Dollar rises in anticipation of new tariffs on imports from China

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The American currency strengthened across the entire spectrum of the market, supported by a few factors. Against this background, the Euro is testing a 1.5-week lows around 1.1650, the pound is approaching the mark of 1.28, losing 20-DMA, while the yen fell to levels slightly below 111.00.
The dollar went on the offensive amid growing nervousness of investors in the run-up to Thursday when the United States should announce new tariffs on imported Chinese goods worth $ 200 billion. This volume of duties and a high probability of reflex action from the Beijing natural deter players from buying higher-yielding assets in favor of the “American”. So in the coming days, support for this factor can be strengthened.
There are also positive expectations for Friday’s key report on the US labor market – employment growth in the non-agricultural sector is projected at 190 THD vs 157 in July and wages should sustain growth of 0.3%. Based on the fact that the potentially favorable results will strengthen expectations of the fed rate hike, traders decided to buy dollars, but such scenarios excluded subsequent sales “facts”. So at the end of the week be careful.
Another factor that fuels the interest to buy USD, lurks in emerging markets. The devaluation of currencies this segment is forcing players to seek shelter in the dollar, which is benefiting from the tight monetary policy of the fed and trade wars trump. And the aggravation of the situation on this front is able to strengthen the position of “American” in the future.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS