By Chibuike OGUH, Lucy Raitano
New York/London (Reuters) -American dollars on Thursday raised against most of the major currencies including Swiss Frank and Euro, as investors consolidated the positions after selling greenback for most of this week, but the outlook was weak amid worry about slowing down the growth of the business policies of the Trump administration.
US President Donald Trump threatened to impose 200% tariffs on liquor, conyack and other alcohol imports from Europe, open a new front in a global trade war that cried financial markets and raised the possibility of recession.
Trump on Wednesday threatened to retaliate against the European Union’s announcement that it would place counter-tariffs on US imports of $ 28 billion from next month.
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The Labor Department data on Thursday revealed that the prices of American producer were unexpectedly insufficient on a monthly basis in February, but the chances of tariffs are unlikely to keep the chances of tariffs low in the coming months.
“We have a huge dollar weak trick in the last days and weeks in the recent days and weeks, and it seems that we are entering a consolidation period,”
“We see the possibility that the dollar is cured because we are still hit with tariffs news and we are having a mutual tariff deadline in early April.”
The dollar ran from 0.11% to 0.883 against Swiss Frank.
The euro was below 0.28% to $ 1.0856 against the dollar, but near the top of the five months of $ 1.09470 hit a week.
Germany’s fiscal reset scheme has provided additional assistance to the Euro. The outgoing Lower House of Parliament of Germany will organize a special session to debate 500 billion euro funds for infrastructure on Thursday and promote rules for borrowing rules in Europe’s largest economy.
“We are due to a dollar consolidation and a reversal, but it will depend on how much the trade policy and tariffs take on the drivers of the dollar weakness, who are European recovery and fiscal expenses and weak American data,” Serbriyakov said.
Strong yen
The Japanese yen strengthened 0.39% to 147.84 per dollar against the greenback, with high Japanese interest rate expectations.
While Bank of Japan is expected to leave its major interest rate unchanged at next week’s policy meeting, more than two-thirds of economists voted by Reuters expected an increase of 25 basis points in the third quarter, which is most likely in July.
The money markets were also processing the data from Wednesday, showing that consumer prices increased slightly less than expected in February, but the relief given this could be temporary as the data did not fully capture Trump’s tariff’s cascade.
The dollar index, which measures greenback against a basket of currencies, including yen and euro, increased 0.2% to 103.80. It is on track for the benefit of two straight days.
Canadian dollars weakened 0.39% versus Greenback at C $ 1.4424 per dollar, a day later Canada trimmed its major policy rate with 25 basis points, left traders on the shore with business disputes.
State Street Senior Global Market Strategist Marwin Loh said, “Chopness and volatility (in dollars) is probably a big story, and it is definitely inspired by uncertainty about tariffs, uncertainty about a potential business war and what it is uncertain about emerging geo -world environment,” the senior global market of State Street in Boston, “is the senior global market of State Street in Boston. Said.
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