The dollar is gaining with Regoing Trump commercial concerns

Written by Karen Britiel

New York (Reuters) -The dollar said previous losses against the euro on Friday after US President Donald Trump said that the United States is ending trade talks with Canada and that he would consider bombing Iran again, and overcoming the appetite of risks and somewhat shares.

Adam Patton, chief currency analyst at the Forex, said.

“The knee was to buy the US dollar, but as soon as the smoke gave up, it is likely to recover. The trade war was like a dollar cloud throughout the year,” Patton said.

US Treasury Secretary Scott Bessin said earlier on Friday that the various commercial deals of the Trump administration with other countries can be done by the Labor Day holidays on September 1.

The Canadian dollar extended losses a day, but after Trump said that the United States immediately ends commercial talks with Canada in response to the country’s digital services tax on technology companies. It has decreased by 0.5 % against Greenback at $ 1.37 per dollar per dollar.

Trump also sharply criticized Iran’s supreme leader, Ali Khounai, plans to lift sanctions on Iran and said he would consider bombing Iran again if Tehran enriches uranium to disturbing levels.

The dollar fell to its lowest level for three and a half years against the euro earlier on Friday, as merchants are betting that the federal reserve will reduce interest rates and perhaps sooner than it was expected previously, as some American data indicate a weak economy.

A report on Friday showed that the spending of American consumers was unexpectedly decreased in May, where support faded from the pre -emptive purchase of goods such as cars before the customs tariff, while the monthly inflation remained moderate.

A weekly job report showed on Thursday that continuous unemployment claims increased to the highest level since November 2021, while the total number of local products for the first quarter reflects a sharp reduction in consumer spending.

“Some of our data have not been particularly good during the past few days,” said Le Breen, a DRW Trading expert in Chicago.

The testimony of the President of the Federal Reserve, Jerome Powell, was explained by the US Congress this week as Dofish after he indicated that the price cuts are likely if inflation does not increase this summer as expected.

Reports that US President Donald Trump can also appoint an alternative to heal in the coming months, adding to the weakness of the dollar.

The new Federal Reserve Chair is expected to be more occurrence and early appointment may undermine the Powell’s effect by working as a shadow chair before the end of the Powell state in May.