The US dollar is shaping up to be the most reliable currency on the Forex market today. The USD is rising in price, even amid a lack of significant fundamental reports from the United States. Analysts agree that the interest in the dollar is likely inspired by risk aversion.
Traders are keeping an eye on the trade conflict between the US and China, as any news pertaining to the two countries’ negotiations have a strong impact on the markets. US Treasury Secretary Steve Mnuchin confirmed that China and the United States will begin negotiating again in early October.
However, investors are cautious about the prospect of the two sides reaching a trade agreement. This sentiment is prevailing over the initial optimism of the markets, and now is prompting more interest in safer assets, such as the dollar and the yen. The US dollar index climbed to 98.28 today.
In other news, today we are waiting for an announcement from the Supreme Court of the United Kingdom regarding whether Boris Johnson’s decision to prorogue Parliament was undemocratic. If the Supreme Court finds Johnson guilty, there is a high chance for Parliament to be recalled and for more Brexit developments to ensue. The British pound is currently low, trading near 1.2435.
