USD Under Pressure After Trump-Juncker Talks

Forex News

The US dollar remains under pressure after the United States and the European Union agreed to start talks on tariff cuts, which alleviated fears of a deterioration in global trade tensions. The dollar retreated across the board, losing almost 1% versus the Canadian dollar and touching its lowest level in six weeks. The dollar index, which tracks the greenback against a basket of major currencies, fell by 0.1% to 93.96 (a two-week low).

President Donald Trump said on Wednesday that he had made a preliminary deal with European Commission President Jean-Claude Juncker to ease trade tensions and avoid a full-scale trade war with the European Union. The two leaders reached an accord which included expanding imports of US liquefied natural gas and soybeans while reducing industrial tariffs on each side.

The European Central Bank is set to hold its latest monetary policy meeting today. The central bank is expected to hold steady on its policy and rate decisions at the meeting, given heightened uncertainties for the global economy. The focus will be on the ECB‘s assessments of these risks at its meeting, with investors concerned of the acute risk of a trade war escalation.