The U.S. dollar continued to climb Tuesday morning, rising to highs not seen since April 2017. On the other hand, both Euro and the Pound are near their weakest against the Greenback.
Pound took a hit after Prime Minister Boris Johnson asked Parliament to vote against any delays to his Brexit plan. The opposition will table an emergency motion to kick off a process of rapid legislation meant to force the government not to leave without a deal.
Euro also fell to its weakest in more than two years against the dollar after a survey on Monday showed European manufacturing contracted for seven straight months, reinforcing expectations that the European Central Bank will ease monetary policy at a meeting next week.
Concerns about the global economic growth continued benefitting traditional safe-haven currencies, like the Japanese Yen as a result USD/JPY extended its sideways movement through the early European session on Tuesday, awaiting fresh developments on the US-China trade front.
Producer Prices in the euro bloc will be the sole release in the European Session, while the key ISM Manufacturing PMI is expected across the pond along with the speech by Fed’s Rosengren and American Petroleum Institute’s (API) weekly crude oil stock report for the US.
Oil takes the rounds to one week’s low, flashed on Monday, as oil traders await fresh catalysts while witnessing $54.70 quote on the chart during early Tuesday. The US markets’ close and a lack of major headlines kept highlighting the US-China trade war as the key negative for oil prices. At the political front, the US, Japan and the UK are all on their way to send drones/troops to have a safe oil transit in the Strait of Hormuz. However, Iran seems shrugging off the news as it visits Russia and France to confront the global leader when needed.
Gold holds in bullish territories with plenty of geopolitical risk on the boil. Traders await further evidence that the trade talks between the US and Sino are on track for this month and what immediate Brexit developments will unfold for the rest of this week.