Over Trade Talks with China

    OVERVIEW

    • US Dollar weakens trade talks wrap up for the week between the US & China with no apparent winner. 
    • The Canadian dollar has strengthened today as the Bank of Canada leaves interest rates on hold.
    • Sterling mixed as PM May suffers setback ahead of Tuesday's parliamentary vote on Brexit. 

    HIGHLIGHT

    The Euro broke the crucial 1.15 level against the US Dollar today as the Greenback weakened on the back of trade talk developments with China. We look towards the day of the day to see if this level sees a sustained break. It is not clear how much progress was made over key US concerns like cybertheft of intellectual capital and forced technology transfers.  

    US DOLLAR

    The US Dollar weakened today as trade talks progressed with China. A lack of a clear winner in this week's negotiations moved investors away from the safe haven Dollar and into riskier assets. Any further positive news is expected to continue this trend. 

    BRITISH POUND

    The Pound had a reasonably mixed day today in London trading hours. PM May faced a setback before the crucial meaningful vote scheduled for next Tuesday. It is thought that if May's deal is voted down she will only have a matter of days to secure a 'Plan-B' as a No Deal Statement has to be put forward by the 21st of January.

    EURO

    The Euro is stronger today and broke a crucial level against the US Dollar as the trade war talks progressed between US-China. After initially dropping on weak German and French data the Euro recovered to levels not seen for three months.

    CANADIAN DOLLAR

    The Canadian Dollar has strengthened on the back of an eighth straight up day for the price of oil. Paired with a more bullish Bank of Canada decision boosted the currency and is it up around 0.4% against its US Counterpart. The BoC revised its Canada's GDP forecast, to estimate growth at 1.7% in 2019 as opposed to the earlier prediction of 2.1%. 

    AUSTRALIAN DOLLAR

    The Australian dollar is up 0.4% against the US Dollar today as Chinese trade war worries ease. This alongside another strong day for oil prices has seen the currency recover towards the 0.7200 mark against the US Dollar.

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