US Dollar Remains Steady Following Meeting Between Trump & Kim as Pound Weakens

Advertisment

In early trading last Tueday, the US dollar dipped slightly, however, it held off any major losses following the meeting between North Korean Leader Kim Jong-Un and US President Donald Trump that was not able reach a concrete result.

The greenback dtopped by  0.01 percent on the ICE US Dollar Index (DXY), which measures the dollar against six of the major currencies in the world.

However, the dollar was up 0.2 percent against the Japanese Yen, and increased by 0.08 percent against the Euro during early trading.

A market analyst at City Index. Ken Odeluga, stated: “The long-term importance of the Korea-US summit is obvious but the event itself was always going to be something of a sideshow.

“All eyes were on the topic of denuclearisation, and, just as importantly facilities to verify that, but whilst North Korea’s Kim Jung Un reaffirmed ‘unwavering’ commitment to the aim, agreements appeared vague and their scope limited.”

Meanwhile, the pound has proceeded to sag down by 0.06 percent to trade at $1.3371 versus the dollar.

Earlier in the day, the sterling had gained following the figures that were released by the Office for National Statistics (ONS) which revealed that the unemployment is at record lows.

However, the figures from the ONS also revealed a decline in wage growth, and the British currency paired back the early gains that it was able to achieve later in the day.

Odeluga continued: “Having evaded pressure from slightly disappointing wage data, sterling was beginning to crack.”

He added: “A severely battered rising trend line has now been destroyed despite the pound having tacked on almost 80 pips from lows.

“The bulk of the pound’s event risk for the week remains ahead, including a parliamentary vote on PM Theresa May’s dreaded “meaningful” Brexit Bill amendments, Wednesday’s UK Consumer Price Index and the European Central Bank meeting.”