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Kantox currency update: dollar ticks up on renewed trade tensions

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The major currency crosses consolidated within previous ranges on Thursday, with the US dollar appreciating modestly for the first time in five days, as market sentiment deteriorated after US President Trump announced his intention to impose a new round of tariffs on Chinese imports in September.

EUR/USD: pulls back below 1.1700: The euro put an end to a four-day rally from 1.1530 to 4-week highs at 1.1735 before and pulled back on Thursday to hit session lows in the mid-range of 1.1600. As at London market opening times, the EUR/USD is trading at 1.1675.

GBP/USD: consolidating gains above 1.3000The pound ticked down on Thursday after hitting 4-week highs at 1.3040 although it remains steady above 1.3000 after having rallied from 1.2850 area on Wednesday, fueled by Brexit negotiator Barnier’s hints to a partnership agreement between the UK and the EU. As at London market opening times, the GBP/USD is trading at 1.3010.

USD/JPY: pares gains and returns to 111.00. The dollar retreated on Thursday from three-week highs near 112.00, with the yen stronger across the board on safe haven moves triggered by Trump’s pledge of imposing new tariffs on imports. As at London market opening times, the USD/JPY is trading at 110.95.

In the Calendar Today

Today, Eurostat will release the preliminary Consumer Prices Index which, according to the market consensus is not going to show any progress from the previous month. With the core inflation far below the ECB’s 2% target for price stability, the risk of this event is likely to be negative for the euro.

09:00 GMT        EZ: Consumer Prices Index (YoY) (Aug)
Previous: 2.1%             Expected: 2.1%