Single Currency Slightly Lowered, US Data Ahead
The Euro/Dollar pair reduced 0.07% to close at 1.1640. Today’s focus is US durable goods orders. Core durable goods orders are projected to fall to 0.5%. Durable goods orders are expected to reduce -0.9%. Tomorrow, the European Union officials will have a 2-day meeting in Belgium and the US will publish Q1 Final Gross Domestic Product and jobless claims.
Lately, euro was very fragile to all trade war related news and tomorrow’s EU summit is expected to address the problem. The European Union has recently imposed retaliatory tariffs of around 25% on 3.3 billion dollars against the US steel and aluminum tariffs. Another key point of discussion is Brexit.
Raphael Bostic (Atlanta Fed President) expressed his doubts about Fed rate path for 2018, caused by the impact of Donald Trump’s trade policy. He said there was “some likelihood I will be moving away from four as a real possibility”, adding: “progresses the way it has been the last couple of days” regarding the trade threats of Trump’s administration to trading partners. And Bostic noted that “the more it progresses in this more contentious way, the more it leads me to feel the risks are on the downside for the broader economy.” Bostic also noted: “the disruption that comes from this type of trade war is not going to be good for the cost basis for businesses and it makes me a bit concerned how robust the economy will perform moving forward.”