Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar Still on the Back Foot on U.S. Tariff Announcement

Published 02/03/2018, 10:16
Updated 02/03/2018, 10:19
© Reuters.  Dollar remains under pressure despite Powell remarks

© Reuters. Dollar remains under pressure despite Powell remarks

Investing.com - The U.S. dollar remained lower against other major currencies on Friday, as worries over a potential global trade war following news of fresh U.S. tariffs continued to weigh on sentiment.

U.S. President Donald Trump announced plans on Thursday to impose tariffs of 25% on imported steel and 10% on aluminum, in a move to “protect U.S. industry”.

The news sparked concerns over potential trade wars, which drastically dampened risk sentiment.

The announcement overshadowed positive remarks by Fed Chair Powell, who told the Senate Banking Committee on Thursday that there was no evidence the U.S. economy is overheating.

Two days earlier, the Fed president had reiterated that the U.S. central bank would likely move forward with gradual increases in interest rates.

Separately, New York Federal Reserve President William Dudley said on Thursday that four interest-rate hikes this year would constitute a "gradual" tightening.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 90.15 by 05:15 a.m. ET (09:15 GMT), off Thursday's six-week peak of 90.89.

The euro was moderately higher, with EUR/USD up 0.11% at 1.2277, while GBP/USD held steady at 1.3762.

Earlier Friday, data showed that activity in the UK construction sector rose last month but still remained subdued.

In the euro zone, a report showed that German retail sales fell 0.7% in January, confounding expectations for an increase of 0.9%.

Elsewhere, the yen and the Swiss franc remained stronger, with USD/JPY down 0.50% at 105.69 and with USD/CHF sliding 0.44% to trade at 0.9378.

The Australian dollar was lower, with AUD/USD easing 0.08% to 0.7749, while NZD/USD held steady at 0.7247.

Meanwhile, USD/CAD rose 0.20% to trade at 1.2862.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.