U.S. Dollar Weakens On Escalating Trade Worries
18 Juin 2018 - 11:16AM
RTTF2
The U.S. dollar dropped against its most major counterparts in
the European session on Monday, as concerns of a trade war
intensified after the U.S. and China announced tit-for-tit tariffs
on imports.
On Friday, the U.S. President Donald Trump imposed a 25% tariff
on around $50 billion of Chinese imports, raising worries about the
prospect of a trade war between the world's two largest
economies.
Trump said that tariffs were being introduced "in light of
China's theft of intellectual property and technology and its other
unfair trade practices."
China hit back by imposing a 25 percent tariffs on $34 billion
exports from the U.S., which included agricultural products and
vehicles.
The U.S. NAHB housing market index for June is due at 10:00 am
ET. Economists expect the index to remain unchanged at 70.
Fears of a global trade war as well as expectations that major
oil producers will soon start to increase supplies weighed on oil
prices.
The currency held steady against its major rivals in the Asian
session, with the exception of the yen.
Having advanced to near a 4-week high of 0.9990 against the
franc at 3:15 am ET, the greenback dropped to a 4-day low of
0.9943. On the downside, 0.97 is possibly seen as the next support
level for the greenback.
The greenback reversed from an early high of 1.1565 against the
euro, falling to 1.1624. The greenback is poised to challenge
support around the 1.17 level.
The greenback retreated to 1.3264 against the pound, from an
early high of 1.3226. Next key support for the greenback is likely
seen around the 1.34 level.
Data from property tracking website Rightmove showed that the
average asking price for a house in the United Kingdom was up 0.4
percent on month in June.
That followed the 0.8 percent increase in May.
The greenback pulled away from an early 1-year high of 1.3207
against the loonie and fell to 1.3159. The greenback is seen
finding support around the 1.30 region.
The greenback eased to 0.6956 against the kiwi and 0.7455
against the aussie, from its early near a 3-week high of 0.6920 and
a 1-1/2-month high of 0.7426, respectively. The next likely support
for the greenback is seen around 0.71 against the kiwi and 0.76
against the aussie.
The greenback held steady against the yen, after having fallen
to a 4-day low of 110.30 at 9:45 pm ET. The pair was valued at
110.64 when it had closed deals on Friday.
Data from the Ministry of Finance showed that Japan posed a
merchandise trade shortfall of 578.321 billion yen in May.
That missed expectations for a shortfall of 205.2 billion yen
following the downwardly revised 624.6 billion yen surplus in
April.
US Dollar vs Yen (FX:USDJPY)
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US Dollar vs Yen (FX:USDJPY)
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