Dollar Struggles for Traction after Trump Remarks

The US Dollar came under some sell pressure after the US President announced his decision to implement tariffs on specific imports, namely steel and aluminum. That news resulted in the reverse of momentum for the greenback which would otherwise have been headed for a recovery. Donald Trump said that the imposition of the tariff was intended to protect American industry; the announcement also resulted in a sell off on Wall Street with the S&P down 1.11%, and the Dow Jones Industrials losing 1.68% of its value.

As reported at 10:14 am (JST) in Tokyo, the USD/JPY was trading at 106.032 Yen, down 0.06%; the pair has ranged from a session trough of 106.004 Yen to a peak of 106.298 Yen. The AUD/USD pair was down 0.07% and trading at $0.7760 while the NZD/USD was trading higher at $0.7272, a gain of 0.029%.

Geopolitics in Focus

Over the weekend, the Euro will likely draw the market’s focus as the parliamentary election in Italy is scheduled for Sunday. Also on Sunday in Germany, leading political parties will make a decision on a coalition deal which could help Angela Merkel, the German Chancellor, secure a fourth term. Before then, however, Theresa May, the British Prime Minister, will discuss her plans to ensure a sound trading partnership between the UK and the European Union; that speech will take place later today.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.