As the trade war between the USA and China rages the Greenback appears to be the default currency for investors as risk moves off the table and into safe-haven buying. Trade uncertainty has boosted the US Dollar in the last few months as the US economy is seen as stronger vs other economies evidenced by the Federal Reserve holding a more hawkish view where they raise rates to tame possible inflation as other central banks remain in the offensive mode to stoke inflation.
The US Dollar Index was a shade down on Tuesday and did momentarily fall just under 95, however, the bulls drove it back and closed the session around 95.19. The Dollar has failed to break string resistance up at the 95.50 level in over a year. Against the majors, EUR/USD buying 1.1597, GBP/USD sitting at 1.2938.
In other news, Japan’s wage growth hit a 21-year high according to Japans Ministry of Health, while Household spending fell 1.2 percent in June from a year earlier.
Looking ahead, we have China’s latest trade figures for July with analysts expecting the country’s export growth to decelerate last month amid escalating US-China trade dispute.