US dollar holds steady after Trump-Kim meeting as pound weakens

The US dollar dipped slightly in early trading today, but held off any major losses after the meeting between US President Donald Trump and North Korean Leader Kim Jong-Un failed to reach a concrete outcome.

The greenback slipped .01 per cent on the ICE US Dollar Index (DXY), which measures the buck against six major currencies.

However, the dollar was up .2 per cent against the Japanese Yen, and rose .08 per cent against the Euro in early trading.

Ken Odeluga market analyst at City Index said: “The long-term importance of the Korea-US summit is obvious but the event itself was always going to be something of a sideshow.

“All eyes were on the topic of denuclearisation, and, just as importantly facilities to verify that, but whilst North Korea’s Kim Jung Un reaffirmed 'unwavering' commitment to the aim, agreements appeared vague and their scope limited.”

Meanwhile, the pound has continued to sag, down .06 per cent to trade at $1.3371 against the dollar.

Sterling had gained earlier in the day following figures from the Office for National Statistics (ONS) which showed unemployment at record lows.

However, the ONS figures also showed a drop in wage growth, and the British currency paired back its early gains later in the day.

Odeluga added: “Having evaded pressure from slightly disappointing wage data, sterling was beginning to crack.

“A severely battered rising trend line has now been destroyed despite the pound having tacked on almost 80 pips from lows.

“The bulk of the pound’s event risk for the week remains ahead, including a parliamentary vote on PM Theresa May’s dreaded “meaningful” Brexit Bill amendments, Wednesday’s UK Consumer Price Index and the European Central Bank meeting.”

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