EURUSD Jumps After Trump Hints at Car Tariff Hold-Off

Jacob Friedman

Euro and Dollar notesThe single European currency showed some signs of improving on Wednesday and into Thursday after US President Donald Trump announced that he may hold off on adding tariffs to cars brought into the country from abroad.

The euro rose 0.05% against the US dollar, reaching $1.1207 in the pair at one stage. This was despite the fact that a government leader in one of the major European economies suggested that it was time to alter the EU’s fundamental rubric. Matteo Salvini, Italy’s Deputy Prime Minister, hit out at the bloc’s rules again.

However, the news that Trump intends to avoid tariffs on cars brought into the US for six or so months helped to assuage the currency’s problems.

Elsewhere, the Australian dollar, which took a battering earlier this week due to concerns over the Chinese economy, went down even further, this time by 0.1% to $0.6922.

The US dollar itself did not show much change against the Japanese yen, which stood at 109.500 at one stage.

With the foreign exchange trading week now beginning to draw to a close, there’s still plenty to monitor for on the economic calendar.

Today (Thursday) sees a number of releases out of the US covering April. Housing starts information is expected at 12.30pm GMT and is expected to show a month on month change from 1,139,000 to 1,205,000. Building permits information for the same month is expected to shift from 1,288,000 to 1,290,000 month on month.

The usual round of employment data releases are due at 12.30pm GMT as well. Initial jobless claims for the dates around May 10th are due out and are expected to show a change from 228,000 to 220,000. Continuing jobless claims for the dates around May 3rd are predicted by analysts to show a change from 1,684,000 to 1,680,000.

Today there will also be speeches from major global central bankers, including Luis De Guindos who is Vice President of the European Central Bank (ECB). He is due to speak at 12.30pm GMT.

The Bank of Canada’s Stephen Poloz will be speaking at 3.15pm GMT. It’ll be back to the ECB at 6pm GMT when Benoit Coeure from the Bank’s Executive Board will speak.

Looking ahead to tomorrow, the European consumer price index for April is due at 9am GMT. Month on month, this is expected to show a shift from 1% to 0.7%.

Europe-wide construction output figures for March are due at 9am GMT too. Year on year, these are predicted to move from 5.2% to 1.8%.

The preliminary Michigan consumer sentiment index for May is out at 2pm GMT. This is expected to shift from 97.2 to 97.5.

Two major US Federal Reserve central banker speeches will occur later in the day. Richard H. Clarida, Vice Chairman of the Board of Governors, will speak at 5.40pm GMT. While John C. Williams, who is the president of Federal Reserve Bank of New York and a member of the Federal Open Market Committee, will speak at 6pm GMT.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.

Jacob Friedman
Forex.com logo74% of clients lose money. Capital at risk.

- Trusted Global Market Leader
- Online FX & CFD Trading
- 180+  Global Markets, 84 FX pairs, 65 shares, 17 popular indices and more
- Forex, Indices, Commodities, Equities & Bitcoin
- Available to US traders

eToro LogoYour capital is at risk

- Trade 15 cryptocurrencies
- Beginner friendly