The dollar has strengthened slightly this morning on the back of the Federal Reserve’s comments on interest rates. Fed Chair Jerome Powell stated that there won’t be cuts or hikes to interest rates any time soon. It seems as though the Fed will therefore be continuing with its ‘patient’ stance.
Yesterday, the dollar weakened against major currencies in reaction to poor manufacturing activity. This slowdown in manufacturing rekindled worries about the US economy, but was offset by a report that US companies added 275,000 workers last month – the most that has been added in nine months.
In US-China trade news, the two nations are closing in on a deal that includes an agreement on how the Trump administration will roll back a portion of the tariffs on Chinese goods. It has been reported that details still need to be worked out in Washington next week, but a deal could be reached as early as next Friday.
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