Investing.com – The u.s. dollar was trading broadly lower on Friday morning in Europe, while it expects more and more that the Federal Reserve will reduce its interest rates to support the u.s. economy and offset the damage of a trade war is growing with China.
Manufacturing activity in the United States has slowed to its lowest point in five years in may, while sales of new homes fell 6.9% in April, which is worrying at the beginning of the sales season of spring. The data were collected from surveys of business also low conducted in Japan and Europe and a warning from the International Monetary Fund on the dangers of trade war is growing between the two largest economies in the world.
“The markets expect a rate cut, damage caused by the voltage of the commercial are supposed to be more important than expected, although the Fed has not spoken at all,” said to Reuters, Yukio Ishizuki, head of the monetary policy strategy at Daiwa Securities.
The yuan has been stable, which helped dispel fears for the time being, that China and let drop in order to absorb some of the shock caused to the economy by the customs duties of import higher and wider in the United States.
The tone of the president, has improved slightly following the president’s remarks Trump on the telecom giant Huawei, claiming that it was “possible that Huawei will be included in the framework of a commercial agreement”, although it is “very dangerous, from the point of view of security”.
At 09.35 am, the euro and the british pound rebounded against the dollar, leaving the single currency on track to close the week with a gain of almost 0.5% against him. The pound sterling remains, however, subject to a weekly loss due to the rise of the political volatility in the United Kingdom.
The First minister Theresa May is expected to announce the date of his resignation later Friday, after a meeting with the deputies of his party. According to the indications, it will remain in position long enough to welcome the president, Donald Trump, who must travel to the Uk between 3 and 5 June.
The dollar index, which measures the greenback against a basket of six major currencies, was $ 97,627, after having exceeded 98 on Thursday.