Euro to US dollar rate shows attempts to equilibrate

Posted 12 July, 2018

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.

Previous forecast

13 July, 2018 17:13

← Sterling loses grounds further by week's end

The sterling is slackening against the US dollar on Friday. Players have been selling off the currency for the third day in a row. The price stands at some 1.3156. Meanwhile, the UK is hosting the visit by the US President Donald Trump. Meetings with the UK Prime Minister Theresa May have been held recently, though further consultations and negotiations will probably take place.

Sterling loses grounds further by week's end

Next forecast

12 July, 2018 13:39

Bank of Canada draws line in soft monetary policy →

After the monthly meeting on July 11, the Bank of Canada raised the interest rate to 1.5%. In Q1 the Central Bank's representative voiced plans for the summer rate revision depending on the CPI dynamics. As it was expected, the regulator increased the rate, so Canada has broken the trend and ended a 7 year long soft monetary period.

Bank of Canada draws line in soft monetary policy
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