U.S Dollar steady, as gains were capped by lingering fears of trade conflict.June 28, 2018
The U.S Dollar traded at constant levels against a basket of major currencies on Wednesday, its earlier recovery from two-week lows was limited amid lingering trade conflict with partners.
Although a slight easing in concerns over an ever-increasing trade dispute between the United States and its trade partners helped lift the greenback off a two-week low of 94.171, concerns and investor caution capped the Dollar as wariness lingered.
The U.S. Dollar index, which measures the Greenback’s strength against a basket of six major currencies traded at 94.76 at 09:30 GMT.
The benchmark touched its lowest point since the 14th of June on Tuesday due to wariness regarding the United States trade relations, especially its row with China.
Although the trade conflict will probably overextend it’s welcome and likely a long-running theme haunting the financial markets, a slight easing in concerns partially recuperate risk appetite.
The Euro lost 0.05 percent to the Greenback to trade at 1.16423 EURUSD to 09:30 GMT after losing more than 0.50 percent on Tuesday, to end the session at 1.16475 EURUSD. Weighed down by concerns over trade rows with the U.S
Over in the United Kingdom, the Sterling lost 0.17 percent against the Greenback, to trade at 1.32004 GBPUSD at 09:30 GMT. The Cable extended on the 0.45 percent loss incurred on Tuesday after an inbound Bank of England policymaker voiced caution over the Kingdom ’s promptness for higher interest rates and the cloud of uncertainty regarding the impact of Brexit on the economy.
Regarding safe-haven assets, the U.S. Dollar hovered near its two-week low against the Yen on Wednesday as global trade tensions continue to make the Yen more attractive to investors, the yen is often sought in times of market turmoil and political tensions.
The Greenback was down 0.23 percent at 109.775 USDJPY at 09:30 GMT
The commodity-linked Australian, New Zealand and Canadian Dollars were lower, as oil price and copper price continued to decline.
The Canadian Dollar was little changed against its U.S. counterpart on Tuesday; The USDCAD fell 0.18 percent to trade at 1.3211 at 09:30 GMT.
Over in Australia and New Zealand, The Aussie Dollar fell by 0.27 percent against the Greenback to trade at 0.73716 AUDUSD at 09:30 GMT, Meanwhile the Kiwi Dollar lost 0.50 to trade at 0.68165 NZDUSD.