After a poor day yesterday, the dollar is in a stronger position this morning, recovering slightly from news of US-China tensions. President Trump has played down the prospect that this trade war could continue for a while. However, St. Louis Federal Reserve Bank President, James Bullard, stated that we could see ongoing trade tensions for years to come.
After being labelled a currency manipulator by the US, the People’s Bank of China responded by saying that they have not used exchange rate as a tool to deal with trade disputes, and warned the US to “rein in its horse before the precipice, and be aware of its errors, and turn back from the wrong path.”
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