The dollar weakened yesterday evening and this morning due to US-China trade developments.
President Trump has said that he would ramp up tariffs on another $300 billion worth of goods at 10% from the 1st of September. This marks the end of the ‘truce’ that was agreed at the G20 summit. It’s unclear whether the Chinese will respond or retaliate to this action, but the Treasury Secretary himself, Steven Mnuchin, pointed out that US consumers would take the brunt of the costs.
Today, the markets look ahead to Non-Farm Payrolls at 1:30pm, as well as average earnings and unemployment data. If we see the data come out above the expected levels, then we may see the dollar strengthen.
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