Here’s what’s on the agenda for Tuesday, June 10th:
US Dollar (USD) The dollar seems to be holding steady among colleagues during the European trading session. Investors are being a bit cautious, waiting for results from the US-China trade discussions. The only notable data on the US Economic Calendar today is the May NFIB Optimism Index.
US Dollar Prices over the past 7 days
This table illustrates how the US dollar (USD) has changed value against major currencies over the last week. Interestingly, the dollar showed particular strength against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.27% | 0.11% | 1.24% | -0.05% | -0.31% | -0.22% | 0.47% | |
| EUR | -0.27% | -0.13% | 1.01% | -0.29% | -0.56% | -0.40% | 0.21% | |
| GBP | -0.11% | 0.13% | 1.11% | -0.17% | -0.43% | -0.29% | 0.34% | |
| JPY | -1.24% | -1.01% | -1.11% | -1.28% | -1.56% | -1.44% | -0.70% | |
| CAD | 0.05% | 0.29% | 0.17% | 1.28% | -0.32% | -0.13% | 0.52% | |
| AUD | 0.31% | 0.56% | 0.43% | 1.56% | 0.32% | 0.15% | 0.78% | |
| NZD | 0.22% | 0.40% | 0.29% | 1.44% | 0.13% | -0.15% | 0.63% | |
| CHF | -0.47% | -0.21% | -0.34% | 0.70% | -0.52% | -0.78% | -0.63% |
The heatmap presents how major currencies have altered against one another, with the base currency indicated in the left column and the quoted currency at the top. For instance, selecting US dollars against the Japanese yen will show the change rate in the corresponding box.
With few high-impact data releases, the start of the week saw relatively calm trading measures in financial markets. Wall Street finished the previous day with slight gains, while the USD index saw a small dip. On Tuesday morning in Europe, USD index futures remained mostly unchanged and slightly above 99.00.
Recent data from the UK’s National Statistics Office revealed an increase in the ILO unemployment rate to 4.6% over three months, from 4.5% previously reported in April. Additionally, annual wage inflation, noted by the average earnings excluding bonuses, decreased from 5.5% to 5.2%. The reported job change was 89K, a decrease from the earlier figure of 112K.
GBP/USD continues to struggle just below 1.3550.
Shifting gears to EUR/USD, it seems to hover around 1.1400 in the early European sessions. Chinese Vice President Han Chang has indicated that China is eager to collaborate with the European Union to expand cooperation and nurture the relationship further. Today’s economic calendar for Europe will also feature June’s Sentix Investor Confidence data.
Bank of Japan (BOJ) Governor Midorida reiterated on Tuesday that he would consider raising interest rates if inflation was consistently near 2%. Following a somewhat erratic session on Monday, USD/JPY hovered around 144.50 after a slow start on Tuesday.
AUD/USD fluctuated in narrow ranges around 0.6500 during the European morning. Data from Australia revealed that Westpac’s consumer confidence dropped to 0.5% in June from 2.2% in May.
As for gold, it managed to hold its ground after dipping below $3,300 early in the Asian session on Monday, ending the day positively. XAU/USD has remained steady on Tuesday, continuing its sideways movement beyond $3,300.
US-China Trade War FAQ
In general terms, a trade war refers to an economic dispute between two or more nations stemming from extreme protectionist policies. This often involves implementing trade barriers, like tariffs, leading to increased import costs and, consequently, a higher cost of living.
The conflict between the US and China initiated in early 2018, when then-President Donald Trump imposed trade barriers on China over allegations of unfair trade practices and intellectual property theft. In retaliation, China placed tariffs on various US goods, like cars and soybeans. The situation intensified until the signing of a trade agreement in January 2020, which aimed to bring about structural reforms and greater stability in the economic relationship. However, the onset of the coronavirus pandemic shifted focus back to the tensions. It’s noteworthy that President Joe Biden, who succeeded Trump, retained and even added to these tariffs.
With Donald Trump’s return as a presidential candidate, there’s a new wave of anxiety looming over US-China relations. During his 2024 campaign, he has promised to impose a 60% tariff on Chinese imports upon taking office in January 2025. This potential return to stringent measures could significantly alter the global economic landscape, particularly by affecting investments and the supply chain.
