Greenback Shrugged Off Trade War Threat
Dollar is now trading as the strongest, despite the risk, caused by Donald Trump’s tariffs decision. The President signed the order yesterday and it will come into effect in two weeks. Canada and Mexico are temporarily excluded from the tariffs. Trump also claimed taxes will be lowered for countries that treat US fairly.
The overall reaction to Trump’s action was rather muted. DOW rose 0.38% but remained under the key handle of 25000. Nikkei increased 0.8%. The US market is waiting to today’s NFP data. Additionally, the US President will have a meeting with Kim Jong-un, where both leaders will discuss their nuclear situation. Donald Trump said he was hoping North Korea will agree on denuclearization.
At its yesterday’s meeting, European Central Bank was a little more hawkish than usually. At first, euro surged, but then reversed as Mario Draghi expressed his worries about weak inflation. Growth projections, on the other hand, were improved. Lowering of the asset purchase program will still be going on a EUR 30 billion pace. Donald Tusk (European Council President) stressed that the main point in Brexit negotiation is Northern Irish border case and added that UK should remember that no matter what, the Irish border issue will be the prime thing to discuss. If Britain has a different vision, noted Tusk, a progress in Brexit process would be impossible.