The New York (Reuters) -American dollar increased on Tuesday and bounced off the six -day minimum against the euro, although investors remained concerned about potential economic damage to the trade war conducted by President Donald Trump.
“We had a big selection in the dollar and we should jump a little back today … I don’t think there are many new news that would be said to have turned the dollar in any meaningful way,” said Marc Chandler, Bannockburn Global Forex LLC.
“I would say that the reflection is still quite limited, quite limited,” he said.
The dollar increased by 0.9% against Yen at 144.00. Euro dropped by 0.6% to $ 1.1371 when a six -day maximum maximum of $ 1.1454. Previously, the data has shown that inflation in the euro area zone slowed down under the aim of the European Central Bank of 2%, which is justified expectations of reducing rates at the end of this week.
In a year, the dollar decreases by 9% against the euro.
While global stock markets have been widely recovered from early April as a result of the re -re -re -saga of Trump’s tariffs, Greenback remains under pressure.
American duties for imported steel and aluminum are started on Wednesday 50%, on the same day that Trump’s administration expects the country to submit its best offers in business negotiations.
Trump and Chinese President Xi Jinping probably soon called to endure the trade differences, said Finance Minister Scott Bessnt on Sunday, although on Monday an angry rejection from the Chinese business ministry of US accusation that Beijing violated their business agreement.
“Business developments remain key. News suggest that China is gaining leverage through the US by checking the supply chains of chips and rare countries,” said Francesco Pesole.
“Trump and Xi JinPing are ready to speak this week, and past direct conversations have ever alleviated tension. This leaves space for a positive surprise that the dollar could help at some point this week,” he said.
On Tuesday, the data showed us that in April the openness of jobs increased, but the redundancies disappeared in accordance with the slowing labor market in accordance with the damped economic outlook due to tariffs.
Federal reserve officials on Tuesday re -argued carefully monetary policies, as Trump’s trade war continues to put a significant amount of uncertainty and the risk of economic weakness into the outlook.
Fiscal worries also led to the wide topic of “sale of America”, which in recent months fell to treasury bonds from shares from shares to bonds of the Ministry of Finance.
These concerns are sharply focused on this week when the Senate begins to consider an administrative tax reduction and expenditure, it is estimated that in the next decade it has been adding $ 3.8 trillion to $ 36.2 trillion.
Nevertheless, the foreign -currency traders are located for the US currency to further weaken.
The British pound was 0.2% lower on Tuesday to $ 1.3519, a number of Bank of England speakers and long -term government bonds that can offer investors’ confidence in British finance.
Bitcoin, the largest cryptocurrency in the world according to market capitalization, was 1.2% higher on $ 106,219.
(Report Saqib iqbal Ahmed; further reports of Amanda Cooper and Rocky Swift; Editing David Evans, William Maclean and Nia Williams)
(Tagstotranslate) US DOLLAR (T) Trade War (T) Trump Administration (T) Euro Zone Inflation (T) Federal Reserve System
