The dollar strength U.S. and Chinese trade officials neared finalizing parts
A statement issued by the USTR following Friday’s negotiations said “They made headway on specific issues and the two sides are close to finalizing some sections of the agreement. Discussions will go on continuously at the deputy level, and the principals will have another call in the near future.” The statement provided no details on the areas in which progress was made.
The dollar had strengthened earlier in the day against the pound, but some of those gains were reversed after the European Union agreed to London’s request for a Brexit deadline extension but set no new departure date, giving Britain’s divided parliament time to decide on Prime Minister Boris Johnson’s call for a snap election.
“I think the Fed is largely priced to deliver a cut. If it doesn’t the dollar would benefit,” said Jalinoos, “unless it is very dovish in not delivering a cut. If it delivers a cut and it sounds like it’s the end of a cutting cycle, that would also be dollar positive.”