Investing.com – The dollar was higher in early trading in Europe on Wednesday, backed by comments from senior Federal Reserve officials who cut the likelihood of interest rate cuts, and by a new fight in the safe haven buys geopolitical tensions.
At 03:00 ET (0700 GMT), which measures the greenback against a basket of six major currencies, was 97.36, up almost half from Monday's downs and up 0.1% from Tuesday's end.
The dollar was strongest against and after data published in China appeared and failed expectations in April ̵
picked up Chinese stocks on Wednesday, apparently in anticipation
President Donald Trump on Tuesday urged the Federal Reserve to "match" any stimulus from China to offset the financial damage from its new tariffs.
Kansas City Fed President warned in a speech that "Lower interest rates could burn real estate price bubbles, create economic imbalances and ultimately a recession" and put responsibility for any risk to the US economy on "trade policy uncertainty and slower growth abroad, especially in China , the euro area and the UK. "
In a separate look, the New York Fed President warned that tariffs would tend to push up inflation.
"As tariffs grow, assuming that happens, Effects will be bigger, increase inflation next year and likely to have negative effects on growth, Williams says to Bloomberg.
The euro pushed for the news that it increased by 0.4 % in the first quarter, a figure that has already been overshadowed by weak business surveys in April and May. A second reading is due later on Wednesday.
It has lost ground after yesterday's data, showing that average earnings growth slowed somewhat in March. It is also still under pressure after Labor Party Deputy John McDonnell warns that cross-party agreement on a Brexit approval agreement is near collapse. The Prime Minister indicated on Tuesday that she is aiming for a fourth parliamentary vote on her withdrawal agreement once in June.
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