FOREX-Euro pinned at more than two-year lows; sterling drops
Frankfurt (Sept 27) - The euro held at its lowest level in more than two years on Friday as quarter-end rebalancing flows boosted demand for the dollar, with investors unfazed by the latest political news out of the United States.
The euro fell 0.1% lower to $1.0904, its lowest level since May 2017. Against a basket of its rivals , the greenback pushed 0.1% higher to 99.27, its highest level in more than three weeks.
"Some corporate demand in the last few days seems to be boosting the dollar but our models show there should be net selling later in the day due to rebalancing flows," said Manuel Oliveri, a currency strategist at Credit Agricole in London.
Sterling was the other big loser in early London trading after Bank of England policymaker Michael Saunders hinted at looser monetary policy if Brexit uncertainty remained prolonged against a backdrop of disappointing global growth.
The pound weakened 0.3% to a new two-week low of $1.2285 on Friday as his comments raised expectations that the next move from the central bank could be a rate cut. Markets are also digesting the impeachment probe launched into U.S. President Donald Trump and the latest headlines from the trade dispute between the United States and China.
A whistleblower report released on Thursday said Trump not only abused his office in attempting to solicit Ukraine's interference in the 2020 U.S. election, but the White House tried to "lock down" evidence about it.
China's top diplomat said Beijing was willing to buy more U.S. products. CNBC reported that trade war talks were on track and scheduled for Oct. 10-11 in Washington, citing people familiar with the arrangements.
Elsewhere, the dollar eased against the trade-sensitive Australian and New Zealand dollars , which gently rallied on hopes that next month's U.S.-China trade talks will bring progress. Moves were slight, though and neither strayed far from two-week troughs against the greenback.
"A one word description of currency markets trading today: moribund," said markets strategist Michael McCarthy of brokerage CMC Markets in Sydney.
Reuters
