Monday 9 April 2018

The dollar is losing after the continuing tension between the US and China

The dollar fell on Friday as a result of continued tensions between China and the United States and data on the weakest job creation in the US economy in March for six months.
Particularly pronounced was the depreciation of the dollar against what are considered "rescue currencies" - the yen and the Swiss franc.
On Friday, China warned that it could respond "at any cost" to President Donald Trump's threat of imposing import duties on $100 billion in Chinese goods.
The loss of the dollar accelerated after the Chinese Commerce Minister said his country would not hesitate to respond to further action by the US. He rejected possible talks between the two trading partners under the current conditions.
The trade drama between the United States and China overshadowed employment and unemployment figures in the United States, which reported less than expected new jobs in March.
Powell said at the end of last week that the Fed would most likely have to continue raising interest rates to keep inflation under control.
The dollar fell 0.5% against the yen to 106.89, as well as 0.5% against the franc to 0.9587 francs at the end of last week. The dollar index fell 0.4 percent to 90.12, with the euro rising 0.4 percent to 1.2282.
Employment data showed only 103,000 newly created jobs, well below the projected 193,000 new jobs and under 326,000 jobs in March.
The good news was the 0.3% growth in average hourly earnings, which raised annual inflation expectations.


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