TheÂ US dollar today rallied higher against its main trading partners asÂ news emerged that President Donald Trump‘s administration would not be pursuing theÂ harshest measures against China. Several positive releases from theÂ US docket such asÂ theÂ advance goods trade balance also served toÂ strengthen theÂ greenback inÂ theÂ early American session.
TheÂ US dollar today gained against its main trading peers asÂ tracked byÂ theÂ US Dollar Index, which hit aÂ high ofÂ 95.03 from aÂ low ofÂ 94.53.
TheÂ greenback’s rally began earlier today asÂ senior officials inÂ Trump’s administration stated that he would not invoke theÂ national emergency law onÂ China. Comments byÂ US Treasury Secretary Steven Mnuchin also indicated that Trump would make changes toÂ CFIUS inÂ order toÂ protect American technology. Trump also expects Congress toÂ pass new CFIUS legislation soon, orÂ he would use anÂ executive order toÂ apply theÂ same provisions. TheÂ US will also modify its export controls toÂ strengthen them if aÂ review byÂ the Commerce Department finds it necessary.
Releases from theÂ US docket such asÂ theÂ positive advance goods trade deficit released byÂ theÂ Census Bureau also boosted theÂ greenback. TheÂ advance goods trade deficit came inÂ atÂ $64.8 billion versus theÂ expected $69.0 billion, while theÂ durable goods orders contracted byÂ 0.6% instead ofÂ theÂ expected 1.0% decline.
TheÂ greenback’s short-term performance is likely toÂ be affected byÂ geopolitical events asÂ well asÂ theÂ release ofÂ theÂ US pending homes sales data scheduled forÂ later today.
TheÂ GBP/USD currency pair was trading atÂ 1.3164 asÂ atÂ 13:25 GMT having dropped from anÂ initial high ofÂ 1.3235. TheÂ EUR/USD currency pair was trading atÂ 1.1608 having declined from aÂ high ofÂ 1.1671.
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