The US dollar rallied against its major peers today after news about the US-China trade war reinforced the view that the world’s two biggest economies will not reach a trade deal anytime soon.
US President Donald Trump said today that the USA are not ready to make a deal with China:
I think they probably wish they made the deal that they had on the table before they tried to renegotiate it. They would like to make a deal. Weâre not ready to make a deal.
He added that tariffs on Chinese goods “could go up very, very substantially, very easily”.
That is in a complete opposition to the previous statements from US officials that a deal is close. And with China signaling that it is not interested in resuming negotiations before the USA end aggressive rhetoric, traders prepare for a prolonged trade war. And such outlook increased demand for safer currencies. Ironically, the US dollar was among those profited from that.
EUR/USD declined from 1.1209 to 1.1190 as of 19:28 GMT today. GBP/USD dropped from 1.2726 to 1.2681. USD/JPY went up from 109.32 to 109.53.
If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.