Dollar Slips as Chinese Growth Data Bolsters Risk Appetite – Investing.com

The US dollar edged lower on Thursday as Chinese economic data boosted risk sentiment. According to Investing.com, the greenback was down against a basket of other currencies with the US Dollar Index falling 0.1% to 97.50 by 10:00 AM ET (14:00 GMT).

China’s economy grew 6% year-on-year in the third quarter, beating expectations and showing signs that it is recovering from its coronavirus slump earlier this year. The news helped boost global stocks and commodities prices while weighing on safe-haven assets, such as gold and bonds, which tend to benefit when investors are feeling uncertain about their investments or worried about future market volatility.

Meanwhile, traders were also keeping an eye out for developments surrounding Brexit negotiations between Britain and European Union officials ahead of Sunday’s deadline for a trade deal agreement before the end of 2020 transition period ends at midnight local time (2300 GMT). So far, no progress has been made but both sides remain hopeful that they will be able to reach an agreement before then to avoid costly tariffs being imposed next year if no deal is reached in time.

Overall, investor sentiment remained cautiously optimistic despite some lingering uncertainty over unresolved issues such as Brexit talks due later today, the US stimulus package stalemate, and rising Covid-19 cases across Europe. All eyes will be focused on these events moving forward, which could have significant implications for financial markets around the world.