The safe-haven Swiss Franc received an upswing in support on Wednesday following reports that US-China trade negotiations had ‘hit a snag’ over farm purchases.
Citing sources familiar with the matter, the Wall Street Journal revealed talks stalled as Beijing expressed it did not want a one-sided deal in favor of Washington.
The report came just after US President Donald Trump’s speech in which he said a trade deal with China was ‘close’ but offered no further details and also threatened to ‘substantially’ increase tariffs on Chinese goods.
Sterling (GBP) Slumps as UK Inflation Falls to Three Year Low
The Pound was left flat against the Franc on Thursday, despite the upswing in political optimism that offset the slew of disappointing economic data.
At the start of the week, data showed the number of Britons unemployed increased, and average earnings growth disappointed.
Added to this, the data revealed that the UK’s inflation rate dropped to a three-year low which has likely increased the pressure on the Bank of England (BoE) to make its next move a cut rather than a hike.
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