The U.S. Dollar is trading in mostly familiar ranges as markets have reacted in a relatively positive tone to the trade tariffs between the U.S. and China.
Commodity markets continue to struggle to adjust, thus currencies that depend on stable commercial lines are trying to stay afloat.
Australian and Kiwi Dollar, Mexican Peso, and Canadian Dollar are all up as their situations are seeing some improvement with trade being an ongoing issue that requires negotiating as well as finalization. Canada is content with NAFTA talks and will continue working on revamped terms.
The Bank of Japan decided to maintain its policies the same with no mention of tightening any time soon. The typical safe-haven has swung plenty with the abundance of changing headlines on trade pacts and equity markets. Yen is flowing in levels that are the weakest since the end of July.
The Euro has gone up in value lately, but faces the potential for a downfall if Italy’s budget woes continue to confuse European finance officials. Deputy Prime Minister Luigi di Maio and leaders of the Five Star Movement want to push for the idea of a universal basic income and are willing to increase the budget deficit by 2.5% if necessary.
This goes against progress in communication between the EU and Italy’s new government regarding staying within spending limits and regulations. While overall the Euro-zone is improving, Italy being the third largest economy of the union coping with fiscal expenditures will remain a thorn on the Euro’s side.
The Pound is still at improved levels based on renewed positivity over the future of Brexit talks. A summit in Salzburg will witness all twenty seven EU leaders discuss the best way to maintain the U.K. as an ally and commercial partner after is EU membership ceases.
Additionally, data is aiding the push for Sterling with inflationary growth impressing. Per August Consumer price Index figures, prices increased by 0.7% above the half percent estimate.