Commodity News
HeadLine : Dollar softens as Sino-U.S. trade deal optimism lifts Asian currencies
Date : Jan 16 2020
Beijing and Washington touted the Phase 1 deal, signed overnight at the White House, as a step forward. Vice President Mike Pence said further Phase 2 discussions had already begun as negotiators work to resolve differences. helped the trade-exposed Australian and New Zealand dollars to book modest gains, while the safe-haven Japanese yen softened slightly. The greenback was also marginally lower against the euro and pound GBP , nursing overnight losses. Against a basket of currencies .DXY the dollar sat at 97.195. The centrepiece of the deal is a pledge by China to purchase at least an additional $200 billion worth of U.S. farm products and other goods and services over two years. United States will also cut by half the tariff rate it imposed on Sept. 1 on a $120 billion list of Chinese goods, to 7.5%. The agreement does not fully eliminate tariffs. It is vague on enforcement. It makes no real progress on host of thorny problems from intellectual and many analysts are sceptical that the purchase targets are realistic.

Source : Investing
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