The dollar strengthened briefly against the pound, as the latter drifted downward on Brexit uncertainty. The US and EU have indicated that they will soon reopen trade talks, which Donald Trump wants to use to cut the United States’ $150 billion dollar trade deficit. Trump threatened earlier this week to impose tariffs on $11 billion of EU trade imports.
The US administration is hoping for ‘comprehensive’ agricultural market access, but the EU’s shopping list is shorter, hoping just to focus on industrial tariffs and proof of standards. It remains to be seen who will have the upper hand.
Initial jobless claims came in better than forecast yesterday, at 196k instead of the expected 215k. Today, we’ll see inflation expectations and the spring meeting of the World Bank Group-IMF.
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