The Kiwi Dollar opens higher today with markets generally starting the week in a positive mood on the back of easing Middle East tensions and optimism over an expected U.S – China trade deal this week.
Trade Deal Getting Closer
A US-China Phase 1 trade agreement is expected to be released this week, with both sides on track to ink the deal this Wednesday in Washington. The details of the deal have been kept vague so far, so markets will be eager to get a better sense of what the deal really means in the long-run. The focus points are going to be on how comprehensive the agreement is, and the enforcement mechanisms for both sides. The Chinese Yuan continues to make ground ahead of the announcement reaching its highest level vs the USD since last August.
Weak UK Growth
The Pound was weaker overnight as data showed Britain’s economy grew at its weakest annual pace in more than seven years, contracting by 0.3% in November. The lower than expected number has increased the likelihood that the Bank of England will cut interest rates this month.
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