Yesterday, the main loser among the G10 currencies was the Loonie after the US decided to impose tariffs on steel and aluminum imports from Canada, Mexico and the European Union. The euro stayed in a recovery mode as Italy’s Five Star and League agreed to resurrect a coalition, something that removes the risk of new elections. As for today, besides the trade and Italian fronts, investors are likely to focus on the US employment report as well.
Worries of a Global Trade War Increase
The dollar traded higher against most of the other G10 currencies on Thursday. It underperformed slightly against EUR and NZD, while it ended the day virtually unchanged against NOK and CHF. The main losers were CAD, JPY and GBP, in that order.
Yesterday, US Commerce Secretary Wilbur Ross announced the US administration’s decision to impose tariffs on steel and aluminum imports from Canada, Mexico and the European Union, ending a two-month exemption. Responding to the US, Canada’s Foreign Minister Chrystia Freeland said that her nation will...
Read the full financial markets daily report on JFD Research.