US Dollar Flat as USA & China Act Tough

The US dollar was mostly flat today, erasing gains and losses it posted against its rivals earlier during the trading session, as markets were somewhat directionless today. While optimism about the upcoming US-China trade talks was affecting markets, it was slowly eroding after comments made by both Chinese and US officials.
US President Donald Trump put a damper on hopes for constructive trade talks, threatening China with more tariffs if it will not compromise:

You have another $325bn that I haven’t taxed yet – it’s ripe for taxing, for putting tariffs on.

China’s officials were not deterred by the tough act as China’s foreign ministry spokesman Geng Shuang answered to the threats:

The Chinese people are not afraid of pressure and never buy this kind of strategy.

Ministry of Commerce spokesman Gao Feng echoed such sentiment, saying:

China’s core concerns must be addressed properly.

EUR/USD traded at 1.1365 as of 17:40 GMT today, close to the opening level of 1.1368, after falling to the session minimum of 1.1347 earlier. GBP/USD was at about 1.2674, down from the open of 1.2689 and retreating from the session maximum of 1.2724.

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *