USD/SGD rises as the indicators disappoint the market.
Evergreen buck revives on probable American tariff exemptions
On Thursday, the evergreen buck revived, getting support from upbeat labor market data as well as the White House telling that Mexico and Canada and also other countries, might dodge planned American import tariffs on aluminum and steel.
Additionally, on the FX markets, the common currency trod water prior to a European Central Bank gathering, which is generally anticipated to leave policy rates intact, while probably providing clues to the future.
The major US currency had slumped abruptly reacting to Tuesday’s resignation the leading economic advisor to the White House, Gary Cohn who was considered to be a strong opponent of protectionism in the Trump administration.
Apparently, his departure had strengthened fears of a probable global trade conflict if Trump proceeded with proposals for duties on all imports of such metals as aluminum and steel.
As for broader financial markets, they were relatively calm, with Wall Street paring drops overnight, right after the US government increased the overall possibility of exemptions. Moreover, some dealers have even bet on the likelihood that the tariff threat turned to be a negotiating ploy in trade negotiations with neighbors.
Trump intention to provide Canada and Mexico with a 30-day exemption from planned duties on aluminum and steel imports that could be expanded built around progress in negotiations on amending the North American Free Trade Agreement, as a White House representative told on Wednesday.
The greenback’s revival was powered by Wednesday's data on American private hiring as well as labor costs, which backed the view of underlying strength in the US economy.
The evergreen buck stood still, sticking to 106.040 yen, having dived to 105.450 yesterday, reacting to Cohn's departure.
Versus a basket of six crucial currencies the US dollar index stood still being worth 89.585, drifting away from a two-week dip of 89.407 yesterday.
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