“Despite this, there has been a longer-term slowdown in the often-dominant services sector since summer 2018. “The economy returned to growth in the month of May, following the fall seen in April. This was mainly due to the partial recovery in car production.” Meanwhile, the US dollar was little changed by the news that White House Economic Advisor Larry Kudlow said that the US and Chinese trade officials held a “constructive” phone conversation. This marked the start of a new round of trade talks after the two countries agreed to a truce. Mr Kudlow said the talks between US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer with Chinese Vice-President Liu He and Commerce Minister Zhong Shan “went well”.
He also added that they discussed a face-to-face meeting, however, he warned there would be no magic way to reach a deal, adding:
“There are no miracles here. There was headway last winter and spring, then it stopped. Hopefully, we can pick up where we left off, but I don’t know that yet.”
Looking ahead to this evening, the dollar could experience movement in reaction to the US FOMC minutes.
US dollar sentiment could be dampened if the Fed indicates rate cuts are on the way.