Forex - Euro Pushes Higher, Dollar, Yen Slip Lower
The euro pushed higher on Tuesday as political risk in Germany eased, while the dollar and the yen slipped lower as concerns over trade tensions subsided, but investor sentiment remained fragile.
EUR/USD was up 0.26% to 1.1669 by 04:02 AM ET (08:02 GMT) after ending the previous session down 0.32%.The euro was boosted after German Chancellor Angela Merkel reached a deal on immigration policy with coalition partners, resolving a row that had thrown into doubt the future of the government.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.2% to 94.41.
Asian equities markets staged a late rally after tumbling overnight, but investors remained on edge ahead of a looming deadline in the trade spat between the U.S. and China.
U.S. tariffs on $34 billion of Chinese imports are due take effect July 6, with China set to retaliate with tariffs of its own on the same value of U.S. products.
U.S. President Donald Trump is pressing ahead with plans to penalize major trading partners, including the European Union, Mexico and Canada as part of his 'America First' policy that many investors fear will hit global growth.
The dollar edged higher against the yen, with USD/JPY edging up to 110.98.
The euro also gained ground against the yen, with EUR/JPY climbing 0.36% to 129.52.
The pound was higher, with GBP/USD rising 0.27% to 1.3156.
The trade sensitive Australian and New Zealand dollars were also higher, with AUD/USD up 0.64% to 0.7386 and NZD/USD adding on 0.15% to trade at 0.6725.
The Reserve Bank of Australia left interest rates on hold overnight and said that U.S. trade policy is a source of uncertainty over the global economic outlook.