- US Dollar Index recovers above 98 handle on Monday.
- ECB's Kazimir says he is leaning toward a policy action in September.
- Trump wants to make a trade deal with Europe without imposing auto tariffs.
The EUR/USD pair advanced to its highest level in more than ten days at 1.1166 during the early trading hours of the Asian session but failed to preserve its bullish momentum. With the Greenback erasing the losses it suffered on Friday following news of China imposing retaliatory tariffs and the Trump administration hiking the tariff rate as a response, the pair turned south in the second half of the day and tested the 1.11 handle in the last hour. As of writing, the pair was down 0.35% on a daily basis at 1.1105.
USD rebounds on latest trade war headlines
According to Reuters, China's Vice Premier Liu He, who has been leading the trade negotiations with the US, on Monday said that China was willing to resolve the dispute through "calm" negotiations. Responding to these comments, US President Donald Trump said that he was confident that China was sincere about wanting a trade deal and allowed the 10-year US Treasury bond to rebound from the three-year lows it set earlier in the day.
Touching on the trade dispute with Europe at the G7 press conference, Trump said it was likely for his administration to reach a trade deal with the EU without imposing tariffs on European car imports.
Meanwhile, the only data from the US today revealed that new orders for manufactured goods in July increased by 2.1% to beat the market expectation of 1.1% and provided an additional boost to the Greenback. The US Dollar Index is now looking to close the day above the 98 handle, adding 0.8% on a daily basis.
On the other hand, the shared currency seems to be having a tough time finding demand as markets are trying to figure out how the European Central Bank (ECB) will react to the latest batch of disappointing data and the heightened geopolitical tensions. ECB Council member and Slovak central bank chief Peter Kazimi on Monday noted that he was leaning toward a 'policy action' in September.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.