Trump’s diplomacy keeps US dollar up
US dollar lost a part of its latest gains, but continues to be favored by traders. The currency has been reinforced by another episode of US-China hostilities.
By 06:45 GMT the US Dollar Index lost 0.1% and stood at 100.365. A week ago it reached the highest position in three weeks.
EUR/USD was at 1.0800, losing 0.03%. The traders are waiting for a new data on German GDP. USD//JPY lost 0.1% and stood at 107.17.
President Trump reignited international tensions on May 15. He expressed his disappointment with China’s inadequate efforts of containing the virus. In his opinion, it undermines the whole trade deal. The President even considers cutting the diplomatic relations between the countries altogether. Danske Bank analyst already stated, that new tariffs are possible.
China’s RMB was on the retreat and went down to 7.1026 in mainland trading. USD/CNY gained 0.1% and traded at around 7.1003. The traders are weighing conflicting data. China’s industrial output started to recover last month, and yet retail sales suffered 7.5% losses.