The U.S. Dollar closed Tuesday’s session lower as the threat from U.S. President Donald Trump administration of imposing tariffs on EU imports raised the prospect of a further growth decline and after the International Monetary Fund's bearish update on global growth.
Moreover, the U.S. Trade Representative proposed a list of EU products ranging from commercial aircraft and parts to dairy products and wine on which to impose tariffs as retaliation for European aircraft subsidies.
The U.S. Dollar Index which measures the strength of the Greenback against a basket of six major currencies weakened and finished the session at 96.61.
Over in Europe, the single currency fell slightly against the U.S. Dollar after hitting nine-day high price earlier in the session but struggled to advance any higher amid concerns over the U.S. President Donald Trump administration threat to impose tariffs on the EU. EURUSD closed the session at 1.12613.
Meanwhile, the Sterling weakened against the U.S. Dollar after German government spokesman denied a media report saying that Chancellor Angela Merkel was ready to put a time limit on the Northern Ireland backstop in a Brexit agreement. GBPUSD closed the session at 1.30521.
Regarding Safe-havens, the Swiss Franc fell against the U.S. Dollar to settle at 0.99975 USDCHF. On the other hand, the Japanese Yen rose against the Greenback as investors preferred the safe-haven currency after the U.S. announced that it was considering imposing tariffs on a large number of European goods and the International Monetary Fund downgraded its outlook on the global economy. USDJPY settled at 111.144 USDJPY.
Gold closed Tuesday’s session higher against the U.S. Dollar as the dollar weakened after the International Monetary Fund downgraded its global economic growth forecasts for the year. The precious metal closed the session at 1303.85.
Meanwhile, the Canadian dollar weakened against its U.S. counterpart, pulling back from an earlier three-week high, as increased tariff tensions added to the list of uncertainties discouraging investors from taking bets on the loonie. The USDCAD closed the session at 1.33304.
Over in Asia, the Aussie Dollar was almost flat against the U.S. Dollar and closed Tuesday’s session at 0.71259 AUDUSD.
Cryptocurrencies finished Tuesday’s session in the red territories, as Bitcoin, Ethereum, and Litecoin fell to settle at 5201.91 BTCUSD, 175.45 ETHUSD, and 86.17 LTCUSD respectively.
© Copyright 2019 The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects Gotinsiders.com current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable.