© Reuters. The yen is progressing after the resignation of Cohn
Investing.com – The yen strengthened on Wednesday and the dollar dropped to two weeks against a basket of currencies, the resignation of economic adviser to the president, Donald Trump fueling fears of a trade war is imminent.
The USD / JPY was down 0.41% to 105,68 at 03:31 AM (08:31 GMT), not far from a low of 105,46.
Mark Cohn has resigned from his position as director of the national economic Council after failing to convince Trump not to impose a general tariff on imports of steel and aluminum in the United States.
Last week, Trump announced his intention to impose customs duties of 25% on steel and 10% aluminum in the framework of a renewed commitment to his trade agenda nationalist.
The resignation of Cohn has fed fears that the administration Trump will be free to pursue a program of protectionism and has increased the chances of a trade war as a whole.
Market players are concerned that the proposed rates do not cause inflation and do not cause retaliation from trading partners with the americans. The main holders of us Treasury bonds, including China and the european Union, could thus reduce their holdings of americans.
The dollar index, which measures the strength of the dollar against a basket of six major currencies, finished in last position at 89,52 after having hit a low of two weeks 89,38 during the night.
The euro remains close to a high of three weeks, with the EUR / USD at 1.2413.
The book has been a little lower, with GBP / USD dipping 0.08% to 1,3874.
The canadian dollar was lower, with USD / CAD rising 0.36% to 1,2922, investors are turning to a decision of the Bank of Canada on interest rates later in the day.
The Bank of Canada has stated that the uncertainty surrounding the future of the free trade Agreement, north american will weigh increasingly on the outlook for the canadian economy.
The central bank should largely leave its benchmark interest rate to 1.25% on Wednesday.