US Dollar Struggles for Direction on Mixed Data, US-China Trade Worries

The US dollar is struggling for direction midweek after a wide range of economic data was mixed. The greenback is also seesawing against a myriad of other currencies on uncertainty over phase one of a US-China trade agreement. The buck is looking to extend its gains to close out the year after climbing more than 2% so far in 2019.

According to the US Census Bureau, the trade deficit tumbled 6% to $66.5 billion in October, up from $70.5 billion in November. This beat market expectations of $70.3 billion. The US is still on track to record the biggest trade deficit since 2008 as imports slumped 2.5% and exports dropped 0.7%.
Wholesale inventories climbed 0.2% in October, up from the 0.7% slide in September.
Consumer confidence has diminished at a crucial time when shoppers are heading to the stores – physical and digital – for the holiday season. The Conference Board’s consumer confidence index declined from 126.1 in September to 125.5 in October, which represents the fourth monthly decrease. The market had penciled in a reading of 128.2.
Housing data was mixed. October new-home sales slipped in October to a seasonally adjusted annual rate of 733,000, the Federal Housing Finance Agency’s House Price Index for September climbed 0.6%, and the Case-Shiller home-price index for September edged up 0.1%.
Meanwhile, on the trade front, Beijing and Washington officials have signaled that they are finalizing a partial trade deal that tackles some of the less pressing matters. But investors are concerned because a new round of US tariffs on Chinese goods is due on December 15. Top Chinese and US trade representatives have agreed on further talks to establish a preliminary phase one deal, China’s Ministry of Commerce verified.
President Donald Trump noted at the White House on Tuesday that both sides are in the â€œfinal throes” of coming up with a trade deal.
The US Dollar Index rose 0.04% to 98.29, from an opening of 98.25.
The USD/CAD currency pair dipped 0.07% to 1.3264, from an opening of 1.3272, at 12:36 GMT on Wednesday. The EUR/USD fell 0.16% to 1.1004, from an opening of 1.1023.

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Original from: www.earnforex.com