Dollar lapsed as investors’ worried over the threat of new U.S. tariffs on Chinese imports, brushing aside data that showed the Asian economy got off to a solid start in 2018.
The dollar dived further against other currencies in Asia on Wednesday morning following news from the White House that hampered the investors’ confidence in the greenback. U.S. president Donald Trump unexpectedly fired the Secretary of State and prepared to impose tariffs on China.
As Inflation news from the United States dominated, investors shrugged off stronger than expected data from China which showed the country’s industrial output expanded at a surprisingly faster pace at the start of the year. Fixed asset investment also handily beat forecasts, while retail sales improved from December.
EUSUD rose overnight to edge toward a recent one-month top of 1.2445 It was last at 1.2409, while GBPUSD was firmer at 1.3990.
The yen did dip briefly after minutes of the Bank of Japan’s January meeting showed most policymakers shared the view that the central bank should “persistently” pursue powerful monetary easing.
In commodities, oil prices inched up after two straight days of losses after data showed a smaller-than-expected build in crude inventories’. crude rose to 60.81. Brent ticked up to 64.70.
Gold prices rose FIRMING AT 1327.80, hitting a one-week high as dollar continued to weaken on mounting concerns over U.S. protectionism.
The economic calendar comes with major economic events with high impact which should provide moderate to high volatility. Important economic data is released both in the European and American Session, with a speech from ECB President Mario Draghi, employment change and industrial production in the Eurozone, US retail sales and weekly US crude oil inventories. Moderate to high volatility is expected for the Euro, the US Dollar and the Canadian Dollar due to the release of the weekly US crude oil inventories.