As all indications point to a positive resolution in the trade conflict between the United States and China, the dollar has shown improvements against foreign currencies. The dollar had been down after various foreign relation issues as well as some unforeseen instability within the US market. Now nearing a two-week high, it looks like the averted trade war has prevented an unpleasant plummet in value.
In addition, the sterling, the currency of Great Britain, has also made a welcome rebound as UK Prime Minister Theresa May works to improve the Brexit deal to lessen the uncertainty about her country’s imminent exit from the European Union. Worries throughout both England and Europe over recent weeks have heightened concerns that Brexit could cause chaos throughout the region as it comes to be implemented.
Trade talks between the US and China have involved US Treasury Secretary Steve Mnuchin, US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He. Early rumors speculate on a lower of various tariffs as the trade disagreements come to be resolved but final details have yet to be released of the plan. The discussions alone were the signs of progress to the US and foreign markets had been looking for these past months, hoping for a relief in tensions across the Pacific. Many markets have suffered periodic volatility as some analysts in the US and elsewhere predicted that the US-China situation would devolve into a trade war large enough to hurt many world economies.
Forex broker recommendations in Australia, Asia and elsewhere have now changed for the positive as the outlook improves for investors worried about how market volatility will impact their stock market positions. European investors will still be watching closely to see how PM May and her counterparts on the Continent come to resolve the Brexit issue. France has also suffered some recent currency valuation issues as protestors took to the street to share concerns over the recent actions of President Emmanuel Macron, his untimely absence from the public eye and his proposed economic reforms.
Through the week of December 11th, the dollar had improved against six foreign currencies, the sterling was up 0.02 percent, the euro had slipped 0.29 percent after previous reaching a strong position, and the franc was down slightly as well. Continued micro changes are also expected as the holiday season continues and retailers begin to release their early results.