The dollar remained fairly weak yesterday, despite US-China trade talks taking a more optimistic tone. China has signalled that they are open to a partial trade deal, and has even offered to increase the amount of soybeans it buys from the US ahead of the face-to-face talks, which begin today. It’s been reported that the deputy level talks, which aimed to lay the groundwork for higher level talks, have made no progress on critical issues. According to one source, China refused to talk about forced technology transfers.
The Federal Reserve released their FOMC meeting minutes yesterday evening, which revealed that most Fed officials believed that a 25 basis points cut to interest rates was necessary. The minutes also stated that policymakers are more concerned about risks associated with trade tensions, geopolitics and the global economy.
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