Market sentiments improved overnight; the US and China have agreed to resume face-to-face negotiations in a bid to ease tensions in their rapidly escalating trade war. Both nations will hold trade talks in Washington early next month, according to a statement released by China’s Commerce Ministry.
The Canadian dollar strengthened to fresh session highs, breaking below 1.3200 levels this morning. The recent gains were mainly driven by a less dovish Bank of Canada stance in yesterday’s meeting, as well as higher WTI oil prices.
Data published by the Automatic Data Processing (ADP) showed that employment in the private sector in August increased by 195,000 against market expectation of 148,000. The Dollar Index was trading slightly higher at 98.25 levels after the release.
New York Federal Reserve President John Williams said that the US economy looks weaker than previously thought and acknowledged that sluggish inflation is one of the central bank’s most pressing issues.