Dollar Higher on Return of Risk Appetite
The US Dollar came back into favor with FX traders on renewed interest in higher risk currencies. Analysts say that that return was due, in part, to indications that the brewing trade war between the United States and its trading partners does not seem to have yet dented economic momentum. Markets have been primarily focused on the latest key economic data which showed an increase in US private sector jobs that helped lift the greenback, while a strong gain in imports from Germany gave a boost to the common currency Euro.
As reported at 11:19 am (BST) in London, the EUR/USD was trading at $1.17, down 0.05%; the pair has ranged from a session trough of $1.17146 to a peak of $1.17627. The USD/JPY is trading at 111.248 Yen, up 0.38%; earlier, the pair hit a session high of 111.279 Yen while the low is recorded at 111.833 Yen.
Trade War Repercussions Still a Concern
Currency strategists say that while markets seem to have taken the threat of a US-Sino trade war in relative stride, it does appear that they might be a bit too optimistic. One strategist in Tokyo believe that markets haven't yet priced in a possible worst-case scenario. Looking at Asian currencies, the AUD/USD is trading at $0.7443, down 0.25% and the NZD/USD is trading at $0.6822, down 0.2524%.