Trump’s Tariff Hike Announcement Sends USD Lower - Forex News by FX Leaders

Trump’s Tariff Hike Announcement Sends USD Lower

Posted Tuesday, May 7, 2019 by
Arslan Butt • 1 min read

The US dollar’s bullish run came to an abrupt halt after Trump’s latest announcement for additional tariffs on Chinese imports, possibly threatening whatever trade deal the two countries were set to finalize.

At the time of writing, the US dollar index DXY was trading at 97.44, down 0.12%. The Japanese Yen was the biggest gainer as the market sentiment soured, hiking demand for this safe haven asset. USD/JPY was trading at around 110.61, significantly down from the key level at 111.70.

The Chinese Yuan too slipped by nearly 1% on the back of these latest round of tariffs. On Tuesday, the office of US Trade Representative Robert Lighthizer is likely to issue a notice confirming the increase in tariffs on $200 billion worth of Chinese goods from 10% to 25%.

According to Trump’s tweet, this new round of tariffs is expected to come into effect starting this Friday.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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