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Dollar fell on anticipation of trade tensions and interest rates

2019-06-12 09:40 am | Resource: News | No Views : 108

Dollar fell on anticipation of trade tensions and interest rates


The dollar fell for a second straight day on Wednesday on growing expectations for US interest rate cuts next week as high-yielding currencies suffered from continuing trade tensions.

The US dollar was trading near two-month lows against a basket of currencies on Wednesday, as expectations that the Federal Reserve may cut interest rates in the coming months in response to the impact of global trade tensions that caused the currency pressure. Investors are now focusing on the upcoming Federal Policy Meeting on June 18-19 and the type of signals the central bank can give in the direction of monetary policy.

The dollar has been pressured by a sharp drop in yields on long-term US Treasury bonds, which fell to a two-year low on Friday after a weak US jobs report raised expectations the Federal Reserve would cut interest rates.

Concerns over the trade war and prospects for an end to the US-China conflict have been renewed after President Donald Trump said he was not accused of any agreement with Beijing, in which the latter did not abide by the terms reached in previous negotiations. The trade frictions between the world's two largest economies began to appear in the data as Chinese factory price inflation slowed in May as caution in statements by Federal Reserve officials grew.

The single currency was slightly hurt by US President Donald Trump's claim to Europe to devalue the euro, which has risen nearly 1.4 percent against the dollar since the beginning of June.

Basic Currencies Trading
  • The dollar dropped to 1.1243 against the euro.
  • The dollar fell to 1.0126 against the Swiss franc.
  • The dollar fell to a 3-month low of 109.55 against the yen.
  • Against the yen, the pound was down 0.32% against the yen at 142.73000 yen.
  • The greenback stabilized against the pound to trade at $ 1.3013.
  • The British currency lost 0.10% against the euro to trade at 1.16097 euros.
  • The pound dropped 0.24% against the franc to trade at 1.32372.


Other analysis

Best Opportunities, Vision and Technical Analysis for the USD/JPY pair 17 April 2019

We offer you the analysis of the US dollar against the Japanese Yen on Wednesday, April 17, 2019 with the most important expectations for the dollar against the Japanese yen on the market. Time frame Used - four hours The USD/JPY is moving in a bullish direction in the near term. USD/JPY is still facing resistance and selling pressure around 112.10 as the USD-JPY closed yesterday's session down below 112.00…

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