Dollar falls as Trump accuses ‘China, European Union of currency manipulation

The US launches a trade war against China

European auto shares, sensitive to trade tensions as USA officials work toward slapping tariffs on vehicle imports, fell 2.1 percent.

The dollar had reached that high after Federal Reserve Chairman Jerome Powell expressed confidence in the US economy and affirmed expectations that the central bank was on track to keep hiking interest rates gradually.

The China Global Television Network has released a video to address the tariffs imposed on American soybean exports. Earlier this year, he used national security as a justification for taxing imported steel and aluminum.

Europe's STOXX 600 fell 0.3 percent as investors braced for a packed week of corporate earnings in Europe and a meeting between European Commissioner Jean-Claude Juncker and Trump to discuss threatened auto tariffs which could damage carmakers.

It is not the first time soybeans have had a starring role in Beijing's trade showdown with Washington. Yao Dandan said his company has sold around 50,000 "Trump flags" in 2018 and consistently receives orders.

"The US is likely to continue to take measures against its trading partners until the equity markets respond or there is a dip in the president's approval rating", say Aditya Bhave, Ethan Harris and Helen Qiao, economists at BAML.

The biggest fallers today have been the automakers with Volkswagen and BMW sharply lower, but the losses have also pulled in BASF, Siemens as well as Deutsche Bank, while on the FTSE100 the worst fallers have been in basic resources and industrials with CRH, Melrose and BHP Billiton all near the bottom of the index. -Chinese tariff fight that prompted suggestions Beijing might weaken the yuan to help exporters. It expects that 700,000 jobs would be lost.

But trade tensions are escalating anyway.

China's government put out a video featuring a soybean, seemingly pushing against Trump's trade policies.

He and Utah Republican Gov. Gary Herbert extolled long-term strategies for state economies to increase foreign trade, from foreign language schools to Utah's expansion of airport cargo-flight capacity.

But many analysts are skeptical that President Trump's tactics will produce such an outcome.

And while the currency has been weakening in recent weeks, Mr Nordvig said Thursday's sharp adjustment appeared to be a deliberate move.

China has pledged to retaliate against USA tariffs in "equal scale and equal strength".

To some extent that policy lost a lot of its credibility in the reaction to the financial crisis, post 2008, and while USA officials have never explicitly acknowledged a desire so openly for a weaker United States dollar in the past they have also never really complained about a strong currency until recently.

"Lastly, a weaker yuan deepens trade war concerns". China also said it would reduce its auto tariffs from 25 percent to 15 percent.

Yet President Trump soon intensified his tariff threats anyway.

The CBN asked banks to bid for renminbi between 9:00 a.m. and midday, two people, who asked not to be identified because they're not authorized to speak to the press about the matter, said.

A top Federal Reserve official, meanwhile, warned the trade war could hurt the us economy. Yet any such agreement would require extensive talks over how it would be implemented and verified. "I don't like all of this work that we're putting into the economy and then I see rates going up".

In the CNBC interview broadcast Friday, Trump reiterated his claim that the United States is "being taken advantage of" on issues including trade policy.

"They're not doing what we're doing and we already have somewhat of a disadvantage, although I'm turning that into an advantage", he said. He has been denouncing other countries' trade practices and urging retaliation for decades, dating to the 1980s, when Japan was regarded as America's main global economic threat.

"If there's a toss-up between raising and not raising (rates), you wonder what role these types of comments might possibly play", said Sameer Samana, a strategist for the Wells Fargo Investment Institute.

In his CNBC interview Friday, President Trump shrugged off the prospect that a trade war with China could cause the stock market to tumble.

"If it does, it does", he said.

Related news:

Hot News

isis-killer-beheading-video-story-top India scraps tax on sanitary pads in boost for girls' education
Jul 23, 2018 - 10:52
This quarterly filing provision would exclude small traders making only a B2C supply, and those making a "B2B + B2C" supply. Sources, however, said the tax rate reduction is likely to cost around Rs 8,000-10,000 crore annually to the exchequer.

isis-killer-beheading-video-story-top Fortnite birthday celebration kicks off next week with free cosmetics, more
Jul 23, 2018 - 08:48
The celebration will start on July 24th and will have tasks for players to complete, both in Battle Royale and Save the World . That has been one of the keys to Fortnite's success-it's available on several platforms, including the Nintendo Switch .

isis-killer-beheading-video-story-top President Trump Says He Holds Putin 'Responsible' for Election Meddling
Jul 21, 2018 - 12:46
And that's the way it's going to be", Trump was quoted by CNN saying. "I will say this I don't see any reason why it would be". On Monday, attention was drawn to Helsinki where the United States and Russian leaders held a historic summit.

isis-killer-beheading-video-story-top Sony's Spider-Man PS4 is Very Nice
Jul 21, 2018 - 12:27
Mary Jane and Miles will no doubt become invaluable to Spider-Man's efforts in saving the city during the course of the game. Today, Sony unveils a new limited edition console that puts the aforementioned "Days of Play" variant to shame.

isis-killer-beheading-video-story-top Microsoft's earnings beat expectations as cloud business booms
Jul 21, 2018 - 11:45
For the fourth quarter that ended on June 30, the tech giant reported revenue of $30.1 billion and net income of $8.9 billion. The revenue grew 8% (up 6% in CC) and the total Office 365 consumer subscribers have reached 31.4 million.

isis-killer-beheading-video-story-top Fabregas adds fuel to Conte sack reports
Jul 21, 2018 - 10:53
Sarri's first game at the helm is scheduled to be the July 23 friendly against Perth Glory in Western Australia. During Antonio's time at the club, we won our sixth league title and eighth FA Cup.

isis-killer-beheading-video-story-top Trump calls European Union a 'foe'
Jul 21, 2018 - 10:45
Trump is also under pressure from Britain to press Putin over the nerve agent poisoning of four people in the city of Salisbury. In response, he has blamed President Obama for allowing Putin to annex Crimea from Ukraine during his administration in 2014.

isis-killer-beheading-video-story-top After passing Nation-State law, Israel officially adopts apartheid system
Jul 21, 2018 - 10:01
The nation state law has divided the Jewish people; with resistance in the diaspora even greater than in Israel itself. The Association for Civil Rights (ACRI) in Israel, along with numerous other NGOs, criticized the law as well.

isis-killer-beheading-video-story-top White House struggles to contain fallout from Trump-Putin summit
Jul 19, 2018 - 06:28
The House was working on spending and other bills, while the Senate continued to process Trump's nominees. Trump's comments at the joint press conference of being "nothing short of treasonous".

isis-killer-beheading-video-story-top Raptors to acquire Leonard and Green for DeRozan, Poeltl, and a 1st
Jul 19, 2018 - 05:58
The report indicates that the Blazers' trade package did not include either of their star guards, Damian Lillard or CJ McCollum. When healthy, Leonard is a better player than DeRozan, a generational two-way talent rather than just a very good wing.

isis-killer-beheading-video-story-top Shock, alarm as Trump backs Putin on election meddling at summit ZlotoNews
Jul 19, 2018 - 05:24
Having denied Russian interference in the election and the possibility that the Russian government may have blackmail on Mr. Bob Corker of Tennessee, who said of Trump's news conference: "I did not think this was a good moment for our country".

isis-killer-beheading-video-story-top Hawaii: Flying lava shoots through roof of tour boat, injures 23
Jul 19, 2018 - 04:45
But from where lava from the Kilauea volcano is hitting the ocean to the harbour is about an hour's boat ride, depending on waves. Molten rock has been erupting from Kilauea on the big island of Hawaii since early May and has destroyed more than 700 homes .

isis-killer-beheading-video-story-top Sharma sees England ODI series as `crucial´ pointer to…
Jul 18, 2018 - 10:55
The hosts though found a way to tackle the wrist-spin threat and come up with clinical performances in Lord's and Leeds . Recently, the Indian cricket team is on their United Kingdom tour and playing the ODI series against England .

isis-killer-beheading-video-story-top Cher and Meryl Streep stun at Mammia Mia premiere — Blue carpet glamour
Jul 18, 2018 - 10:22
Underneath the jacket, Cher layered a gold netted top over a white cami, and added a long sparkly gold tasselled neck-tie. " Mamma Mia! Here We Go Again " marks Cher's return to the silver screen after seven years.

isis-killer-beheading-video-story-top Trump sheds light on his crucial error at Putin summit
Jul 18, 2018 - 10:02
McConnell's words came just minutes before President Donald Trump was expected to speak about the Helsinki summit on Monday. The arguments feed the Kremlin narrative that democracy is risky unless it is carefully "managed".