Forex Marketz Daily Forex News – Fully Markets Update
The rise of the dollar lost some steam during Asian trade hours, and overnight, after the FOMC monetary policy meeting minutes from May were a bit more dovish than anticipated.
Also, President Donald Trump said that he was looking at new tariffs on imported cars, as NAFTA talks stalled.
This morning, the euro was lower. There are fresh trade concerns about an economic slowdown in the European Union. Also rising political risks in Italy. The EUR/USD was trading near a six month low. The EUR/JPY market is near a nine month low.
The U.S. dollar index, which measures the dollar against six Forex partners, fell to 98.897. This is down from a five month high at 94.195. This fall came after the FOMC minutes release.
This morning, the USD/JPY market was lower. It lost 0.3 percent to trade at 109.73.It was at 110.03 in early hours Singapore time. Overnight, it fell 0.73 percent.
In other Forex pairs, the safe haven Swiss franc, USD/CHF, was also higher. The franc against the USD was up 0.15 percent to 0.9943. It was at a three week high on Wednesday.
The EUR/USD market recovered a bit. It was at $1.1704. This comes after hitting a six month low. Still, the euro’s recovery was held in check by economic concerns and political worries in Italy, over a possible coalition deal.
Dollar and Forex Markets digest the FOMC Minutes Release
May’s FOMC minutes showed policymakers thought that another rate increase would be warranted. This was in line with expectations. Policy makers also alluded that they would tolerate inflation rising above its two percent goal.
The dollar’s stall was exacerbated when President Donald Trump appeared open a new front in his trade war, now with Mexico. He is thinking about new tariffs, now on automobiles. This comes after the U.S. agreed, with China, to put “on hold” its plan to slap new tariffs on $150 billion of goods out of China.
