- USD loses against Euro and JPY
- Asian stock markets recover slightly after overnight tumble
- Trump forging ahead with “America First” policy
The Euro moved higher against major currencies yesterday as political uncertainties in Germany lessened. At the same time, the USD and the Yen lost value amid subsiding worries about the possibility of a full-out international trade war.
Investor sentiment remained quite fragile.
The EUR/USD went up to 1.1669 yesterday afternoon, marking a 0.26% improvement. It ended the previous session 0.32% lower.
The Euro received a boost following German Chancellor Angela Merkel’s agreement with her coalition partners on immigration policy. This put to rest an issue that risked bringing down the whole German government.
The US dollar index, a measure of that currency’s strength compared to a mix of six large international currencies, dropped by 0.2% to 94.41.
Stock markets in Asia tumbled overnight before staging a comeback, but investors remain rather edgy in the run-up to the impending deadline in the trade disagreement between the United States and China.
American tariffs on Chinese imports of around $34 billion are scheduled to become effective on July 6, and China has already said it will retaliate with its own tariffs on US products of the same value.
In the meantime, President Trump is forging ahead with plans that could America’s biggest trading partners – Canada, Mexico, and the European Union – in the name of his ‘America First” campaign promise. Some investors are worried that this will hurt the international economy.
The USD improved slightly against the JPY, with the rate ending at 110.98.
The Euro also gained 0.36% against the Yen to reach 129.52.
The GBP/USD rate gained 0.27% to reach 1.3156, while the AUD/USD and NZD/USD gained 0.64% and 0.15% respectively.