FOREX-Dollar strengthens as trade war fears fade, risk appetite returns

collected by :John Locas

As the second quarter corporate earnings season begins, investors appear to be ignoring the deepening conflict between the United States and China over trade. A broad appetite for risk in currency markets on Tuesday saw the dollar rise 0.3 percent against the Japanese yen, a currency usually bought during times of political uncertainty, to 111.08 yen, approaching a six-month high. ADVERTISEMENTElsewhere, the British pound rebounded on Tuesday as fears faded about a challenge to Prime Minister Theresa May's leadership after the departures of two senior ministers. "The market is worried that yesterday's resignations could be a sign of major instability within the British government. Elsewhere currency markets were broadly risk-positive as investors appeared to shrug off concerns about the U.S.-China trade tensions.

FOREX-Dollar sags, euro buoyant after US, EU move towards averting trade war

Following talks with European Commission President Jean-Claude Juncker, U.S. President Donald Trump said on Wednesday they had agreed to "work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods." The euro was up 0.1 percent at $1.1738, stretching its rise after gaining 0.4 percent the previous day. "The United States and the European Union have seemingly declared a truce and hopes are that NAFTA talks and deals with China would be positive as well." The Chinese yuan rallied nearly 0.8 percent in offshore trading overnight, pulling back from a 13-month low reached on Tuesday. The Australian dollar hovered near a two-week high of $0.7464 scaled the previous day, when it advanced more than 0.5 percent.

FOREX-Dollar rallies on renewed trade war worries and upbeat Fed

As it stated in The euro fell to a one-week low as the dollar gained in early European trading. The escalation in the trade row also put pressure on the yuan and Aussie dollar, both of which have been vulnerable to a worsening trade conflict. Equity markets fell. The yen's gains were limited after it dropped on Tuesday, following the Bank of Japan's pledge to keep rates low for an extended period. ADVERTISEMENTChina's offshore yuan fell 0.2 percent to 6.8372.