Euro falls with investors cautious about U.S.-China trade talks

Monday,   20-Aug-2018   02:44 PM (IST)

The euro slipped on Monday as the dollar gained ahead of proposed trade talks between the United States and China this week that investors hope will ease tensions between the world's two biggest economies.Anticipated talks between Chinese and U.S. officials in Washington will take place in the next few days, according to media reports. Analysts say those attending will be lower-level officials, although hopes are high that the talks could yield a breakthrough in the months-long trade conflict.Escalating trade tensions between the United States and its trading partners, in addition to a plunge in the Turkish lira, have boosted the dollar and taken a heavy toll on emerging market currencies.The euro fell 0.2 percent to $1.1421 but was still above 2018 lows of $1.3010 hit last week. The euro slid to a 13-month low early last week amid concerns that the Turkish crisis could hurt European banks.The dollar index rose 0.2 percent to 96.248 (DXY). Traders are also preparing for the release of Federal Reserve policy meeting minutes later this week and the Jackson Hole symposium for insights into the likely direction of U.S. monetary policy.