Euro growth was driven by optimism in US-China trade negotiations


Euros and commodity-linked currencies are rising amid optimism about trade negotiations between the US and China. The new round has improved investor sentiment and contributed to the sale of the dollar. Expectations of further easing of monetary policy in China also supported the markets: Asian and European stocks opened with growth.

All these factors create an ideal background for riskier assets, the general mood corresponds. News that Beijing and Washington agreed to extend trade negotiations and will have an unplanned third day helped stimulate demand for riskier assets and commodity currencies. On the other hand, the euro is under pressure from an unexpected drop in industrial production in Germany, which underlined concerns about the ECB's plans to curtail incentive programs.


Rising prices for riskier assets accelerated since last Friday, when Fed Chairman Jerome Powell announced that he is aware of the risks to the economy and will be patient in making political decisions this year. This eased the concern that the Fed would raise rates, despite the weakness of the US economy.

The material has been provided by InstaForex Company -