· The dollar dropped to a two-week low on Monday, as easing political tensions in Italy lifted the euro and global trade concerns resurfaced after China warned the United States against tariffs and other protectionist measures.
In late trading, the dollar index fell 0.2 percent to 94.046, hitting a two-week trough of 93.664.
· The official Chinese news agency Xinhua reported on Sunday that if the United States introduces trade sanctions including raising tariffs, all the economic and trade achievements negotiated by the two parties a few weeks ago will be void.
· The euro, meanwhile, clawed back some gains as Italy took steps to form a new government and as German Chancellor Angela Merkel said over the weekend that Germany favoured moves toward a European Monetary Fund.
In late trading, the euro was up 0.3 percent at $1.1694, after rising as high as $1.1737, its highest level since May 24, pulling further away from 2018 lows of $1.151last week.
· At the same time, U.S. Treasury yields rose, with the 10-year yield hitting one-week highs, as investors pared safe-haven holdings of lower-risk government debt amid reduced anxiety about the political turmoil in Italy and Spain.
Benchmark 10-year notes last fell 14/32 in price to yield 2.9442 percent compared with 2.895 percent late on Friday.
· Canada’s government vowed on Monday to do all it could to protect its steel and aluminum sectors from U.S. tariffs but sidestepped an industry call to strike back quickly, saying it needed time to study the issue.
· Mexico will start a dispute settlement process at the World Trade Organization over U.S. tariffs on steel and aluminum, its economy ministry said on Monday, joining the European Union in seeking WTO involvement against the new measures.
· The United States will continue to have strong ties with Canada, Mexico and the European Union despite the imposition of steep tariffs on steel and aluminum imports from those nations, the White House said on Monday.
· The White House said on Monday its policy of tough sanctions on North Korea has not changed, days after U.S. President Donald Trump said he no longer wanted to use the phrase “maximum pressure” to describe the campaign to press North Korea to give up its nuclear weapons.
After meeting a senior official from Pyongyang at the White House on Friday, Trump said North Korea was being more cooperative and that although sanctions would remain in place, he would hold off on imposing new ones.
Trump said he didn’t want to use the term “maximum pressure” any more, because the two sides were “getting along.”
· North Korea’s new top three military officers are known for their unquestioning support of leader Kim Jong Un and are flexible enough to accept the massive changes that may come from any deal with U.S. President Donald Trump, people who follow the secretive country say.
· A senior U.S. tax policy aide is resigning from the Trump administration to become a bank lobbyist, the White House confirmed late on Monday, less than six months after Republicans approved deep tax cuts for businesses.
Shahira Knight will become executive vice president of the Clearing House Association as it merges with the Financial Services Roundtable. The combined group will advocate for the interests of large banks, it said in a statement.
· Oil prices fell about 2 percent on Monday, with U.S. crude touching its lowest level in nearly two months, breaking below technical support levels as investors kept selling amid growing U.S. production, possible global supply growth and nagging trade tensions.
Brent crude futures LCOc1 lost $1.50 a barrel, or 2 percent, to settle at $75.29 a barrel. U.S. crude CLc1 ended $1.06, or 1.6 percent, lower at $64.75 a barrel, after earlier touching $64.57, its lowest since April 10.
Reference: Reuters
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