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The EUR/USD pair recovers some ground on Friday, climbing above 1.1600 as the Greenback plunges, driven by an escalation of the trade war between the US and China. However, gains seem capped by the political turmoil and weaker-than-expected data in the Eurozone (EZ). The pair trades at 1.1606, up 0.37% at the time of writing.Dollar slumps on renewed tariff threats; France’s leadership reset relieved Euro’s bullsOn Friday, the Euro (EUR) recovered after four days of consecutive losses, despite the ongoing political turmoil in France. Recently, the French President Emmanuel Macron reappointed Se´bastien Lecornu as Prime Minister, after he quit the…
The Dow Jones Industrial Average (DJIA) soured sharply on Friday, plummeting to its lowest bids in nearly three weeks and declining over 1,000 points top-to-bottom after US President Donald Trump pulled out of upcoming trade talks with Chinese President Xi Jinping and vowed to sharply increase import tariffs on all Chinese goods. According to Trump, China is holding the rest of the world hostage with its protectionist rare earth materials policies.Market-wide expectations of a potential tariff-easing trade deal between the US and China were demolished by Trump’s fresh tariff proclamation, sending investors scurrying into safe havens to cap off an…
Gold price rises during the North American session on Friday amid an escalation of the trade war between the US and China. This, the US government shutdown and expectation for further easing by the Federal Reserve (Fed) keep the yellow metal bid. XAU/USD trades at $3,997, up 0.60%, at the time of writing.Bullion’s boosted by escalating tariff threats and prolonged Washington deadlock reigniting risk aversionRisk aversion is the name of the game after US President Donald Trump warned of possible fresh duties on China, as the latter threatens to impose export controls on rare earths. Trump added that there is…
West Texas Intermediate (WTI) US Crude Oil prices collapsed below $60.00 per barrel on Friday, tumbling over 4% in Oil’s worst single-day performance since June’s sharp pullback. Hopes for a cooling of tariffs between the US and China were swept off the table to end an otherwise unremarkable week, souring already-weak investor sentiment amidst an extending US government shutdown.More tariffs incoming?US President Donald Trump publicly pulled out of an upcoming trade meeting between himself and Chinese President Xi Jinping, and vowed via social media proclamation to impose additional steep import tariffs on all goods being imported into the US from…
The Australian Dollar (AUD) slumps against the US Dollar (USD) on Friday, with AUD/USD plunging to over one-month lows after US President Donald Trump threatened a “massive increase” in tariffs on Chinese imports, reigniting fears of a renewed trade war between the world’s two largest economies.Given Australia’s close trade ties with China, the comments weighed heavily on the Aussie as traders trimmed exposure to risk-sensitive currencies. At the time of writing, AUD/USD trades around 0.6484, down nearly 1.0% on the day and on track to post a weekly loss.At the same time, the Greenback also fell against its major counterparts,…
Federal Reserve (Fed) Bank of St. Louis President Alberto Musalem spoke about the United States (US) economy and monetary policy at a fireside chat before the Springfield Area Chamber of Commerce and Public policy speakers, stating that inflation is running high. He added that the labor market is showing signs of potential weakness and that a balanced approach to monetary policy only works if inflation expectations are anchored.Key QuotesFed’s goals are in tension.A balanced approach to monetary policy only works if inflation expectations are anchored.Less able to respond to short-term labor market fluctuations if inflation expectations become unanchored.Right now, inflation…
The Euro (EUR) extends its pullback against the Japanese Yen (JPY) on Friday, with EUR/JPY losing 0.35% to 176.40 at the time of writing, after reaching an all-time high of 177.94 in the previous session. The European currency remains under pressure amid political instability in France, where the resignation of Prime Minister Sébastien Lecornu has reignited concerns about the government’s ability to contain its fiscal deficit.French President Emmanuel Macron, under pressure to appoint a new head of government before the end of the day, struggles to secure a consensus after a series of unproductive meetings with opposition parties. The lack…
The US Dollar Index (DXY) drops by 0.48% to trade around 98.90 on Friday at the time of writing, extending its recent weakness as global investors react to a new escalation in trade tensions between the United States (US) and China.US President Donald Trump said on his social media platform Truth Social that his administration is considering a “massive increase of tariffs” on Chinese imports, describing Beijing’s latest export restrictions on rare earths as “hostile.” Trump added that he sees “no reason” to meet Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea, suggesting…
The Euro (EUR) is showing signs of stabilization against the US Dollar (USD) on Friday, pausing a four-day losing streak as the Greenback softens. At the time of writing, EUR/USD trades near 1.1621, up around 0.50% on the day, after dipping to a two-month low on Thursday. Even with the mild rebound, the pair remains on course for its sharpest weekly drop since July, weighed by political turbulence in France.The Euro came under sustained selling pressure earlier in the week after French Prime Minister Sébastien Lecornu resigned just hours after unveiling his cabinet, making his tenure one of the shortest…
GBP/USD retreats toward 1.3280 during Friday’s US session, marking a fresh two-month low. The US Dollar (USD) remains firm, supported by increased safe-haven demand amid political uncertainty in Japan and France. The US Dollar Index (DXY) holds near Thursday’s two-month high of 99.56, limiting any rebound of the Cable.Despite rising expectations for further interest rate cuts by the Federal Reserve (Fed) before year-end, the Greenback remains in demand. According to the CME FedWatch tool, markets assign over an 80% chance of a 50-basis-point rate cut by December. Federal Open Market Committee (FOMC) members John Williams and Mary Daly acknowledged that the…