U.S. Dollar flat in holiday-thinned trade

The USD remained flat during the holiday-thinned trade as the China-US trade progress remained in focus.

However, the Latin American currencies remained active, with Brazil’s real experiencing several sharper moves.

The U.S. President Trump signed into law two bills backing Hong Kong protesters against the government. 

He signed the bills despite the potential backlash from China as the two countries try to resolve their trade dispute.

Officials in China have threatened to take firm countermeasures urging the U.S. government to stop interfering in their internal affairs.

The new laws have threatened to derail progress on trade talks, with the next batch of American tariffs due to take effect on Dec 15.

The U.S. Dollar Index was stable at 98.36 as of 15:32 GMT. The dollar was flat against the safe-haven currency Japanese yen with USD/JPY at 109.50.

Trading thin due to the U.S. Thanksgiving holiday

Forex trading was weak because of the U.S. Thanksgiving holiday on Thursday last week, with most investors off until Monday.

Brazilian real experienced another slump, with the USD/BRL rising 1.01% to 4.2324, despite intervention by the country’s central bank.

The currency hit its all-time low of 4.277 this week after a mostly failed “mega” oild= auction accelerated the real’s decline.

Meanwhile, the GBP rose with GBP/USD pair rising 0.1% to 1.3917, and EUR/USD remained the same at 1.1010.