The dollar struggled to recover from a five-month low against major currencies on Wednesday, as traders digested U.S.-EU retaliatory tariffs and a potential Russia-Ukraine truce, while awaiting U.S. inflation data amid concerns about the economy.
President Donald Trump's unpredictable trade policy announcements have rattled markets and prompted retaliatory tariffs from trading partners, escalating a global trade war.
The European Union will impose retaliatory tariffs on 26 billion euros ($28.39 billion) worth of U.S. goods starting in April, the European Commission said on Wednesday, in response to U.S. tariffs on steel and aluminum that came into effect the previous day.
"There are so many, so many moving parts," said Kenneth Broux, head of FX and rates research at Societe Generale. "We don't see any safe havens in European assets this morning because of the trade war retaliation," Broux added.
The euro weakened after hitting a five-month peak of $1.0947 on Tuesday as Ukraine said it was ready to support Washington's proposal for a 30-day ceasefire with Russia. The ball is now in Moscow's court.
The Kremlin said on Wednesday it was waiting for details from the U.S., while senior Moscow sources said a deal must take into account Russia's progress and address its concerns.
The euro was trading 0.15% lower at $1.0902 in midday European trade.
The single European currency has been buoyed by Germany's pledge to spend big, although the situation has become more complicated after the Greens vowed to block the plan and unveiled a rival proposal.
SOURCES OF VOLATILITY
The Canadian dollar steadied after a volatile session on Tuesday, when Trump vowed to double steel and aluminum tariffs to 50%, only to reverse course hours later.
The Bank of Canada decides policy on Wednesday, with traders expecting another quarter-point rate cut.
The greenback weakened to C$1.4415.
Canada will announce C$29.8 billion in retaliatory tariffs against the United States on Wednesday, a Canadian official said, declining to be identified.
"Trade uncertainty continues to persist and so does market volatility," said Kyle Rodda, senior financial markets analyst at Capital.com.
"The U.S. growth outlook continues to deteriorate," Rodda added, pointing to increased attention on the consumer price index (CPI) release later in the day, which he warned "could be a source of significant volatility." (Newsmaker23)
Source: Reuters
The U.S. dollar rose on Friday, a day after falling on a surge in U.S. jobless claims and modest inflation, as investors expected the Federal Reserve to cut interest rates next week after a roughly ni...
The US dollar weakened on Friday after a surge in jobless claims and a moderate rise in inflation made markets increasingly confident that the Fed would cut interest rates next week—and possibly furth...
The US dollar held steady early in the Asian session after the PPI data fell 0.1% in August, reinforcing expectations that the Fed would cut interest rates next week. The Dollar Index edged up to 97.8...
The US dollar held steady on Wednesday (September 10th) ahead of US inflation data this week that could help shape the Federal Reserve's policy outlook, while tense geopolitical conditions supported c...
The dollar index held around 97.8 on Wednesday after firming in the prior session, as investors awaited key inflation reports that could influence the Federal Reserve's policy stance. The producer pr...
EUR/USD remains steady during the North American session on Friday, poised to end the week with modest gains of over 0.18% as traders brace for the next week's monetary policy decision by the Federal Reserve (Fed). At the time of writing, the pair...
U.S. Treasury Secretary Scott Bessent met with BlackRock Inc executive Rick Rieder in New York on Friday, as the Trump administration continued its search for a new chair for the Federal Reserve, a source familiar with the matter said. Bessent has...
Oil prices rose on Friday after a Ukrainian drone attack suspended loadings from the largest port in western Russia, but gains were capped by concerns about U.S. demand. Brent crude futures settled at $66.99 a barrel, up 62 cents, or 0.93%. U.S....
The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
Annual inflation in the United States (US), as measured by changes in the Consumer Price Index (CPI), rose to 2.9% in August from 2.7% in July, the...