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Forex: Dollar Creeps Lower on Cooling Hopes of Delay to Tariffs on China

Published 12/10/2019, 01:15 PM
Updated 12/10/2019, 01:36 PM
© Reuters.
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Invesing.com – The U.S. dollar edged lower on Tuesday, as uncertainty over whether the U.S. would delay planned tariffs on imporrts from China continued to weigh on sentiment.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.17% to 97.48.

Larry Kudlow, President Donald Trump's top economic advisor, reportedly said he could not confirm the further tariffs on China would be delayed.

That offset positive news on trade amid a Wall Street Journal report suggesting that the U.S. was mulling a delay to imposing tariffs on China.

Without a deal nor a delay to tariffs before the Dec. 15 deadline, the U.S. is slated to impose tariffs on another $156 billion on Chinese goods.

These would include cellphones, laptops and tablets made in China, along with toys, office and schools supplies, some clothing, and even frozen Alaskan pollock fillets.

The dollar was also hurt by a rise in both the euro and the pound.

EUR/USD rose 0.22% to $1.1086 as economic data, including a survey of business sentiment in Germany, was not as bad as feared.

With just two days until U.K. voters head to the booths, the pound continued to rack up gains against the greenback amid expectations that the ruling Conservative party will secure a parliamentary majority.

Firmer third-quarter U.K. economic growth also underpinned a bid in sterling.

GBP/USD rose 0.32% to 1.3184.

As a conservative victory is almost fully priced-in, "even a landslide victory might hardly see the pound rise," said Oliver Allen at Capital Economics.

USD/JPY rose 0.19% to Y108.75 and USD/CAD was flat at C$1.3237.

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