© Reuters. The euro is pulling back on trade tensions and uncertainty in the German
Investing.com – The euro declined on Monday on tensions related to the prospects of a trade war world and the political uncertainty in Germany, while the dollar cut its gains against the yen.
The EUR / USD lost 0.47 per cent to 1,1628 to 03h56 (07h56 GMT).
The euro is under pressure after the ministry of Interior of Germany has resigned due to an escalation of immigration policy, fuelling doubts on the coalition government of the future chancellor Angela Merkel.
The euro had risen on Friday after the leaders of the european Union have concluded an agreement on migration, easing the pressure on Merkel.
The president of the United States, has fueled trade tensions with the EU, saying that he was very badly treated and “can be as bad as China”.
These comments have nurtured the perspective that the United States could impose additional tariffs on imports from the EU, possibly on imports of automobiles.
The United States has threatened to pay $ 300 billion of u.s. products if the United States was not a victim of not the european car manufacturers.
The euro declined against the yen and the swiss franc, with EUR / JPY down 0.48% to 128,77 and while the EUR / CHF is losing 0.33% to 1,1540.
The index dollar, which measures the greenback’s strength against a basket of six major currencies, rose 0.39% to 94,60, stimulated by the weakness of the euro.
The dollar has reduced its gains against the yen last week to 110,74, after a summit of 111,06.
The demand for the dollar continued to be supported by the relative strength of the u.s. economy and the prospects of rate hikes by the Federal Reserve this year.
The pound was lower, with GBP / USD down 0.42% to 1,3155.
The australian dollar and new zealand sensitive to trade have fallen, with a low of 0.54% to 0,7368, approaching the lowest 0,7322 a year and a half, reached last Wednesday.
The NZD / USD declined 0.28% to its lowest level in a year (0,6749).