Dollar Down vs Havens, Up vs Euro on Trump Trade Threats

Dollar Down vs Havens, Up vs Euro on Trump Trade Threats

06 May 2019 02:29 PM
 

The dollar was mixed in early trading in Europe on Monday, trading lower against haven currencies and higher against proxies for risk appetite in the wake of President Donald Trump’s threats to impose fresh tariffs on Chinese imports.

The euro had fallen just under half a cent late on Sunday after Trump threatened to raise existing tariffs on $200 billion of Chinese imports from 10% to 25%, and to levy new tariffs of 25% on a further $325 billion so far unaffected by the U.S.-China trade dispute.

However, the euro had recouped most of its initial losses to trade at $1.1193. Trade is set to be relatively quiet Monday due to the public holiday in the U.K. The main data event of the day will be service PMIs from across the region.

Elsewhere, the British pound weakened slightly as hopes of a cross-party deal to break the impasse on Brexit faded. The pound was down 0.4% at $1.3124.

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