US Dollar Keeps Urgent Major Currency
In Asia Pacific money market trading until today afternoon, in general the US dollar or greenback is still moving very lightly and want to continue the strengthening side again.
As we know that in previous trading, the greenback condition put pressure on some other major currencies in the world, thus causing EURUSD to close lower at 1.1670 level, GBPUSD closed flat at the level of 1.3204, AUDUSD closed up at 0.7406 and USDJPY closed up at 112.52.
And for a while this morning, EURUSD is moving at the level of 1.1665, GBPUSD move at the level of 1.3182, AUDUSD at the level of 0.7414 and the yen at the level of 112.68.
In earlier trading, the US dollar index traded greatly, with a hot-trade warning trigger in which the US government added to a new $ 200 billion tariff on Chinese products, leaving investors with a doubt about the future of the global economy, they need a security asset for a moment after the release of US employment data. This condition is certainly still profitable US dollars as a safe or haven currency.
The first round of trade warfare has erupted, the next round is likely to continue, with Trump also preparing for a tariff reduction later to total $ 500 billion per year, or a trade deficit last year.
The safe-haven situation is inevitable given the temporary avoidance of assets with an uncertain return on interest rates, where the backdrop of the US dollar is still supported by the Fed’s work plan that is happy to raise interest rates in the future, supporters of the dollar index strengthened.
Opportunities for the strengthening of the dollar index are indeed open as investors see the US inflation data opportunity will indeed rise, as overnight consumer inflation data have also shown major points for drivers of the Fed’s interest rate rise. Its core annual inflation is at its best level again as it did in 2012 so that the nuances of normalization of monetary policy will continue to support the strengthening of the US dollar.
The absence of a trade war negotiation process will still support the dollar index, let alone Trump who is visiting Europe, launching attacks that lead to the feel of a strengthening US dollar.