U.S. Dollar Climbs On US-China Trade Talk Hopes

The U.S. dollar strengthened against its major counterparts in the European session on Monday, as sentiment lifted up amid hopes that the U.S.-China trade talks this week might help resolve an escalating trade war.

Underlying sentiment remain supported after the Wall Street Journal indicated that U.S. President Donald Trump and his Chinese counterpart Xi Jinping are considering meeting in November on the sidelines of multilateral summits.

China and the United States will hold lower-level trade talks this week, just before new U.S. tariffs on $16 billion of Chinese goods take effect.

Federal Reserve Chairman Jerome Powell is scheduled to speak Friday at the annual global central bank conference on monetary policy.

In addition, the Fed will release the minutes from its July 31-August 1 policy meeting on Wednesday, with investors looking for clues on whether the central bank will raise borrowing costs in September.

The currency was trading mixed against its major counterparts in the Asian session. While it rose against the euro and the pound, it held steady against the yen. Against the franc, it fell.

The greenback rose to 110.68 against the yen, from a low of 110.41 seen at 8:00 pm ET. The next possible resistance for the greenback is seen around the 112.00 area.

The greenback edged up to 0.9968 against the franc, after having fallen to 0.9943 at 10:45 pm ET. If the greenback rises further, it may find resistance around the 1.01 area.

Reversing from an early low of 1.1440 against the euro, the greenback ticked up to 1.1403. On the upside, 1.12 is likely seen as the next resistance level for the greenback.

Figures from Destatis showed that Germany’s producer price inflation held steady in July, in line with expectations.

Producer prices grew 3.0 percent year-on-year in July, the same rate of increase as in June.

Having fallen to a session’s low of 1.2753 against the pound, the greenback reversed direction and rose to 1.2729. The greenback is poised to find resistance around the 1.25 level.

Data from property website Rightmove showed that U.K. house prices dropped in August as more sellers entered the market during summer holiday season.

Average asking prices decreased 2.3 percent in August from July.

The greenback advanced to 1.3072 against the loonie, from Friday’s closing value of 1.3061. The greenback is seen finding resistance around the 1.32 level.

The greenback bounced off to 0.6613 against the kiwi, from an 11-day low of 0.6640 hit at 5:00 pm ET. Next key resistance for the greenback is seen around the 0.65 region.

On the flip side, the greenback held steady against the aussie, after falling briefly to 0.7317 at 4:00 am ET.

The material has been provided by InstaForex Company – www.instaforex.com

Portugal PPI Inflation Accelerates Further

Portugal’s producer price inflation accelerated for the fourth straight month in July, figures from Statistics Portugal showed Monday.

Producer prices climbed 4.4 percent year-over-year in July, faster than the 4.0 percent rise in June.

Excluding energy, producer price inflation rose to 1.9 percent from 1.8 percent.

On a monthly basis, producer prices increased 0.2 percent in July after a 0.6 percent gain in the prior month.

The material has been provided by InstaForex Company – www.instaforex.com

Oil Prices Mixed On Growth Concerns

Oil prices were trading mixed on Monday on concerns over slowing economic growth, particularly in China and India, as uncertainty prevails regarding the degree to which the U.S. sanctions will take Iranian crude oil off the market.

South Korea is in talks with the U.S. government to continue importing Iranian condensate as it is hard to find alternative sources due to limited suppliers, a Ministry of Trade, Industry and Energy official said Friday.

Investors are also weighing the possibility of supply disruptions in Libya as fresh protests by workers at the key Zawiya oil export terminal threaten to again stifle the country’s oil production from its major Sharara oil field.

Meanwhile, data released by Baker Hughes on Friday showed that U.S. energy companies kept the oil rig count unchanged last week amid falling crude oil prices.

Global Brent crude was up 29 cents or 0.39 percent at $72.11 a barrel while the NYMEX September light sweet crude contract was marginally lower at $65.17 a barrel.

The material has been provided by InstaForex Company – www.instaforex.com

Eurozone Construction Output Rises For Third Month

Eurozone construction output increased for the third straight month in June, data from Eurostat showed Monday.

Construction output advanced 0.2 percent month-over-month in June, but slower than the 0.3 percent rise in May.

Output of civil engineering activity grew 0.3 percent over the month and building output gained by 0.1 percent.

On a yearly basis, growth in construction output accelerated further to 2.6 percent in June from 2.0 percent in the prior month, which was revised up from 1.8 percent reported earlier.

In the EU28, construction output rose 0.6 percent monthly and by 2.7 percent yearly in June.

The material has been provided by InstaForex Company – www.instaforex.com