The dollar is weak this morning against both the euro and the pound, possibly due to recession fears and trade war uncertainty. There are increasing concerns that a recession could hit the US economy, due to a yield curve which inverted yesterday for the first time since 2007. This may spark potential for further interest rate cuts from the Federal Reserve.
In US-China trade news, it is still uncertain whether talks in September will happen. President Trump suggested via Twitter than he should have a ‘personal meeting’ with President Xi Jinping to discuss the escalating protests in Hong Kong. This is the first time that he has linked the situation in Hong Kong with trade talks. He also said that “good things were stated on the call with China the other day.”
Today, focus turns to the release of a flurry of data for the US, including retail sales and industrial production. The dollar may react if the data misses expectations.
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