The dollar crept higher on Thursday as forex investors were cautious ahead of a two-day meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping. The meeting could infact have geopolitical ramifications.
A hawkish tone in the minutes released yesterday of the last FOMC meeting minutes, and a stronger than expected ADP employment change for March didn’t do much to avert the USD’s decline yesterday at close, and even this morning.
The safe-haven yen climbed against its major rivals, up to a one-week high against the dollar and a 4-1/2 month peak against the euro on Tuesday. Forex investors grew concerned about a possibly tense meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
The dollar jumped to its highest in over a week versus its major rivals on Wednesday driven by the outlook on U.S. and European interest rates. Forex investors judged the the selloff following U.S. President Donald Trump's botched healthcare vote as overdone.
US dollar managed a small comeback after opening lower at week start. Early into this week the USD was selling off after President’s Trump failure to pursue and pass the healthcare bill as he had promised to do. The healthcare bill was being seen as a litmus test of upcoming government proposals particularly the expected tax cuts and fiscal stimulus, so the Government’s inability to perform on this initial bill did not bode well and trigerred a sell off in the USD.