Euro trades near two-week high; trade talks, Fed minutes eyed

  • by Ahmed Mamdouh
  • August 22, 2018, 3:1 AM
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The euro traded higher on Wednesday, near its highest level in two weeks hit on Tuesday, ahead of trade talks between the U.S. and China and Federal Reserve minutes.

The single currency trade higher at $1.1590 after climbing to a two-week high of $1.1601 the previous session as the dollar came under pressure.

While President Trump has played down the importance of the trade talks between the two countries’ representatives, a spokesman from China’s foreign ministry said he hoped there would be a good outcome for this round of trade talks.

The euro started the week on a bullish run after Greece officially exited from eight years of international bailout programmes.

Investors will focus today on the trade talks and the Fed minutes, which may show officials were adamant to raising interest rates for two more times this year.

However, there could be some remarks from policymakers regarding Trump’s criticism to the Fed’s interest rate hike path.

The dollar index slipped to a low of 95.00, extending its retreat for a fifth straight sessions, on political concerns after the criminal convictions of two of Trump’s ex-advisors.

The green currency slipped off 14-month cliff at the end of last week, while resumed plunge this week after Trump criticized the Fed’s interest rate hike trajectory.

Federal Reserve Chairman Jerome Powell will talk in the central bankers meeting in Jackson Hole on Friday.

The pound snapped its four-day rally, as it inched lower to $1.2892 after it set a 9-day peak of $1.2924 on Tuesday.

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