By rae weekend
Singapore (Reuters) – The dollar bounced slightly Thursday thanks to an increase in yields of the American treasury, although the currencies have negotiated in close ranges while investors had trouble determining the impact of the climbing of the world’s trade war against US inflation and growth.
US President Donald Trump has threatened new prices on European Union property, as the main American trade partners said they would retaliate for trade barriers already erected by him.
An increase in tensions of global trade and concerns about the risks of American recession has rocked world markets and has sparked enormous volatility on the foreign exchange market, while traders see help and anxiety about changes in Trump’s whip policy.
The markets were a little calm during the first Asian session on Thursday while investors obtained a break in the burst of the headlines concerning American trade policy.
The dollar increased by 0.05% against Yen to 148.31, recovering some of its losses earlier in the week when it fell to a hollow of five months against Japanese currency, because fears of an economic slowdown in the United States sparked a rush to Japanese currency as a refuge.
The Swiss Franc also moved away from the three -month peak on Monday and rose to 0.8817 for the dollar.
Data published on Wednesday has shown that American inflation has increased a little less than scheduled in February, but the relief it offered could be temporary because the data did not fully capture the Trump’s rates cascade.
“What is more uncertain is the prospects of future inflation and the state of American economic activity, largely thanks to the unpredictability of American trade policy,” said James Reilly, market economist superior to Capital Economics.
“It is these problems that stimulate the markets, and (the) report gave few new information on one or the other.”
But the yields of the US Treasury pushed higher while the merchants have bet on a declining inflation collection, the reference yield at 10 years is stable almost a week’s summit to 4.3047%.
The two -year yield was little changed to 3.9866%.
This kept the sustained dollar and eliminated the top of the top five months of Tuesday, the single currency going the last $ 1,0890.
Sterling increased 0.06% to $ 1,2968, while the dollar index moved from Tuesday’s lowest and refreshed at 103.57.
The Canadian dollar was little changed to $ 1,4372 CA.
On Wednesday, the Bank of Canada reduced its 25 basic point policy rate and raised concerns about inflationary pressures and lower growth resulting from the uncertainty of trade and Trump prices.
“Prices are pressured on the inflation of the global economy, which would be a nightmare for central banks … Central bankers are simply more prudent and kept their minds open to what will happen,” said Carol Kong, a strategist for the Commonwealth Bank of Australia.
