U.S. President Donald Trump is not backing down from the strict line he has taken on trade, the White House’s top economic adviser said on Wednesday, setting the stage for a showdown with top allies at this week’s G7 summit in Canada.
The U.S. Dollar index, which measures the strength of the U.S. Dollar versus a group of six other major currencies, dropped by 0.21 percent to end the session at 93.59.
The meeting on Friday and Saturday in Charlevoix, Quebec, will be the first chance G7 leaders have had to confront Trump in person since U.S. tariffs on steel and aluminum imports from Canada, Mexico, and the European Union were imposed last week.
Over in Europe, the Euro stayed near its two-weeks high against many of its rivals on Wednesday, on rising bets the European Central Bank may announce it will wind down its stimulus program by year-end as early as next week. The EURUSD rose by 0.5 percent to end Wednesday’s trading session at 1.1773.
The central bank’s chief economist Peter Praet, a close ally of President Mario Draghi, said the European Central Bank would debate next week whether to end bond purchases later this year.
Expectations that the European Central Bank would reduce its bond-buying program by the end of this year is feasible, said Jens Weidmann, the head of Germany’s central bank. While his Dutch counterpart, Klaas Knot, stated there was no reason to continue a quantitative easing program.
Meanwhile, in the United Kingdom, The Sterling strengthened against the U.S. Dollar, rising by 0.14 percent to end Wednesday’s session at 1.3412.
Regarding the safe-haven assets, the Japanese Yen weakened against the Greenback on Wednesday, the USDJPY rose by 0.36 percent to close at 110.17, while the Swiss Franc lost against the Greenback, the USDCHF rose by 0.2 percent to trade 0.9863 at the close.
Meanwhile, Gold stayed untouched against the Greenback on Wednesday; the XAUUSD ended the session at 1296.35 U.S. Dollars per ounce.
The Canadian Dollar strengthened to a near one-week high against its U.S. counterpart on Wednesday as domestic data showed a narrower-than-expected trade deficit, but some gains were pared ahead of this week’s G7 summit. The USDCAD dropped by 0.2 percent to trade 1.2941 at the close.
Regarding the U.S. Crude Oil prices, Oil July dropped by 0.74 percent on Wednesday, to trade at 64.99 U.S. Dollars per barrel at the close.
Over in Australia and New Zealand, The Australian Dollar jumped by 0.66 percent on Wednesday to trade at 0.7666 at the close, and the New Zealand Dollar rose by 0.17 percent to end the session at 0.7032.