Forex Today: Chinese tariff demands may break trade talks, USD marches forward, Fed speakers eyed
|Here is what you need to know on Wednesday, November 6:
- Trade: The US and China are nearing an agreement on Phase One of the trade deal. However, talks can still fall apart as China is reportedly insisting that the US removes older tariffs as well as the most recent ones imposed in September.
- US economy: The US Dollar has been consolidating its gains after the ISM Non-Manufacturing Purchasing Managers' Index beat expectations with 54.7 points. The services sector continues leading the economy forward while manufacturing remains a drag.
- Interest rates: Neel Kahskari, President of the Minnesota branch of the Federal Reserve, has said that interest rates are now accommodative. Charles Evans, his colleague from Chicago and John Williams from the New York Fed are set to speak today. The Fed is set to leave interest rates unchanged.
- New Zealand: NZD/USD has been losing some ground after the Unemployment Rate in the South Pacific nation disappointed with an increase to 4.2%. The odds of another rate cut by the Reserve Bank of New Zealand has risen.
- UK: Prime Minister Boris Johnson's Conservatives have been on the back foot after a gaffe by a senior minister and as the government refused to release a report about Russian meddling in the elections. Recent opinion polls have shown a steady lead for the Tories, but a majority is far from certain.
- Euro-zone: Markit's Services PMIs for October and Retail sales for September will provide further information about the euro-zone economies. Olaf Scholz, Germany's finance minister, has called for greater financial cooperation in the old continent around banking and taxes.
- Oil prices have been holding onto gains with WTI trading around $57. Oil Inventories are due out later today.
- Cryptocurrencies have been moving higher, with Ethereum leading the way, advancing above $190.
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