The Kiwi Dollar made ground for the 9th day in a row moving closer to the 0.6700 level overnight. Most major currencies were quiet, with movements being relatively contained as the market awaits this weekend’s Trump-Xi meeting in Japan.
All Eyes on Trump-Xi Meeting
There is much speculation around what will be the outcome of tomorrow’s crucial Trump-Xi meeting at the G20 summit. Some news agencies have been reporting that the US and China are headed for an uneasy trade-war truce and will return to the negotiating table. While others are speculating that China are insisting on a number of preconditions before agreeing to a truce, with President Xi not expected to make big concessions at his meeting with Trump. Something has to give, with Trump saying earlier in the week that his ‘plan B” was to impose more tariffs on Chinese imports if he doesn’t like what he hears from Xi. The uncertainty has seen markets tread water over the past couple of days with traders squaring up positions ahead of the summit.
US GDP Meets Expectations
US economic growth accelerated in the first quarter, with GDP expanding by 3.1% on a yearly basis to match market expectations and the previous estimate. The US Dollar Index was trading sideways with little movement after the announcement. Meanwhile US jobless claims rose by 10,000 to 227,000 in the week ended June 22, according to Labour Department figures released overnight.
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