Forex Signals – Dollar Up as U.S. China Tensions Escalate- The dollar was up on Thursday morning, with investors turning to the safe-haven asset as U.S.-China tensions flared up overnight.
Hong Kong’s Legislative Council has started voting on national anthem bill, a precursor to the national security laws.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.21% to 97.465 by 12:12 AM ET (5:12 AM GMT).
The USD/JPY pair was up 0.11% to 109 and the USD/CNY pair was up 0.20% to 7.1260.
The AUD/USD pair lost 0.33% to 0.6896. Australia’s Bureau of Statistics said earlier in the day that retail sales for April fell by a seasonally adjusted 17.7% in April.
The bureau also said that GDP fell 0.3% during the first quarter of 2020 on Wednesday.
Elsewhere, USD/JPY rose 0.1% to 109.03, GBP/USD fell 0.3% to 1.2533 and EUR/USD dropped 0.2% to 1.1210.
Overnight, the U.S. administration suspended flights into its country by Chinese airlines effective from June 16, reciprocating after China had barred American carriers from entering its airspace – Forex Signals – Dollar Up as U.S. China Tensions Escalate
Relations between the two countries soured after China’s approval of the enactment of national security laws in Hong Kong and Macau last month.
Still, EUR/USD remains above the 1.12 level that it broke through on Wednesday for the first time since mid-March.
“The market could react positively if the ECB expands the target of its bond purchase or scrap its limit on each country. But in terms of the total size, it is hard to expect a positive surprise now,” he said | Forex Signals – Dollar Up as U.S. China Tensions Escalate.