Benefiting from continued optimism about a potential U.S.-China trade deal, the value of the U.S. dollar has moved to the upside on Tuesday.
The U.S. dollar is currently trading at 109.13 yen compared to the 108.58 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1075 compared to yesterday’s $1.1128.
The greenback moved higher as President Donald Trump and Chinese President Xi Jinping are widely expected to sign phase one of an agreement sometime this month.
As part of the deal, the U.S. is likely to scrap tariffs on about $156 billion worth of Chinese imports currently set to take effect on December 15th.
A report from the Financial Times said the U.S. is also considering China’s request to lift the 15 percent tariff on about $125 billion worth of Chinese goods that went into effect on September 1st.
A person familiar with Beijing’s negotiating position told Reuters that China is continuing to press Washington to “remove all tariffs as soon as possible.”
On the U.S. economic front, the Institute for Supply Management released a report showing growth in U.S. service sector activity reaccelerated by more than anticipated in the month of October.
The ISM said its non-manufacturing index climbed to 54.7 in October from 52.6 in September, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 53.2.
A separate report released by the Commerce Department showed the U.S. trade deficit narrowed in the month of September, as the value of imports slumped by more than the value of exports.
The Commerce Department said the trade deficit narrowed to $52.5 billion in September from a revised $55.0 billion in August. The narrower deficit matched economist estimates.
The deficit shrank as the value of imports tumbled by 1.7 percent to $258.4 billion, while the value of exports slid by 0.9 percent to $206.0 billion.
The material has been provided by InstaForex Company – www.instaforex.com