Dollar, yen and chf rallies after China announces additional tariffs on U.S. goods

Market Review - 13/05/2019  13:32GMT  

Dollar, yen and chf rallies after China announces additional tariffs on U.S. goods

Although the greenback traded narrowly in Asia and European morning after last Friday's U.S.-China trade talks did not collapse. The greenback n safe-haven yen and chf rallied shortly after New York open due to escalation of U.S.-China trade tension after China announced additional tariffs on U.S. goods effective June 1st, dollar later pared intra-day losses and rebound against its majors peers except vs uen and chf.  
  
China plans to impose tariffs on $60 billion worth of U.S. goods, the Finance Ministry said on Monday, after the United States escalated a bitter trade war with a tariff hike on $200 billion of Chinese products.   
China will impose tariffs on a total of 5,140 U.S. products from June 1, the Ministry said in a statement on Monday.  
  
Versus the Japanese yen, dollar opened lower to 109.75 in New Zealand and then dipped to 109.60 at Asian open on weakness in the Nikkei 225 before moving sideways in Europe. Price then met renewed selling and swiftly fell to 109.22 at New York open as U.S.-China trade tension heightened and later tumbled to a 13-week low of 109.02 before staging a short-covering rebound to 109.38.  
  
The single currency went through a roller-coaster ride. Although price moved broadly sideways in Asia and retreated to 1.1223 in European morning, renewed buying emerged and intra-day gain accelerated at New York open as U.S.-China trade tension escalated and rose to an 11-day high at 1.1265 (Reuters) in New York morning before retreating to 1.1223 on cross-selling in euro.  
Reuters reported European Trade Commissioner Cecilia Malmstroem expects U.S. President Donald Trump to delay a May 18 deadline for U.S. tariffs on cars imported from the European union, according to an interview published in the Sueddeutsche newspaper on Monday.  
  
The British pound went through a volatile session. Although cable rose from 1.2992 in New Zealand to 1.3016 at European open and then gained in tandem with euro to session highs at 1.3041 in New York, price erased its gains and dropped to a 12-day low of 1.2942 on cross-selling in sterling.  
  
Data to be released on Tuesday :  
  
Japan current account, Eco Watchers current, Eco Watchers outlook, Australia NAB business conditions, NAB business confidence, Germany CPI, HICP, wholesale price index, ZEW economic sentiment, ZEW current conditions, Swiss producer/import price, UK claimant count, ILO unemployment rate, employment change, average weekly earnings, EU industrial production, ZEW economic sentiment, and U.S. import prices, export prices redbook.