The dollar is strong this morning against a basket of currencies, as President Trump and President Xi Jinping have reached a trade war truce. Trump said he would hold back on new tariffs, whilst Xi agreed to China buying more farm products. Trump also agreed to review the status of Huawei in the US.
Despite these positive developments, experts say that a lack of any substantive agreement means that global economic woes are likely to continue.
Donald Trump made history yesterday as he was the first US President to set foot in North Korea. Whilst his meeting with Kim Jong-un was little more than a photo opportunity, it could mark the resumption of further discussions for a nuclear deal.
The dollar took a hit on Friday after economic data reinforced expectations of an imminent rate cut. The core U.S. personal consumption expenditure price index rose 0.2% in May, as expected, which hasn’t changed the view that interest rates could be cut by 25 basis points later this month.
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