Dollar slips as Chinese comments marginally boost risk appetite By Reuters


© Reuters. FILE PHOTO: A woman counts U.S. dollar bills at her home in Buenos Aires

By Elizabeth Howcroft

LONDON (Reuters) – The dollar was marginally down on Friday and risk appetite boosted by statements from China on the need to find a solution to the tit-for-tat tariff war with the United States, raising hopes that a “phase one” deal could be reached.

Chinese President Xi Jinping said Beijing wants to work out a deal with Washington and has been trying to avoid a trade war – but is not afraid to retaliate when necessary.

A senior Chinese diplomat urged the United States to compromise in order to develop stable relations between the countries.

But after a week of mixed signals over the likelihood of a preliminary trade deal, the developments did little to move markets. Currencies continued to trade in tight ranges.

“While there are many trade headlines over the past few days, one can also argue that this is actually a ‘status quo’,” Commerzbank (DE:) FX and EM analyst Hao Zhou wrote in a note to clients.

“At the end of the day, there is little progress on trade talks, and it looks like both sides are fine with another delay of the phase 1 deal,” he wrote.

Against a basket of currencies, (), the dollar was down less than 0.1%, breaking its three-day streak of gains and heading for its smallest weekly change since the start of August this year.

The Swiss franc was down 0.2% against both the dollar and the euro (), suggesting market optimism as the Swiss franc is perceived as a safe-haven currency.

But the Japanese yen – also seen as a safe haven – was flat against the dollar .

The trade-exposed New Zealand dollar and Swedish crown were both up 0.2% against the U.S. dollar .

MUFG currency analyst Lee Hardman wrote in a note that low volatility and tight trading ranges are currently the key characteristics of the FX market.

German third quarter GDP data released earlier this morning held no surprises, showing that exports, state spending and consumers helped the German economy avoid a recession.

“Up to now, the slowdown in Germany has been concentrated in the manufacturing sector,” Daria Parkhomenko, forex strategy associate at RBC Capital Markets, wrote in a note to clients.

“Unless global uncertainties are lifted, which are weighing down on the manufacturing sector, it is only a question of when, not if, the weakness in manufacturing spreads to the rest of the economy,” she wrote.

The euro was slightly up against the weaker dollar ().

Flash eurozone PMI data were due at 0900 GMT.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Dollar keeps safe-haven bid amid trade ‘headline fatigue’ By Reuters



By Tom Westbrook

SINGAPORE (Reuters) – The dollar held overnight gains on Friday, as investors clung to the safe-haven pending developments in Sino-U.S. trade negotiations and amid a growing skepticism about reports of progress in the talks.

Movements were slight as investors also looked to a slew of global manufacturing surveys published later in the day for clues on how deeply the U.S.-China trade dispute is hurting the world’s economy.

The greenback crept higher against the Japanese yen to 108.58 yen and was steady against the euro () at $1.1064. Antipodean currencies were flat on the dollar, with the buying $0.6789 and the $0.6404.

Against a basket of currencies () the dollar last treaded at 97.993.

“Trade is the elephant in the room,” said Ray Attrill, National Australia Bank’s head of FX strategy, though he added that “headline fatigue has set in,” limiting volatility in the market’s reaction to new information.

Investors had earlier factored in the prospect that a partial truce could be agreed at a mid-November summit in Santiago. But that summit was canceled and the path forward is now unclear.

China will try hard to resolve the dispute, Commerce ministry spokesman Gao Feng told reporters on Thursday.

The Wall Street Journal also reported that top U.S. negotiators had been invited to Beijing for a new round of face-to-face talks, further raising hopes and risk appetite.

However trade experts and people close to the White House told Reuters that negotiations could slide into next year.

“With the constant barrage of seemingly contradictory stuff, the market’s given up trying to second-guess the next headline,” said Attrill. “We’ll trade it once we know what’s happening.”

China’s yuan, which is highly sensitive to trade news, was stable at 7.0303 per dollar in offshore trade .

Elsewhere, the rising dollar kept the British pound below $1.30, while a manifesto from the British Labour Party setting out radical plans to raise tax and nationalize infrastructure also weighed. Sterling last traded at $1.2916.

Purchasing managers indexes are due for Germany, the Eurozone, Britain and the United States later on Friday, offering a reading on the globe’s battered manufacturing sector.

“The current narrative has global growth slowing to year end,” said Michael McCarthy, chief markets analyst at brokerage CMC Markets in Sydney. “So the real potential is if we see surprises on the upside…it could have direct impact on Euro-U.S. dollar.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Hong Kong’s Wealthy Aren’t Giving Up on the City Just Yet By Bloomberg


© Reuters. Hong Kong’s Wealthy Aren’t Giving Up on the City Just Yet

(Bloomberg) — Is Hong Kong’s run as one of the world’s most important financial hubs coming to an end?

It’s an understandable question after one of the city’s most turbulent stretches since pro-democracy demonstrations erupted in June. The past few days have brought a drumbeat of bad news, raising concerns about the independence of Hong Kong’s judiciary, the future of its trading relationship with the U.S. and the prospect of more violence between police and protesters.

Yet interviews this week with investors, lawyers, bankers, diplomats and businesspeople suggest things will have to get significantly worse before Hong Kong’s moneyed classes give up on a city that has defied doubters time and again.

Optimists say that Hong Kong still offers a unique, if diminished, gateway between China and the rest of the world, and that both sides have too much riding on the city to stand by and watch it crumble.

That sanguine outlook may ultimately prove wrong, of course, and there are plenty of pessimists. But for all the talk of contingency plans and capital outflows, signs of a mass exodus have so far failed to materialize. Here’s what people have been saying about Hong Kong’s future:

Richard Harris, founder of Port Shelter Investment Management, who has been in the city for 50 years

There’s been no change to the taxation regime and there’s likely to be almost no change to corporate law. Those are the sort of things that impact businesses. I think in terms of Hong Kong’s economic framework, it’s still extremely good for doing business, and I can’t see how that would be changed by whatever’s happened.

Henry Kissinger, former U.S. Secretary of State, speaking at Bloomberg’s New Economy Forum in Beijing

I hope that the issue will be settled by negotiation that maintains the principles by which decolonization was carried out some period ago. I believe that this is possible, and it should be likely.

Bill Winters, CEO and executive director at Standard Chartered (LON:) Plc

Not much money has actually moved. We’ve seen clients open accounts in Singapore, Malaysia and Taiwan, in that order, but while the accounts were set up, not a lot of money has actually moved. We’re not seeing a crescendo.

The biggest impact of the Hong Kong protests by us has been on our staff. It’s been hard for them to get to work and there’s elements of stress with conflicts at home between people who disagree. We’ve been in Hong Kong 162 years, we’ve been through SARS, the financial crisis, and our business will keep going.

Ronnie Chan, Hong Kong-based chairman of Hang Lung Properties

I don’t think Hong Kong itself can resolve the situation. Every problem eventually will pass, and the same thing with Hong Kong, it’s just a matter of what form and shape it will be. Hong Kong will recover, how much can we recover is the question.

Fraser Howie, author of “Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise”

No one thinks China is about to collapse so there is a need still for a gateway and only Hong Kong offers that. Free flow of money, capital and people is all still possible in Hong Kong, and there still is a strong commercial law framework.

Hong Kong will be a thorn in Beijing’s side. How that escalation comes I am still unsure but there is no chance of going back. The Hong Kong bubble has popped and will not be re-engineered.

Stephen Innes, chief Asia market strategist at Axitrader Ltd.

After the constant weekend carnage in the streets, financial market concerns must play second fiddle to employer safety and welfare, so I can only assume relocation discussions are happening. When you think about it these days, most non-customer facing jobs are pretty much location-agnostic, so there is little holding back foreign businesses from possibly relocating a bulk of their staff.

Piyush Gupta, CEO of DBS Group Holdings Ltd., on clients slowly moving money to Singapore, the U.K. and other locations

People want an insurance policy on Hong Kong.

Phillip Hynes, head of political risk and analysis, ISS Risk

People were horrified by the violence of last week. But the protests couldn’t survive without sustainable support from the working class, and there’s a surprising amount of support from the middle class.

I’d caution against businesses establishing in Hong Kong now. My assessment of the protest movement is that it will continue for a long time; Hong Kong will never return to the Hong Kong it was before, it’s changed already. We’ve yet to see the impact of societal divisions created here. District elections may further polarize that.

Hong Kong will be an unwelcoming investment and business environment over the next few years, and very volatile.

Pauline Loong, a veteran China watcher and managing director at Asia-analytica in Hong Kong

Hong Kong will always have an international role regardless of political developments. But without confidence that its systems are not being subsumed into that vast opacity of mainland practices, its role would increasingly be confined to one of providing China-related services.

China is too big a market and Hong Kong too important a conduit for Chinese capital flows for anyone to make a move without a war plan on the scale of the invasion of Normandy, and that takes time.





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U.S. Dollar Slips After Fed Minutes; Sino-U.S. Trade Tensions in Focus By Investing.com


© Reuters.

Investing.com – The U.S. dollar slipped on Thursday in Asia after the release of the Federal Reserve meeting minutes. Tensions between the U.S. and China rose following reports that U.S. President Donald Trump might sign a bill that supports Hong Kong protesters.

China’s foreign ministry spokesman called the decision a blatant interference in China’s internal affairs, and said the U.S. faced “negative consequences” if it persisted.

The news added to jitters after Trump reiterated that he would raise tariffs if phase one of a trade deal with China is not signed. Traders had hoped the deal would have been signed at a summit in Chile scheduled for mid-November, but the deadline was left in limbo after the conference was cancelled.

CNBC reported earlier this week that Beijing is pessimistic about reaching an agreement with the U.S.

Meanwhile, minutes released on Wednesday showed Fed officials agreed that the stance of policy “likely would remain” where it is “as long as incoming information about the economy did not result in a material reassessment of the economic outlook.”

However, they also see “the downside risks surrounding the economic outlook as elevated, further underscoring the case for a rate cut” at the October meeting. They cited reduced business investment and exports resulting from “weakness in global growth and elevated uncertainty regarding trade developments.”

The was near flat at 97.785 by 12:59 AM ET (04:59 GMT).

“Friction between the United States and China is starting to spread from trade to questions about China’s human rights,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities Co in Tokyo.

“This is the perfect opportunity to book some profits and unwind some risk-on trades, which is supportive for the yen and government bonds.”

The pair was little changed at 108.58.

The pair slipped 0.1% to 0.6797, while the pair also fell 0.1% to 0.6413.

The pair inched up 0.1% to 7.0394.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Yen rises, yuan falls as U.S.-China trade deal this year looks unlikely By Reuters



By Stanley White

TOKYO (Reuters) – The yen rose against the dollar on Thursday after sources close to the White House told Reuters that a U.S.-China trade deal is unlikely this year, which spurred demand for safe-haven assets.

The yuan eased toward a two-week low in offshore trade as failure to reach a deal to roll back U.S. tariffs would cause a further slowdown in China’s economy and complicate efforts to keep growth on track.

Some traders are also wary of risk after U.S. lawmakers sent two bills intended to support protesters in Hong Kong to the White House for U.S. President Donald Trump to sign or veto.

Hong Kong has been rocked by months of increasingly violent protest against Chinese rule of the former British colony. If the bills are signed into law, that would anger Beijing and could make a resolution to the trade war more difficult.

“Friction between the United States and China is starting to spread from trade to questions about China’s human rights,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities Co in Tokyo.

“This is the perfect opportunity to book some profits and unwind some risk-on trades, which is supportive for the yen and government bonds.”

The yen rose 0.14% to 108.49 per dollar on Thursday.

The dollar weakened slightly to $1.1077 versus the euro () but held steady at $1.2923 against the British pound .

Completion of a “phase one” U.S.-China trade deal could slide into next year, trade experts and people close to the White House told Reuters on Wednesday, as Beijing presses for more extensive tariff rollbacks, and the Trump administration counters with heightened demands of its own.

Trump and U.S. Treasury Secretary Steven Mnuchin said in an Oct. 11 news conference that an initial trade deal could take as long as five weeks to ink.

Just over five weeks later, a deal is still elusive, and negotiations may be getting more complicated, trade experts and people briefed on the talks told Reuters.

Washington and Beijing have imposed tariffs on each other’s goods in a bitter dispute over Chinese trade practices that the U.S. government says are unfair.

The tariffs have slowed global trade, raised the risk of recession for some economies, and roiled financial markets.

The next date to watch is Dec. 15, when U.S. tariffs on some $156 billion in Chinese goods are scheduled to take effect.

, which like the yen is often bought as a safe-haven during times of uncertainty, rose 0.25% to $1,474.82 per ounce, underlining investors’ reluctance to take on risk.

In the offshore market, the yuan eased slightly to 7.0452 per dollar, close to the lowest in more than two weeks.

In addition to trade policy, Hong Kong has emerged as another flashpoint that some traders say could trigger a further worsening in U.S.-China relations, which raises doubts about whether the world’s two-largest economies can de-escalate their standoff.

What started as a protest against a proposed China extradition bill has widened into almost daily battles with the Hong Kong police over a perceived erosion of liberties under Chinese rule. The police have come under criticism of their tactics after one protestor was shot at close range.

Beijing denies meddling in Hong Kong’s affairs and blames foreign governments for fuelling the unrest.

Graphic: World FX rates in 2019, http://fingfx.thomsonreuters.com/gfx/rngs/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html





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U.S. Dollar Flat as Tensions With China Rise Over Hong Kong By Investing.com


© Reuters.

Investing.com – The U.S. dollar was flat on Wednesday ahead of the expected release of the Federal Reserve meeting minutes and as tensions between Washington and Beijing rose.

China took offense to the U.S. Senate passing legislation that backed Hong Kong protesters and would ban the export of items like tear gas and rubber bullets to the city’s police force, as conflict between the two sides escalated this week.

The news added to jitters after U.S. President Donald Trump reiterated that he would raise tariffs if phase one of a trade deal with China is not signed. Traders had hoped the deal would have been signed at a summit in Chile scheduled for mid-November, but the deadline was left in limbo after the conference was canceled.

The , which measures the greenback’s strength against a basket of six major currencies, was steady at 97.760 as of 9:56 AM ET (14:56 GMT) after rising to 97.920 earlier in the session.

Meanwhile, the Fed is expected to release the minutes from its October meeting, where it cut rates by 25 basis points for the third time this year.

The safe-haven Japanese yen was slightly lower with up 0.1% to 108.61.

Elsewhere, sterling was steady, with at 1.2918 while at 1.1075. The trade-sensitive Australian dollar was lower, with falling 0.1% to 0.6818.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Dollar rises as U.S.-China relations worsen over Hong Kong and tariffs By Reuters


© Reuters. FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration

By Elizabeth Howcroft

(Reuters) – The dollar rose on Wednesday and trade-exposed currencies fell after the U.S. president threatened a trade war escalation and China condemned a U.S. senate measure backing pro-democracy protesters in Hong Kong.

China’s yuan slipped to a new two-week low in overnight trading after U.S. President Donald Trump threatened to raise new tariffs on Chinese imports if ongoing trade negotiations fail.

China condemned the U.S. legislation aimed at protecting human rights in Hong Kong, saying that the U.S. should stop interfering.

After four days of falling, the dollar was up 0.1% against both the euro () and a basket of currencies. ()

“Today the main focus is the trade talks between China and the U.S. and we are seeing risk aversion,” said Piotr Matys, currency strategist at Rabobank.

Matys said that the U.S. senate’s bill in support of Hong Kong could complicate progress towards a preliminary trade deal.

Markets had hoped that a partial trade deal to end the 16-month U.S.-China trade war could be signed at a summit in Chile, which was scheduled for mid-November. The summit was cancelled, leaving the outlook for a deal unclear.

Adam Cole, chief currency strategist at RBC Capital Markets said that a preliminary “phase one” trade deal could be reached by the end of the year.

“The prospect of a broader more all-encompassing deal will drag on well into next year,” he added.

“The market is worrying (about) this sort of exogenous shock to the process by the build-up of tension in Hong Kong – I ultimately doubt that either side will allow that to delay the process,” Cole said.

The Canadian dollar fell against the U.S. dollar to its lowest since Oct. 11 after a speech by the Bank of Canada’s senior deputy governor boosted the perceived likelihood of a rate cut.

Trade-exposed currencies took a hit from the worsening U.S.-China relations. The Australian and New Zealand dollars were both down 0.4% versus the U.S. dollar , .

The Norwegian crown was down 0.9% versus the dollar and 0.7% versus the euro ().

The Swedish crown tracked these losses, but to a lesser extent, down 0.4% versus the dollar and 0.7% versus the euro ().

Demand for safe-have currencies was relatively unchanged, with the Japanese yen up around 0.1% against the dollar and the Swiss franc flat around 0.9905 .

Minutes from the U.S. federal reserve’s FOMC meeting in October are due at 19.00 GMT. Analysts expect little impact.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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HSBC Says British Pound May Soar. Or Crash By Bloomberg



(Bloomberg) — Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.

The outcome of Britain’s election next month poses a binary choice for the nation’s currency, according to the largest U.K. bank.

“Nothing is priced in,” said David Bloom, global head of foreign-exchange strategy at HSBC Holdings Plc (LON:), in an interview with Bloomberg Television from Doha. “The political outcome will determine the future of the currency.”

An election result that paves the way to a U.K.-European Union deal on Brexit could send the pound up to $1.45 by the end of next year. Or a no-deal Brexit could see it tumble to $1.10, from just below $1.30 now.

Any resolution is good, Bloom said, either it be another referendum or a Brexit deal. Political wrangling will start to ebb away, the economy could get a fiscal boost and the Bank of England could start considering rate increases. The reverse could see recession fears flare.

Among three election scenarios, a hung parliament — where neither Prime Minister Boris Johnson’s Conservatives nor opposition leader Jeremy Corbyn’s Labour party gets a majority — would be the worst for the currency, Bloom said.

In that case, there would be no majority of lawmakers in favor of a fresh referendum on Brexit, nor favoring any specific Brexit deal. “We could be back in the mud” and “lost in the wilderness.”

While polls suggest a Conservative majority now, the voting scenarios for the Dec. 12 elections are complex, according to Bloom.

“It’s still completely open — anything can happen,” the strategist said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Furor erupts in Italy over euro zone bailout fund reform By Reuters



By Giuseppe Fonte and Gavin Jones

ROME (Reuters) – Proposals to reform the euro zone’s bailout fund are creating a political storm in Italy, where parties and institutions are battling over whether Rome should try to block the reform at the EU level.

A draft of the reform was agreed by euro zone finance ministers in June and is due to be finalised by leaders next month, but senior Italian officials, including its central bank chief, have warned some measures are financially dangerous.

In particular, they are against proposals that would make it easier to restructure euro zone sovereign bonds in the event of a financial crisis.

This would involve turning the bailout fund, known as the European Stability Mechanism (ESM), into a sort of European Monetary Fund that would make support for countries in financial crisis conditional on them restructuring their debt.

The ESM threatens to be yet another source of tension in Prime Minister Giuseppe Conte’s government, which is already divided over issues such as taxation policy, justice reform and immigrant rights.

Conte is not resigned to signing off on the draft, and is working on amendments to propose to its EU partners, a government source told Reuters on Monday.

But the main opposition party, the hard-right League, says the government is trying to sign off on it secretly and has demanded that Conte addresses parliament.

“Approving the ESM changes would mean ruin for millions of Italians and the end of our national sovereignty,” League leader Matteo Salvini said on Tuesday in a tweet.

Conte accused the League of hypocrisy, pointing out that the draft of the reform was negotiated while the League was in power in a previous coalition that collapsed in August.

It is not only the political opposition that is concerned over the reform.

Bank of Italy Governor Ignazio Visco said last week that introducing a debt restructuring mechanism carried a “huge risk” and could “trigger a perverse spiral of expectations of default, which may prove to be self-fulfilling”.

Prominent economists, including Carlo Cottarelli, a former International Monetary Fund and Italian government official, have expressed similar concerns, and the issue now also threatens to divide the government.

Economy Minister Roberto Gualtieri, from the center-left Democratic Party (PD), said in a television interview on Monday the reform carried no reasons for concern and described the political furor as “a storm in a teacup”.

However, lawmakers in the anti-establishment 5-Star Movement, the PD’s coalition partner, disagreed.

5-Star’s members of the Chamber of Deputies Finance committee said on Tuesday the reform talks had taken a dangerous turn for Italy and asked for a meeting of the ruling coalition.

“We are not in agreement with the reform of the ESM,” they said in a statement.

Gualtieri said on Tuesday he would answer questions on the matter in testimony to the Senate finance commission on Nov. 27.





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Dollar steadies after 3 days of losses as trade deal hopes dim By Reuters


© Reuters. A man displays US dollar notes after withdrawing cash from a bank in Harare

By Saikat Chatterjee

LONDON (Reuters) – The dollar stabilized against a broad basket of other currencies on Tuesday after three consecutive days of losses as investors waited for the release of the minutes of the U.S. central bank meeting at end-October when policymakers had cut interest rates.

Global macro hedge funds had ramped up their dollar selling for a third week according to latest weekly positioning data and some market watchers say hawkish policy minutes could trigger a dollar rebound.

The greenback has hit a trough since late last week as hopes for a preliminary trade deal between the United States and China evaporated.

Expectations had grown that Washington and Beijing would sign a so-called “phase one” deal this month to scale back their 16-month-long trade war but those hopes received a setback on Monday after CNBC reported China is pessimistic about agreeing to a deal, which suggests a resolution to perhaps the biggest risk to the global economy remains elusive.

“Trade headlines is dominating sentiment but in terms of the key event risk, the release of the Fed minutes will be a big one for market participants,” said Morten Lund, a senior FX strategist at Nordea.

Against a basket of its rivals (), the greenback was broadly steady at 97.84 after weakening more than 0.6% in the last three sessions. It had hit a one-month high of 98.45 on Nov. 13.

Elsewhere in the currency market, the Australian dollar fell 0.16% to $0.6799 and declined 0.26% to 73.82 yen ().

Australia’s central bank “agreed a case could be made” for another cut in the 0.75% cash rate at its November meeting given unwelcome weakness in wages growth and inflation, minutes published on Tuesday showed.

Sterling held firm around $1.2950 with the pound buoyed by polls pointing to a victory by the ruling Conservatives in upcoming elections.

In the onshore market, the yuan fell to a two-week low of 7.0295 per dollar.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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