Euro Gets Boost From Dollar's Weakness
The euro strengthens, as growth of the US dollar pauses after solid Chinese data had calmed investor nerves about recent US-China trade conflict. The EUR/USD pair gained 0.2% to $1.1618, up from Monday's low of $1.1530, while the dollar index lost 0.2% to 95.036.
Today’s Chinese trade data were optimistic. China's exports rose 12.2% yoy in July, up from 11.2% gain in June and beating forecasts for a 10% growth. Imports grew 27.3% in July, exceeding forecast of 16.2% growth, and compared with a 14.1% rise in June. China's trade surplus with the United States fell slightly to $28.09 billion last month from a record $28.97 billion in June. Economists had forecast the surplus would be $39.33 billion in July, compared to a surplus of $41.47 billion in June.
The dollar fell after the US said late on Tuesday that plans to move ahead with further tariffs for Chinese imports, starting August 23. A 25% tariff will be applied for the annual import of goods from China worth about $16 billion, covering about 280 items of goods. The move is the latest by Washington to pressure China into negotiating trade concessions.