Risk aversion returned to the currency markets following the US announcement of the list of 1,300 Chinese products to include in the new tariffs, then China responded by threatening to impose new tariffs up to 25% on US imports, especially American soybeans, which China exports One-third of US production.
China targets tariffs to be imposed on US imports of up to $ 50 billion a year. So, the markets turned to safe havens, especially the Japanese Yen, as the USDJPY dropped to 105.97, its lowest level since the beginning of today's trading as it begins at 106.67.
The euro rose against the dollar today to reach a daily high of 1.2314 in the wake of positive inflation data, which showed the CPI rose by 1.4% in March after slowing over the past three months.
Sterling continues to rise for a fourth straight day despite negative data from the UK construction sector as markets focus on expectations that the Bank of England would raise rates at next month's meeting. The GBPUSD currently trades at 1.4078 levels.
