The dollar was stronger against the euro and the pound yesterday ahead of the release of FOMC minutes, however slipped slightly after their release. The minutes showed Fed officials agreed that the policy stance “likely would remain” where it is “as long as incoming information about the economy did not result in a material reassessment of the economic outlook.” However, the minutes also revealed that they see an elevation in downside risks surrounding the economic outlook.
In US-China trade news, President Trump threatened to raise new tariffs on Chinese imports, and China condemned the US legislation aimed at protected human rights in Hong Kong, saying that the US should stop interfering. These latest developments cast doubts over whether a phase one deal can be signed in the near future.
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