The world’s safe-haven asset, gained some grounds as the U.S. Dollar Index that monitors the greenback against a bouquet of major global currencies was up 0.03% to 97.017 at 5.39 am Nigerian local time.
The U.S dollar showed some stability at London’s trading session after a previous surge when White House trade advisor Peter Navarro made some assuring statements concerning the Chinese-American trade pact.
Currency traders and Investors rushed spontaneously to the U.S dollar after Navarro’s initial comments concerning the U.S.-China trade deal only to slowly retract most of it after the clarifications made by him.
Global investors and currency traders were taken on a roller-coaster ride at the previous trading session after White House trade advisor said that the deal was “over” on Monday, only to issue a clarification shortly afterward stating that his comments had “been taken wildly out of context.”
U.S. President Trump boosted investors’ optimism after he tweeted that the deal was “still intact.”
Daisuke Uno, the chief strategist at Sumitomo Mitsui Bank, told Reuters, “It’s not clear exactly what is over, but today’s market reaction suggests that after riding on optimism on the economy, markets are now ready to test the pessimistic side of the story,” referring to Navarro’s earlier comments.”
