EUR/USD reaches six-week high near 1.1450 as US Dollar slides on trade jitters
EUR/USD edges up during the North American session to hit a six-week high of 1.1449, poised to stay above 1.1400 as the US Dollar drops to levels last seen in April as the “Sell America” trade continues. Arising trade tensions between the United States (US) and China, as well as the Eurozone (EU), prompted investors to favor the Greenback with the Euro posting gains of over 0.68%.
Recently, economic data in the US revealed that business activities in the manufacturing sector remained in contractionary territory, according to the Institute for Supply Management (ISM).
Last week, US President Donald Trump revealed that China had violated its agreement with Switzerland. Consequently, he threatens to impose 50% tariffs on aluminum and steel imports, effective on June 4, sparking a flight to safe-haven assets, except the US Dollar.
Beijing responded to Washington’s accusations as “groundless and threatened to respond with forceful measures.”
In other trade news, EU Trade Commissioner Sefcovic is to meet USTR Greer in Paris on Wednesday, according to a spokesperson.
The EU’s economic schedule featured the release of the HCOB Manufacturing Purchasing Managers Index (PMI) for May, with most readings coming mixed, with only Spain showing signs of expansion.
Source : Fxstreet
