The U.S. dollar declined yesterday and continued its negative momentum overnight.
The greenback came under pressure following a disappointing factory orders print but the news flow was fairly light. Today should be a busier day with new developments both domestic and abroad.
President Trump proposed new tariffs on imports for the European Union including cheese, wine and helicopters. The new threats come as a response to the EU’s subsidies of Airbus which the Trump administration argues is causing harm to U.S. industry. The safe-haven Japanese yen strengthened to its strongest level in a week as a result.
The Canadian dollar has advanced nearly a percent in recent days as the price of oil held near a five-month high as tensions in Libya intensify.
The IMF and the World Bank Group will begin their Spring Meetings in Washington DC today.
What to Watch Today…
- Spring Meetings for IMF and World Bank start today
Complete Economic Calendar can be found here.
The Euro is edging higher this morning, taking advantage of general dollar weakness. There is no major economic data slated for release in the EU today. Traders are keeping an eye on the new trade dispute between Europe and the Trump administration as well as talks between Prime Minister Theresa May and her French and German counterparts. Attention will then shift to tomorrow European Central Bank meeting.
It may be hard to believe, but Brexit news will continue to dictate GBP/USD trade. Prime Minister Theresa May is in Paris today to meet with German Chancellor Angela Merkel and French President Emmanuel Macron. The sterling popped a bit higher after a BBC reporter tweeted that Merkel may be willing to put a five-year time limit on the Northern Ireland backstop. While this may seem inconsequential, it would be a decent concession for May to bring back from continental Europe. There will be more parliamentary votes today or tomorrow as MPs try to mandate May to seek a longer extension that she currently wants, according to Bloomberg News.