The US Dollar moved higher against the Euro during London trade on Wednesday, boosted by talk of a possible deal to put an end to the U.S.-Sino trade rift. The US President helped to push that narrative by suggesting an agreement was in the final phase of negotiations. The greenback was also higher against the safe haven Japanese Yen, moving close to a 3-week peak. With the release of a raft of US-based data coming out today, analysts see continued support for the US Dollar, provided the data comes in largely as expected.
In London trade at 11:08 am, the EUR/GBP pair was trading at 0.8541 Pence, down 0.3349%; the pair has traded in a range today of between 0.85378 Pence to 0.85852 Pence. The GBP/USD was trading higher at $1.2885, a gain of 0.185%, moving away from the session peak of $1.28929.
Aussie Weighed by RBA Outlook
Also in London trade, the AUD/USD was moving lower as FX traders consider more easing ahead from the Reserve Bank of Australia. The RBA meets next Tuesday and analysts are predicting that they will decide to hold the status quo on monetary policy leaving the benchmark rate at 0.85%. Analysts believe that, despite that prediction, the RBA will introduce more quantitative easing in 2020, with the likelihood of two rate cuts. Currently, the AUD/USD was trading at $0.6781, down 0.0501%, with the pair moving off the low of $0.67716.