U.S. Dollar Weakens On Trade War Concerns
March 01 2018 - 9:01PM
RTTF2
The U.S. dollar slipped against its major counterparts in the
Asian session on Friday, after the European Commission promised
"countermeasures' against U.S. President Trump's announcement of
new tariffs on imported steel and aluminum.
European Commission President Jean-Claude Juncker condemned that
Trump's decision is "blatant intervention" to protect US
industry.
He said he would "bring forward in the next few days a proposal
for WTO-compatible countermeasures against the U.S."
Juncker said Trump's announcement to levy a 25 percent tariff on
steel imports and a 10 percent tariff on aluminum would have a
negative impact on global markets.
Meanwhile, during his second day of congressional testimony, Fed
Chair Jerome Powell said that there hasn't yet been strong evidence
of a decisive increase in wages.
Asian stock markets dropped as Trump's decision sparked fears of
aggressive trade protectionism.
The greenback dropped to a 2-day low of 1.3793 against the pound
and held steady thereafter. On the downside, 1.42 is seen as the
next support level for the greenback.
The greenback reversed from an early high of 106.29 against the
yen, dropping to a 2-week low of 105.71. The next possible support
for the greenback is seen around the 104.00 mark.
Data from the Ministry of Internal Affairs and Communications
showed that the unemployment rate in Japan came in at a seasonally
adjusted 2.4 percent in January.
That was well beneath forecasts for 2.8 percent, which would
have been unchanged from the December reading.
The greenback that closed Thursday's trading at 0.9416 against
the franc weakened to a 2-day low of 0.9387. The greenback is
poised to challenge support around the 0.91 level.
The greenback hit a 3-day low of 1.2288 against the euro and
moved sideways thereafter. The pair closed Thursday's trading at
1.2267.
The greenback fell to a 2-day low of 0.7774 against the aussie
and a 3-day low of 0.7277 against the kiwi and moved sideways
thereafter. If the greenback drops further, 0.79 and 0.75 are
possibly seen as its next support levels against the aussie and the
kiwi, respectively.
On the flip side, the greenback edged up to 1.2841 against the
loonie and traded sideways shortly thereafter.
Looking ahead, U.K. construction PMI for February and Eurozone
PPI for January are set for release in the European session.
In the New York session, Canada GDP data for December and
University of Michigan's final consumer sentiment index for
February are scheduled for release.
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Mar 2024 to Apr 2024
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Apr 2023 to Apr 2024