With President Trump causing concerns for the global economy this US Dollar forecast looks at Trump’s tariffs and other factors that could impact the US Dollar this week. In the table below you’ll find high to low GBP/USD rate movement and the difference when exchanging £200,000 to USD on Friday:
|Currency Pair||% Change||Difference on £200,000|
It has been announced there will be a further $60bn of further tariffs on China. The EU has been granted a temporary reprieve from the US’ announced action to protect the US from imports of aluminium and steel.
China have retaliated by threatening to impose higher tariffs on several types of goods including aluminium pipe and pork.
Regarding the US $504bn trade deficit with China Trump stated “It is the largest deficit of any country in the history of our world. It’s out of control,” the US president said as he signed a memorandum. “We have a tremendous intellectual property theft situation going on, which likewise is hundreds of billions of dollars.”
Shortly before the tariffs were to be put in place for the EU it was announced by the Trump administration it was exempting Australia, Canada, Mexico, Brazil, South Korea and the bloc.
It will be around £35bn of Chinese imports to the States that will be affected by the new tariffs. 10% on aluminium and 25% on steel.
Be sure to keep a close eye on developments as this is likely to cause uncertainty in regards to world trade and could cause US Dollar weakness.
US Gross Domestic Product figures are released on Thursday. It is a measure of all goods and services from the US. A positive figure could cause Dollar strength.
Also on Thursday we will see Core Personal Consumption Expenditure. It is a measure of personal spending. It excludes products that are effected by the season, such as food and energy. As a key measure of inflation it can cause volatility.
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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