The dollar is weak against the euro and strong against the pound this morning. It’s lost its footing due to escalations in the US-China trade war. After President Trump threatened to place tariffs on another $300 billion worth of goods at 10%, China have responded. They let the Yuan tumble to its weakest level in over a decade and asking state-owned companies to suspend imports of US agricultural products.
As a result of this, investors have increased bets that the Federal Reserve will implement further rate cuts. It is thought that the People’s Bank of China had previously been holding off from allowing a weaker Yuan due to US-China trade negotiations.
Non-Farm Payrolls came in as expected on Friday, with 164,000 jobs created in June. However, the results had little impact on the markets.
ISM Non-Manufacturing PMI will be released today for the US.
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