Forex - U.S. Dollar Slips as Euro Still Lifted by Brexit Deal

18 October 2019, 16: 14
© Reuters.

The U.S. dollar was lower against other currencies on Friday, while the euro was buoyed by hope that a Brexit deal will help mitigate risks of a recession in the bloc.


U.K. Prime Minister Boris Johnson made a deal with the EU on Thursday, which hinges on Northern Ireland applying a limited set of EU rules on some goods, with the U.K. only charging EU tariffs on goods passing through to EU markets.

The deal now must be passed by the British Parliament on Saturday. However, Northern Ireland's Democratic Unionist Party said it is opposed to the proposed agreement, making it uncertain if the deal will be approved.

GBP/USD inched up 0.1% to 1.2897 as of 10:56 AM ET (14:56 GMT) while EUR/USD was up 0.2% to 1.1139.

Meanwhile the U.S. dollar dipped, as traders remained cautious after data showed the impact of the trade war has taken its toll on China.


China’s gross domestic product grew 6% annually in the third quarter, which was the slowest rate in 30 years. The news comes on the back of China trying to get more concessions from the U.S. before it signs a temporary phase 1 deal agreed on last week.


The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.2% to 97.172.


Elsewhere, the Turkish lira surged 1.4% to 0.1728 against the dollar after a five-day ceasefire against the Kurds in Syria was agreed on between President Recep Tayyip Erdogan and U.S. Vice President Mike Pence. However, reports have surfaced that the ceasefire may have already been broken.