FOREX TradingCharts.com

Forex News: U.S. Dollar Falls As Trade Row Flares Up

U.S. Dollar Falls As Trade Row Flares Up After China Vows Countermeasures

08/02/2019 - 06:39:00 (RTTNews)

(RTTNews) - The U.S. dollar declined against its major counterparts in the early European session on Friday, as the U.S.-China trade row intensified after Beijing threatened to impose countermeasures if Washington goes ahead with its planned tariff hike.

China's Commerce Ministry said that it would take appropriate countermeasures to resolutely defend its core interests.

Beijing's announcement came in retaliation to Trump's decision to impose 10 percent tariffs on $300 billion in Chinese imports, starting September 1.

The additional tariffs will cover almost all the goods imported from China into the United States.

Trump's decision came after stalled trade talks in Beijing, with U.S. President blaming Chinese President Xi Jinping for breaking his promise to buy US agricultural goods.

The monthly U.S. jobs report is in focus, with employment is expected to have climbed by 164,000 jobs in July after increasing by 224,000 jobs in June.

The unemployment rate is expected to hold at 3.7 percent.

The currency dropped against its major counterparts in the Asian session, with the exception of the pound.

The greenback declined to a 2-day low of 1.1115 against the euro, from a high of 1.1070 seen at 10:30 pm ET. On the downside, 1.14 is possibly seen as the next support level for the greenback.

Data from Eurostat showed that Eurozone producer price inflation eased notably in June largely due to weak energy prices.

Producer price inflation slowed to 0.7 percent in June from 1.6 percent in May. The rate was below the forecast of 0.8 percent.

The greenback depreciated to an 8-day low of 0.9853 against the Swiss franc, down from Thursday's closing value of 0.9903. The greenback is seen finding support around the 0.96 level.

The greenback dropped to 106.79 against the yen for the first time since June 25. Next immediate support for the greenback is seen around the 104.00 level.

The minutes from the Bank of Japan's monetary policy held on June 19 and 20 showed that policymakers discussed further easing as most members shared the view that it was appropriate to persistently continue with the powerful monetary easing.

"The key to overcoming deflation was for the Bank to maintain its stance of taking some kind of policy response if any changes emerged in the baseline scenario of the outlook for prices," the minutes said.

The greenback pulled back to 1.2135 against the pound, from an early high of 1.2089. If the greenback declines further, it may find support around the 1.27 level.

Survey data from IHS Markit showed that the UK construction sector continued to shrink in July.

The IHS Markit/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index rose to 45.3 in July from June's ten-year low of 43.1. The score was forecast to climb to 46.0.

On the flip side, the greenback appreciated to a 7-month high of 0.6786 versus the aussie and a 1-1/2-month high of 0.6523 against the kiwi, from yesterday's closing values of 0.6799 and 0.6550, respectively. The currency is likely to face resistance around 0.66 versus the aussie and 0.64 against the kiwi.

The greenback ticked up to 1.3231 against the loonie, after dropping to 1.3205 at 5:00 pm ET. The greenback may possibly challenge resistance around the 1.34 level.

Looking ahead, the U.S. and Canadian trade data for June, U.S. jobs data for July, durable goods orders for June and University of Michigan's final consumer sentiment index for July are scheduled for release in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Euro Climbs On German Stimulus Hopes (10 hr(s), 58 min(s), 18 sec(s) ago)
(RTTNews) - The euro strengthened against its major counterparts in the European session on Monday ...Full Story»

Euro Little Changed After Eurozone Inflation Data (12 hr(s), 22 min(s), 18 sec(s) ago)
(RTTNews) - Following the release of euro area final consumer price data for July at 5.00 am ET Mo ...Full Story»

Euro Climbs Ahead Of Eurozone Inflation Data (12 hr(s), 34 min(s), 18 sec(s) ago)
(RTTNews) - At 5.00 am ET Monday, Eurostat releases euro area final consumer price data for July. ...Full Story»

Pound Climbs Amid Risk Appetite On Stimulus Hopes (14 hr(s), 10 min(s), 18 sec(s) ago)
(RTTNews) - The pound strengthened against its major counterparts in the Asian session on Monday a ...Full Story»

Euro Falls On ECB Stimulus Hopes (07 hr(s), 10 min(s), 18 sec(s) ago)
(RTTNews) - The euro declined against its major counterparts in the European session on Friday on ...Full Story»

Dollar Little Changed Following U.S. Housing Data (08 hr(s), 55 min(s), 18 sec(s) ago)
(RTTNews) - Following the release of U.S. housing starts and building permits for July at 8:30 am ...Full Story»

Dollar Mixed Ahead Of U.S. Housing Data (09 hr(s), 01 min(s), 18 sec(s) ago)
(RTTNews) - The U.S. housing starts and building permits for July are due at 8:30 am ET Friday. Ah ...Full Story»

U.S. Dollar Spikes Higher As Recession Worries Fade (10 hr(s), 16 min(s), 18 sec(s) ago)
(RTTNews) - The U.S. dollar was higher against its most major counterparts in the European session ...Full Story»

Search

FOREX NEWS

Euro Climbs On German Stimulus Hopes

08/19/2019 - 06:30 AM (RTTNews)
(RTTNews) - The euro strengthened against its major counterparts in the European session on Monday ...Full Story>>

Euro Little Changed After Eurozone Inflation Data

08/19/2019 - 05:06 AM (RTTNews)
(RTTNews) - Following the release of euro area final consumer price data for July at 5.00 am ET Mo ...Full Story>>

Euro Climbs Ahead Of Eurozone Inflation Data

08/19/2019 - 04:56 AM (RTTNews)
(RTTNews) - At 5.00 am ET Monday, Eurostat releases euro area final consumer price data for July. ...Full Story>>

Pound Climbs Amid Risk Appetite On Stimulus Hopes

08/19/2019 - 03:18 AM (RTTNews)
(RTTNews) - The pound strengthened against its major counterparts in the Asian session on Monday a ...Full Story>>

Euro Falls On ECB Stimulus Hopes

08/16/2019 - 10:20 AM (RTTNews)
(RTTNews) - The euro declined against its major counterparts in the European session on Friday on ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.