The reserve currency recovered from last week’s losses and moved to growth once again. This time the upwards movement is fueled by investors’ appetite for the USD as a safe haven trading instrument, considering the escalation of the trade conflict between the United States and China, and the resulting insecurity on the financial markets.
Last week US President Donald Trump stated that he is willing to impose even further sanctions on Chinese imports, on top of what’s already being taxed, which gave a strong push to the dollar.
Additionally, more trade-related worry is coming from the US’ northern neighbor, Canada, with regard to the North American Free Trade Agreement. Since last week Trump secured a revision of the deal with Mexico and he is looking for a quick approval, Canada has been under pressure to agree to his terms or stay outside of NAFTA.
The dollar index climbed up to 95.22 with the pressure.
