The dollar is still weak against both the euro and the pound due to the Federal Reserve’s latest interest rate cut.
Face-to-face negotiations between the US and China have resumed, and are aimed at laying the groundwork for high level talks in October. Thirty Chinese officials have arrived in Washington for discussions that are expected to focus largely on agricultural goods. With regards to the talks in October, US Treasury Secretary Steven Mnuchin said that issues around currency will be discussed.
There have been reports that the US will temporarily exempt more than 400 types of Chinese products from tariffs. These products make up part of the $250 billion worth of goods that were hit with tariffs last year, and include plastic straws and Christmas lights.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
