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USD Pares Losses on Easing Trade Tensions; Trump Relaxes NAFTA Demands

Published April 5, 2018
  • The US dollar opened stronger this morning (up 0.33%) after Trump stated that the US is not in a trade war with China, a potential step toward opening negotiations between the 2 countries. USD has pulled back a bit since then (currently up 0.14%) after a wider than expected trade deficit and an increase in jobless claims.
  • On the NAFTA front, the US has reportedly softened its stance on regional content requirements for the auto industry, which was a key point of contention. The Mexican peso has gained on the news.
  • Janet Yellen said yesterday that she feels 3 to 4 rate hikes this year is likely. The same day, St. Louis Federal Reserve President James Bullard stated that he sees no reason to increase interest rates any further. Neither of these comments had much impact on the greenback.
  • Oil prices are showing strength after the open, with WTI crude up 1.04% to $64.02 and Brent crude up 1.06% to $68.74 at the time of writing.