• The dollar remains under pressure on the eve of negotiations between the US and China

Market news

22 August 2018

The dollar remains under pressure on the eve of negotiations between the US and China

The dollar remains under pressure on Wednesday, as US President Donald Trump's comments on monetary policy continue to affect the US currency, and markets are awaiting the results of negotiations between the US and China and the publication of the minutes of the last meeting of the Fed.

Trump said in an interview with Reuters on Monday that he was not "delighted" with the Fed's rate hike, triggering a subsequent decline in the dollar.

Junichi Ishikawa, senior currency strategist at IG Securities in Tokyo, said that the euro "has already regrouped from its recent fall, and Trump's comments have provided an additional incentive for the short positions that will be observed in the market."

A week ago, the euro fell to 13.5 months low due to fears that the financial turmoil in Turkey, reinforced by the fall of the lira to a record low that could damage European banks.

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