US Dollar drops sharply on Trump’s tweets, bonds rally and Wall Street extends losses. EUR/USD erases weekly losses, back above the 20-day moving average. The EUR/USD pair has risen now almost a hundred pips from the weekly low it reached earlier at 1.1050. As of writing trades at 1.1145, the highest level in a week, as Wall Street drops sharply and the DXY tumbles. Powell offset by trade war escalation The greenback fell dramatically across the board on the back of a new escalation in the trade war between the US and China. Earlier today China announced retaliatory measures, including higher tariffs for $75B US goods. Recently, US President Trump mentioned in a tweet that later today, he will announce his response to the new Chinese tariffs. After trading in positive ground, equity prices in Wall Street are sharply lower now. The DOW JONES falls 1.35% and the NASDAQ 1.63% in response to recent comments from Trump. He also criticized Fed’s Chair Powell again. Expectations about what the White House will mention increased even more concerns about the impact on the economy from the escalation in the trade war. Recent events overshadowed Powell’s speech in Jackson Hole. He said the central bank is ready and prepared to provide more stimulus if the current global environment hits the US economy. The decline of the US Dollar is taking place even against currencies like the Aussie, usually more affected negatively from the US-China trade conflict. Some emerging market currencies have trimmed losses versus the greenback. Meanwhile, EUR/USD holds at the top, after rising from three-week lows to one-week highs in a few minutes. The bearish pressure on the greenback appears to be intensifying. The Euro is among the top performers after the Yen and the Swiss franc. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Huobi DM are launching instant settlement for Bitcoin contracts FX Street 4 years US Dollar drops sharply on Trump's tweets, bonds rally and Wall Street extends losses. EUR/USD erases weekly losses, back above the 20-day moving average. The EUR/USD pair has risen now almost a hundred pips from the weekly low it reached earlier at 1.1050. As of writing trades at 1.1145, the highest level in a week, as Wall Street drops sharply and the DXY tumbles. Powell offset by trade war escalation The greenback fell dramatically across the board on the back of a new escalation in the trade war between the US and China. Earlier today China… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.