Dollar Mixed as Risk Appetite Ebbs Ahead of Weekend By

© Reuters. — The dollar was lower against the and early Friday in Europe but higher against risk proxies such as the dollar as traders shunned risk ahead of a weekend set to be marked by geopolitical tensions.

At 3:40 AM ET (0740 GMT), the , which measures the greenback against a basket of six major currencies, was effectively flat at 96.995, but that masked varying performances against the basket’s individual constituents.

Against the yen, the dollar was down 0.2% at 108.20 and closing in on a new 14-month low, while the euro also edged higher against the buck to $1.1281.

The weakened further in the Asian session, a drop later validated by a disappointing data for industrial production and fixed asset investment in May. At only 5.0%, industrial production grew at its slowest rate since 2002.

China also announced its latest countermeasures in its widening dispute with the U.S., raising import tariffs on certain steel pipes from the U.S. and EU by a factor of 10.

In the U.S., a letter signed by hundreds of companies including Walmart (NYSE:) and Target (NYSE:) urged President Donald Trump not to go ahead with his plan to impose tariffs on another $325 billion of Chinese imports, saying they would hit American businesses, farmers and families.

The administration had late on Thursday said it would waive tariffs on bifacial solar panels from Asia, a token de-escalation of tensions given that such panels only account for 3% of the U.S. market, according to Deutsche Bank (DE:) strategist UIrich Stephan.

The dollar may see some movement later in the day after a big dump of U.S. data, which includes May at 8:30 AM ET, May at 9:15 AM ET and the University of Michigan index at 10 AM ET.

The British remains under pressure after the first round of the Conservative Party leadership contest left Boris Johnson as the clear favorite. The pound was 0.1% lower against both the dollar and , ahead of a speech later by Bank of England Governor Mark Carney.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *