The Euro's latest rally ended as the already strained trade relationship between the Eurozone and the United States intensifies. On Friday, the US President said that he would impose a tariff of 20% on EU car imports; that led to the head of the EU, Jean Claude Juncker, responding that the EU would similarly retaliate. With a trade war brewing, that sent the Euro skidding, despite improved economic data and encouraging news from the Italian government that they would remain in the EU.
As reported at 10:04 am (BST) in London, the EUR/USD was trading at $1.1647, down 0.06% and off the session trough of $1.16286 while the peak is recorded at $1.16730. The EUR/JPY is trading at 127.543 Yen, a loss of 0.48%; the pair has ranged from 127.2860 Yen to 128.3300 Yen.
Yen Higher on China Trade Threat
While the US Dollar is finding support against the Euro, it is a different story against the Japanese Yen. The increase in global trade concerns weighed on risk appetite. The Trump administration said that he would limit Chinese investment in US companies within the tech sector; Trump also said that he intended to limit tech-related imports to China. The USD/JPY was trading at 109.473 Yen, down 0.35%; the pair earlier hit a session low of 109.376 Yen, while the peak is at 110.026 Yen.;