The EUR/USD pair exchange rate was flat today as investors became increasingly cautious due to a lack of progress on the China-US trade deal.
The pair traded around $1.106.
Robert Carnell thinks the trade deal is elusive.
‘With the clock ticking until the Schedule 4B list of additional tariffs due on Dec 15 is implemented, there doesn’t seem to be much progress on an elusive trade deal… There are about 25/26 days until the tariffs on this list are imposed – smack-bang in the middle of the gift-giving season in the U.S. I wonder if markets will get a little more jittery once we hit December?’ he said.
Robert is the Chief Economist and Head of Research at ING Bank, Asia-Pacific
His comment follows yesterday’s reports, which indicated a pessimistic mood in China over a trade deal due to Trump’s reluctance to roll back tariffs on Chinese goods.
Also, the USD/EUR remained stable, with investors unsure where to turn as the China and the U.S. fail to make progress on a workable deal.
USD traders will be waiting for today’s release of October’s U.S. Building Permits figures – expected to ease from 1.391 million to 1.385 million. Also, the U.S. housing statistics for the same month are expected to improve.
EUR/USD exchange rate stable despite optimism for Eurozone economy
The Euro failed to gain on the USD today, although Morgan Stanley was optimistic about the Eurozone’s return to health next year.
‘Eurozone growth is expected to pick up as U.S. growth starts to slow, benefiting EUR/USD particularly as market expectations for Eurozone growth are fairly low. U.S. growth is likely to slow further into 2020 as fiscal tailwinds fade, while European data may exceed the market’s low bar.’ said Hans Redeker.
Hans is the Global Head of Strategy at Morgan Stanley.
Meanwhile, political developments in the U.K. remain in focus ahead of the Dec 12 general elections. European markets are feeling increasingly optimistic that the Conservatives will further consolidate their lead ahead of the Labour party.