- Mexico joins the league to bear the burden of the US-led trade protectionism.
- China takes advantage of the latest anti-US momentum and offers criticism/actions.
- Second-tier economic data can offer additional directives.
Given the Trump & Co.’s additional contribution to the global trade pessimism, the US Dollar Index (DXY) refrained from its previous north-run as it seesaws near 98.10/15 while heading into the Europe market open on Friday.
The gauge that compares the US Dollar (USD) versus its major six counterparts witnessed pullback as investors rushed to safe-havens after the US President Donald Trump’s latest tariffs on Mexico.
Adding to the woes could be warning to the US from Chinese lawmakers and Huawei’s action against the US workers.
Trade sentiment was further hit by disappointing China PMI that signaled contraction of the manufacturing activities by the world’s largest industrial player.
Investors may now focus on second-tier data from the US and political headlines in order to determine near-term market mood.
At the economic calendar, personal income-spending, Chicago purchasing manager index (PMI) and Michigan consumer confidence could direct the greenback moves.
While personal income is expected to rise to 0.3% from 0.1%, personal spending could soften to 0.2% from 0.9% prior. Moving on, Chicago PMI might offer intermediate relief to the USD buyers if matching 53.7 forecasts against 52.6 prior but consumer confidence data could pour cold water on the mood given it meets 101.50 market consensus versus 102.40 previous readouts.
Technical Analysis
Failure to cross the latest high of 98.37 can fetch the quote to 97.80 and current month low near 97.55 if sellers conquer 98.00, if not then 98.37 and 99.49 plotting high of May 11, 2017, can please buyers.
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