The US dollar held near 3-month highs against the euro today. It benefitted from sustained strength in core U.S. inflation and weak data out of Europe.
Although the headline U-S inflation growth recorded its weakest pace in 1-1/2-years in January, traders focused on the core price gauge. So-called core CPI, which excludes volatile food and energy prices, was up 0.2 per cent.
Meanwhile, broad risk appetite in financial markets has been on the uptick in the past couple of days. Traders are expecting for a breakthrough in the trade impasse between the U-S and China. Further boost was given when U.S. President Donald Trump said that talks with China were “going along very well” as they try to resolve the tariff dispute ahead of a March 1 deadline.
And in New Zealand, the Kiwi gained some support after the country’s central bank said it expected to leave interest rates at their current levels for the rest of 2019 and all of 2020.