The US Dollar unperformed on Thursday and the S&P 500 tumbled 1.33%, falling to its lowest level in more than two weeks. Greenback’s decline began with a testimony from Fed Chair Jerome Powell to the Senate Banking Committee. There, he said that there is “no strong evidence of a decisive move up in wages”. Unlike what had happened at his testimony to congress on Tuesday, this time Fed rate hike expectations fell.
A couple of hours later, US President Donald Trump announced that the country will impose tariffs of 25 percent on imported steel and 10 percent on aluminum. Indexes such as the S&P 500 and the Nikkei 225almost immediately tumbled, but the US Dollar remained resilient. It was not until later that the EU said that it will “react firmly to Trump’s tariffs” that the currency resumed its decline, and the Euro gained. As we have mentioned before, tariffs are good in theory but terrible in practice as it often leads to political artifice.
Sentiment-linked currencies such as the Australian and Canadian Dollars suffered amidst the plunge in stocks as a result of the tariff developments in the world’s largest economy.
日本央行行長黑田東彥周五說，該行將在始於 2019 年 4 月的財政年度前後開始考慮如何退出其大規模貨幣刺激計畫。受此影響，日圓飆升。
日本央行行長黑田東彥周五說，該行將在始於 2019 年 4 月的財政年度前後開始考慮如何退出其大規模貨幣刺激計畫。受此影響，日圓飆升。
- Canadian Dollar drops alongside commodities and risk-sentiment as US Dollar gains
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