On Wednesday, the safe haven yen managed to strengthen and the evergreen buck dived to two week minimums versus a group of basic currencies because the resignation of Donald Trump’s top notch economic advisor drove worries as for a rising trade conflict.
The currency pair USD/JPY slumped 0.41% hitting 105.68, which is not far from an overnight minimum of 105.46.
Financial markets were affected by a storm of selling following news, according to which Gary Cohn resigned from his post of the National Economic Council director having failed to convince Donald Trump not to impose his duties on aluminum and steel imports into America.
Cohn's resignation drove worries that the Trump administration is going to provide enough room to run a protectionist agenda and also increased the chances of a full-blown trade feud.
Market participants are afraid that the newly-imposed duties could potentially power inflation and cause retaliation from American trade partners. Key holders of American Treasuries, including the European Union and China, could cut their holdings of American assets in response.
Taking the gauge of the US dollar’s strength versus a group of six main rivals, the US dollar index hit 89.52 having hit a two-week minimum of 89.38 overnight.
The common currency was hovering over three-week maximums, with EUR/USD showing 1.2413.
The British pound was a bit lower, the currency pair GBP/USD went down 0.08% being worth 1.3874.
As for the Canadian dollar, it headed south, with USD/CAD gaining 0.36% being worth 1.2922 as market participants shifted their attention to a Bank of Canada interest rate verdict later in the day.
The Bank of Canada told that uncertainty regarding the future of the North American Free Trade Agreement is putting much pressure on the outlook for the Canadian economy.
Canada’s major financial institution is highly anticipated not to alter its benchmark interest rate, leaving it at 1.25%.
American multinational companies get down to reevaluating their currency hedging strategies following a leap in the evergreen buck for recent months because the impact of the stronger US currency starts influencing second-quarter corporate profits…
On Wednesday, the British pound headed south to the lowest value for 10 months versus the broadly stronger greenback because suddenly dismal British inflation data decreased chances for an August rate lift by Britain’s key financial institution…
On Wednesday, the evergreen buck managed to jump because Fed Chair Jerome Powell came up with an upbeat assessment of the American economy at his Tuesday’s semi-annual congressional testimony…
In February, Japan's exports probably ascended at the fastest pace for two years due to a softer yen as well as improving global demand, as a Reuters survey showed on Friday…
On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…
On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…
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