The euro-to-US dollar exchange rate has recovered in the second half of the week, but new fluctuations remain possible. The price stands at 1.1677. The market has become concerned about trade war again. Specifically, Washington imposed import duties against Chinese products worth $32 billion in early July, but this week expressed intentions to tighten the tariffs – up to $200 billion. In case of the imposition, over 45% of all Chinese supplies to the USA will be subject to import duties. These figures are too significant to leave the world economies aside this issue.
Despite the statements, Beijing, in its turn, is yet to take countermeasures against the USA. Still, China definitely can do at least similar harm to the USA. As a result,t demand for save assets strengthens, and US dollar goes up.
The US dollar also got support from the recently released reports in the USA. PPI in June rose just by 0.3% m-o-m (0.5% up earlier), though was above the expectations anyway. The year-to-day PPI gained 3.4% posting the sharpest upturn over the past 8 years.
The June CPI in the USA is expected to be released today. According to the forecasts, the rate can increase by 0.2% m-o-m, though in case of bigger upturn the greenback will get a chance for a hike.