020 7898 0500The dollar weakened against the euro and sterling yesterday following reports that North Korea is prepared to denuclearise if the regime’s security is guaranteed. Investors saw this as an opportunity for a sell-off of the greenback, although it could have been worse; sterling had made some strong gains before falling back a little as the afternoon progressed.
Dangers of a trade war have not yet abated, despite many people urging Trump to reconsider. In fact, given the weight of opposition it is possible he could change his mind, especially as it is not entirely clear why he made his mind up in the way he did in the first place, but you simply never can tell with him. The EU proposed retaliatory tariffs against US goods, which might yet dissuade Donald. But then, he might see it as a challenge he must rise to.
Today we will see the balance of trade figures for January, as well as the ADP employment change figures for February.
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