Forex Today; What You Need To Know For October 16, 2019

October 16, 2019 by  
Filed under Featured, Forex for Beginners, Forex Tips

The dollar headed towards a four-week low against other major currencies on Wednesday as elevated trade tensions between Washington and Beijing are still weighing down the worldwide growth outlook.

Risk appetite was on the back burner with the Japanese Yen firming against the Dollar while the Australian dollar and Kiwi were losers.

U.S.-China ties came into focus once more, the yuan fell once Beijing criticised new U.S. legislation seen as condemnation of pro-democracy protests in Hong Kong. Trade tariffs from China and the US over the past year have forced central banks to start out cutting interest rates as international growth expectations have weakened.

On Tuesday, the IMF said it expected the worldwide economy to grow in 2019 at its slowest pace since the 2008-09 economic crisis at 3.0%. This was announced as traders were led to believe that U.S. and China may try a softer approach to their trade conflict over the coming days.

Sadly, on Wednesday, there was no sign of tensions easing. The Dollar Index is at its lowest level since late September showing hownfragil things really are.

Reports of a “Phase 1” trade deal last week at first was cheered by markets however the dearth of details round the agreement has since restrained any enthusiasm.

Its about trade stupid.

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