Yesterday, tariffs returned to the front seat, with the first report that hit the wires suggesting that the US and China were seeking to resume talks in order to find common ground. Nevertheless, during the Asian morning today, a new report said that the US is considering to increase the rate in the next round of tariffs to Chinese goods. As for today, attention is likely to turn to the FOMC monetary policy decision.
US is Considering a Higher Tariff rate on Chinese Goods
The dollar traded higher against all but one of the other G10 currencies on Tuesday. It gained the most against JPY, SEK and CHF in that order, while it underperformed only against CAD.The Loonie was the sole winner against its neighboring US dollar, strengthening after data showed that Canada’s GDP accelerated to +0.5% mom in May from +0.1% in April, driving the yoy rate up to +2.6% from 2.5% previously. Despite yesterday’s negative news on NAFTA, accelerating growth combined with the rise in Canada’s headline inflation rate for June may have further increased market participants' confidence over the prospect of another BoC rate hike by the end of the year.
Tariffs returned back to the spotlight yesterday, with the first report that hit the wires suggesting that the US and China were seeking to resume talks in order to find common ground on trade. The news gave a small boost to global...
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