· The greenback rose to a one-week high against the euro on Friday as economic data pointed to solid economic growth, and reduced fears about an impending slowdown.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.624 after seeing a spike from levels below 97.4 on Friday.
U.S. homebuilding surged to a 13-year high in December as activity increased across the board, suggesting the housing market recovery was back on track amid low mortgage rates.
It comes after data on Thursday showed that U.S. retail sales increased for a third straight month in December, while a gauge of manufacturing activity in the U.S. Mid-Atlantic region rebounded in January to its highest level in eight months.
The euro EUR= fell 0.41% against the dollar to $1.1089.
The Japanese yen was little changed on the day, after weakening earlier on Friday as record high stocks reflected stronger risk appetite.
The yen rose hit 110.28, the weakest since May, before falling back to 110.12.
The offshore Chinese yuan CNH= also strengthened as far as 6.8567, the strongest since July.
· US-China trade deal to reduce global uncertainty: IMF chief
The newly signed US-China phase-one trade deal will reduce the uncertainty that has impeded global economic growth, according to the International Monetary Fund (IMF) Managing Director Kristalina Georgieva.
Georgieva said, “It is a welcoming sign that we now have the phase-one deal, sign in terms of reducing some of the uncertainty,” during an event hosted by Peterson Institute for International Economics, a Washington-based thinktank.
The IMF chief said her organisation is making some projections around the impact of more certainty, which will be shared on Monday as part of the World Economic Outlook to be released at the World Economic Forum in Davos, Switzerland, Xinhua reported.
· Democratic U.S. lawmakers leading the impeachment case against Republican President Donald Trump said on Saturday the president must be removed from office to protect national security and preserve the country’s system of government.
In a 111-page document filed before Trump’s Senate trial begins in earnest on Tuesday, the lawmakers laid out their arguments supporting charges of abuse of power and obstruction of Congress against the president.
· Prime Minister Boris Johnson will call for deeper investment ties between Britain and Africa at a summit for leaders of 21 African countries on Monday that comes days before his country will leave the European Union.
After securing Britain’s departure from the EU, the world’s largest trading bloc, on Jan. 31, Johnson is keen to develop business ties with countries outside Europe.
· Oil prices steadied on Friday as sluggish economic growth in China, the world’s biggest crude importer, raised concerns over fuel demand and countered optimism from the signing of a China-U.S. trade deal.
Brent crude LCOc1 futures rose 23 cents to settle at $64.85 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 2 cents to settle at $58.54 a barrel.
For the week, Brent fell 0.2%, while WTI lost 0.8%
China’s economy, the world’s second-largest, grew by 6.1% in 2019, its slowest expansion in 29 years, government data showed on Friday.
“Mounting downward economic pressure will perhaps limit oil’s upside in the mid- to long-term,” said Margaret Yang, market analyst at CMC Markets.
Reference: CNBC, Reuters, The Nation
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