The U.S. Dollar eased back on Monday. The declines came after a renewed threat of trade tariffs. The U.S. administration announced that it will impose new tariffs of 10% on over $200 billion in goods imported from China. A further increase to 25% is expected from January.
President Trump warned that retaliatory measures from China could lead to immediate tariffs on an extra $267 billion in goods of imports.
Data from the U.S. was limited to the Empire State Manufacturing Index. The index slipped to 19 in September. This was lower than the estimates and down from 25.6 from the month before.
In the European session, the British pound posted strong gains, rising to a seven-week high. Brexit news was the primary driver. The EU’s chief Brexit negotiator, Michel Barnier told reporters that the talks between the EU and the UK were being conducted in a spirit of good cooperation.
The Eurozone’s inflation data confirmed that headline CPI rose 2.0% on the year in August, as expected.
The day starts off with the ECB President Mario Draghi speaking at an event in Paris. Draghi’s speech comes in the backdrop of the recent ECB meeting where the central bank did not make any major changes to monetary policy.
The European session is relatively quiet for the remainder of the day.
The NY trading session starts off with the manufacturing sales report from Canada. Forecast points to a 1.0% increase on the month. Later in the evening, the current account and trade balance numbers from New Zealand are due. The data comes ahead of the New Zealand’s quarterly GDP report due later in the week
