The dollar is mixed this morning, looking strong against the euro and weak against the pound. It’s under continued pressure as US-China trade relations intensify.
The US Treasury Department has designated China as a currency manipulator. Following this determination, the department said, “Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions.” This formal designation is the first since 1994.
Trump has therefore continued to urge the Federal Reserve to weaken the dollar in response. It seems as though the trade war has now escalated into a currency war also, making the possibility of an agreement seem even more unlikely.
US ISM Non-Manufacturing PMI dropped to 53.7 in July, the lowest since August 2016.
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