The dollar made gains against both the pound and the euro yesterday, as better-than-expected service sector data was released. Non-manufacturing PMI grew from 56.7 to 59.7 in January, boosting on the dollar’s previous day gains and beating the prediction of 57.4.
Positive housing data also benefitted the dollar, with new home sales rising to a seven-month high in December.
Despite a flurry of recent optimism surrounding the US-China trade deal, U.S. Secretary of State Mike Pompeo said in a media interview yesterday that President Trump will reject a US-China trade deal, if it’s not perfect. He stated that ‘Things are in a good place, but it’s got to be right’.
It seems that we could see a repeat of last week’s events between Trump and North Korean leader Kim Jong-un, when Trump stated that ‘sometimes you have to walk, and this was just one of those times.’ Could the same happen with China?
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