Dollar Struggles as Concerns Grow

The US Dollar Index was higher at 89.751 .DXY, but still remains close to a 2-week trough as investors’ cautious nature prevails. Traders are worried about Donald Trump following through on his tweets yesterday which suggested military action for the recent gassing of citizens in Syria. Those geopolitical concerns did help to shift the concerns of a brewing trade war with China; however, overall, FX traders are worried about the constant escalation of rhetoric between the US President and other world leaders.

As reported at 11:00 am (BST) in Tokyo, the USD/JPY was trading at 106.93 Yen, up 0.13%; the pair earlier hit a trough of 106.701 Yen while the peak is at 106.973 Yen. The GBP/USD was trading at $1.417, down 0.05% and off the session low of $1.4146.

Traders Await ECB Minutes
In the Eurozone, the imminent release of the minutes of the March European Central Bank meeting has some traders sitting on the sidelines. Yesterday’s release of the US Federal Reserve minutes showed a hawkish leaning but that failed to provide the greenback with any solid lift. The EUR/USD is trading at $1.2338, down 0.24%; the pair has ranged from a session trough of $1.23311 to a peak of $1.23798. Earlier today, Eurostat released Industrial Production figures for February which largely disappointed by missing analysts’ forecasts while the previous period’s data was revised downward.