(Bloomberg) -- The dollar advances against all of its peers in the Group of 10 Monday after President Donald Trump escalated trade tensions over the weekend. Traders are focused on US inflation data set to be released Tuesday.
- The Bloomberg Dollar Spot Index rose 0.2%, trading up for a third day with the technical outlook pointing to further gains
- Trump posted two letters to social media over the weekend that said a 30% tariff rate for Mexico and the EU will take effect on Aug. 1 if they can’t negotiate better terms
- EU Trade Commissioner Maros Sefcovic says there’s still potential to continue US trade negotiations
- Forecasters are predicting an acceleration in June CPI data. Advances in tariff-exposed categories including furniture, toys and recreational goods, as well as cars, are seen putting an end to the streak of benign figures
- Trump adviser Kevin Hassett is rising in race for the Fed chief as selection process remains fluid, according to Washington Post
- “I’m in the ‘all-talk-until-it-happens’ camp,” said Helen Given, a foreign-exchange trader at Monex Inc. “We saw the initial shock to USD back in the spring when Trump’s rhetoric ratcheted up against Powell, so markets are at this point shrugging it off until something concrete comes around”
- EUR/USD fell 0.2% to 1.166; down for a fourth session
- “We go long EUR/USD targeting 1.20,” Citi’s Daniel Tobon, Osamu Takashima and Brian Levine wrote Friday in a note, citing “downside risk into US CPI” will be capping any extra dollar gains. “The recent EUR/USD pullback provides attractive levels for longs”
- USD/JPY traded 0.2% up at 147.75
- GBP/USD fell 0.5% to 1.3426, heads for its longest losing streak against the dollar in two years
- Options traders are turning against the pound as the UK currency heads for its longest losing streak against the dollar in two years
- AUD/USD declined 0.5% to 0.6545
- Some information comes from FX traders familiar with the transactions who asked not to be identified because they aren’t authorized to speak publicly
Reporting by Anya Andrianova and Vassilis Karamanis
