Reports are suggesting that investors are continuing to purchase the Greenback due to the strong US economy but also in fear of trade wars. For new readers a common trend we see in uncertain times is for investors to buy ‘safe haven’ currencies such as the US Dollar.

The latest update in regards to trade wars, is that China have retaliated with their own set of tariffs for the US which will total $60bn. Many analysts believe that if trade wars continue this will continue to benefit the US Dollar as the trade deficit will narrow and the US economy will handle a protectionism approach far better than emerging markets.

You would expect to see the Dollar lose value after the release which could provide an opportunity for US Dollar buyers. However I expect the boost for US Dollar buyers to be short lived as the inflation numbers Friday are set to be released at 2.3% which is the same as last month, showing that the inflation numbers support further interest rate hikes, which continue to benefit US Dollar sellers.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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