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Forex - Euro Falls, Dollar Rises as Trump Puts Pressure on Fed to Cut Rates

Published 06/18/2019, 11:05 AM
© Reuters.
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Investing.com - The euro was lower against the U.S. dollar on Tuesday, as U.S. President Donald Trump continued to put pressure on the Federal Reserve to ease rates by criticizing the European Central Bank.

EUR/USD slipped 0.3% to 1.1185 by 11:04 AM ET (15:04 GMT), while the U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.1% to 97.20.

Trump slammed ECB President Mario Draghi, who earlier in the day hinted at more stimulus money and rate cuts in the if the eurozone economy does not improve.

Trump later tweeted that the rise in the German DAX due to Draghi’s comments was “very unfair to the United States”.

The president has been urging the Fed to cut rates, which have risen from 0% to 2.5% in the last three years.

The central bank is meeting on Tuesday and Wednesday and is expected to keep rates unchanged, but could cut rates later in the year.

The dollar was slightly lower against the safe-haven Japanese yen, with USD/JPY falling 0.1% to 108.49.

Elsewhere, sterling was slightly higher, with GBP/USD up 0.1% to 1.25, while USD/CAD fell 0.1% to 1.34.

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