26/06/2018 – Dollar Falls As Trade Tensions Escalate

USD

The dollar fell slightly on Monday as worries about escalating trade tensions between the United States and other leading economies kept risk appetite muted.

The U.S. Treasury Department is drafting policy that would block firms with at least 25 percent Chinese ownership from buying U.S. companies with “industrially significant technology,”

Trump plans to bar several Chinese companies from making investments in U.S. tech. It was reported that the administration wants to block additional technology exports to China. U.S. Treasury Secretary Steven Mnuchin said that investment restrictions from the Treasury will not be specific to China but would apply to all countries that are trying to steal US technology.

Donald Trump on Friday also threatened to impose a 20 percent tariff on cars imported from the European Union, The EU has said it would be forced to retaliate if this tariff was imposed.

GBP

Britain’s departure from the European Union has led nearly half of big companies from the rest of the EU to cut investment in UK.

The survey, by a leading law firm, also found that three quarters of bosses wanted Brussels to make concessions to Britain to secure a better trading relationship after it leaves the EU in early 2019.

Key Announcements

09:30 – GBP: BBA Mortgage approvals (May); expected to be higher at 38,200 from 38,049
15.00 – USD: CB Consumer Confidence; Forecast at 127.6 against previous of 128.0