The dollar was stronger during this morning’s Asian trade session as it steadied ear a six month high against the yen. The U.S. currency also held firm against other major Forex partners as it is likely the United States Federal Reserve Board will raise rates two more times this year.
The Forex market remains on edge regarding an all-out trade war between the U.S. and China. Still trades watched a report from the
U.S. Labor Department. There is renewed expectation of higher inflation. This increased bets that in more rate hikes as the world’s top economy is heating up.
The USD/JPY benchmark was trading higher by 0.1 percent. The dollar was trading at 112.07 yen. It has now broken above the key 112 yen level for the first time since January 10. This occurred during North American trade hours. The dollar was up nearly 1.3 percent, overnight, to trade at 112.175 yen.
The EUR/USD market was weaker. The euro is lacking momentum. This market was last trading at $1.1675. It is moving lower from it three and a half week peak, touched Monday, at $1.17905.
Forex and Dollar Traders continue to fret over Trade Hurting Commodity Currencies
The USD/CAD gained as the Canadian currency weakened. As mentioned above, persistent trade war news and a rate hike supported the U.S. currency in this market as well.
During Asian trade hours the USD/CAD was at C$1.3215. It fell nearly 0.75 percent during yesterday’s volatile trading day.
There is a great deal of trader angst over an escalating trade war between the world’s two largest economies. This news was slightly ignored in the stock markets after selling off after the Trump Administration announced new tariffs of ten percent tariffs on $200 billion of Chinese imports into their country.