Market players are still evaluating the most recent events surrounding the global trade dispute that was sparked by US President Donald Trump's tariffs in the absence of high-tier macroeconomic data releases. The sole significant data release on Tuesday's US economic schedule is the NFIB Business Optimism Index for March.
Today's US dollar price
As Trump and other US officials reaffirmed their resolve to maintain tariffs, markets became risk apprehensive at the start of the week. Trump is digging down on what he knows works, according to Kevin Hassett, Director of the US National Economic Council (NEC), who made this statement in an interview with Fox News on Monday. He also stated that Trump will listen to trading partners if they provide "truly outstanding deals." Trump is proposing a 90-day moratorium in tariffs for all countries except China, Hassett told CNBC later in the day, according to multiple news sites, including Reuters. However, this headline's beneficial effect on risk sentiment was short-lived because the White House issued a statement denouncing the CNBC reporting as "false news."
Following China's 34% retaliatory tariffs on US imports on Friday, Trump used social media to threaten an extra 50% tariff on China. China's Foreign Ministry responded on Tuesday, saying that "China would fight till the end if the US insists on a trade war."
While the US Dollar (USD) Index remains in negative territory at approximately 103.00, US stock index futures trade substantially higher in the European morning on Tuesday, suggesting a stronger risk mood despite this back and forth between China and the US.
In the early European session, EUR/USD holds onto daily gains at about 1.0950 after ending the day essentially unchanged on Monday. Maros Sefcovic, the European Union's trade commissioner, announced on Monday that the US has been offered zero-for-zero tariffs on automobiles and all industrial imports.
Monday saw a more than 1% decline in GBP/USD, which fell to its lowest level in a month at 1.2720. Tuesday sees a higher correction, with the pair trading just around 1.2750.
Last Friday, the NZD/USD exchange rate dropped almost 3%, and on Monday, it continued to decline. The pair reversed course and was last seen trading at around 0.5600, up 1.2% on the day, after plunging to its lowest level in around five years, close to 0.5500. Early Wednesday morning in the Asian session, the Reserve Bank of New Zealand will make its monetary policy announcements.
On Monday, the USD/JPY increased by almost 0.5%, but it was unable to maintain its upward trajectory. The pair was trading at 147.10 at the time of writing, down 0.5% for the day. Shigeru Ishiba, the prime minister of Japan, stated on Monday that they will keep pressing the US to reassess its tariff policies and that he is thinking of going to the US at the right time to speak with Trump directly.
Gold continued to decline on Monday, losing almost 1.5% for the day. Tuesday's European morning saw a recovery in XAU/USD, which is now trading just above $3,000.
Today's US dollar price
As Trump and other US officials reaffirmed their resolve to maintain tariffs, markets became risk apprehensive at the start of the week. Trump is digging down on what he knows works, according to Kevin Hassett, Director of the US National Economic Council (NEC), who made this statement in an interview with Fox News on Monday. He also stated that Trump will listen to trading partners if they provide "truly outstanding deals." Trump is proposing a 90-day moratorium in tariffs for all countries except China, Hassett told CNBC later in the day, according to multiple news sites, including Reuters. However, this headline's beneficial effect on risk sentiment was short-lived because the White House issued a statement denouncing the CNBC reporting as "false news."
Following China's 34% retaliatory tariffs on US imports on Friday, Trump used social media to threaten an extra 50% tariff on China. China's Foreign Ministry responded on Tuesday, saying that "China would fight till the end if the US insists on a trade war."
While the US Dollar (USD) Index remains in negative territory at approximately 103.00, US stock index futures trade substantially higher in the European morning on Tuesday, suggesting a stronger risk mood despite this back and forth between China and the US.
In the early European session, EUR/USD holds onto daily gains at about 1.0950 after ending the day essentially unchanged on Monday. Maros Sefcovic, the European Union's trade commissioner, announced on Monday that the US has been offered zero-for-zero tariffs on automobiles and all industrial imports.
Monday saw a more than 1% decline in GBP/USD, which fell to its lowest level in a month at 1.2720. Tuesday sees a higher correction, with the pair trading just around 1.2750.
Last Friday, the NZD/USD exchange rate dropped almost 3%, and on Monday, it continued to decline. The pair reversed course and was last seen trading at around 0.5600, up 1.2% on the day, after plunging to its lowest level in around five years, close to 0.5500. Early Wednesday morning in the Asian session, the Reserve Bank of New Zealand will make its monetary policy announcements.
On Monday, the USD/JPY increased by almost 0.5%, but it was unable to maintain its upward trajectory. The pair was trading at 147.10 at the time of writing, down 0.5% for the day. Shigeru Ishiba, the prime minister of Japan, stated on Monday that they will keep pressing the US to reassess its tariff policies and that he is thinking of going to the US at the right time to speak with Trump directly.
Gold continued to decline on Monday, losing almost 1.5% for the day. Tuesday's European morning saw a recovery in XAU/USD, which is now trading just above $3,000.
