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

Forex- U.S. Dollar Falls on Trade Woes, as Pound Rallies After Data

Published 19/09/2018, 10:48
Updated 19/09/2018, 11:01
© Reuters.  The U.S. fell on Wednesday.

© Reuters. The U.S. fell on Wednesday.

Investing.com - The U.S. dollar was lower against other currencies on Wednesday amid trade war tensions while the pound rose after better than expected inflation data.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.22% to 94.01 as of 5:48 AM ET (9:48 GMT).

On Tuesday China said it would impose new tariffs on U.S. goods worth $60 billion, effective September 24. The new tariffs are in response to U.S. tariffs on Monday of 10% on $200 billion in Chinese goods, which will go up to 25% at the end of the year. China also filed a complaint against the U.S. with the World Trade Organization, as expected.

Donald Trump tweeted that “there will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!” He previously stated that the U.S. would impose tariffs on another $267 billion of additional imports if China retaliates.

The Chinese yuan recovered slightly with USD/CNH falling 0.10% to 6.8546.

Elsewhere, the dollar fell against the safe-haven yen, with USD/JPY down 0.04% to 112.32. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

Meanwhile sterling increased after the consumer price index came in higher than expected. GBP/USD increased 0.24% to 1.3179.EUR/USD rose 0.30% to 1.1699, driven higher by the fall in the greenback.

The Australian dollar was higher, with AUD/USD up 0.48% to 0.7252 while NZD/USD jumped 0.43% to 0.6611.

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.