The dollar has reached almost a month’s low against sterling this morning, with investors wary over intensifying conflict with China. Trump announced at the end of last week that he is ending the relationship with the WHO, which he considers to be biased towards China. Speaking on Fridy, he said that China has ‘ripped off’ America, ‘raided our factories’ and ‘gutted’ industry, all the while conducting ‘espionage to steal our industrial secrets’.
Also not helping at the end of last week was GDP data, which came in at -5%, worse than expected. Later today, we will see manufacturing orders, expected to show a slightly less steep decline in activity. Wednesday will see non-manufacturing business activity, and non-farm payrolls on Friday – forecast to show something of a return to the positive. Unemployment is expected to hit almost 20%.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
