• The dollar held firm against its peers on Thursday, supported by bullish comments from the U.S. Federal Reserve chairman, which affirmed expectations for at least two more interest rate hikes this year.
In closely watched congressional testimony on Tuesday and again on Wednesday, Fed Chairman Jerome Powell said he believed the United States was on course for years more of steady growth, and carefully played down the risks to the U.S. economy of an escalating trade conflict.
The dollar index versus a basket of six major currencies was little changed at 95.021 after hitting a three-week high of 95.407 overnight.
The euro was a shade firmer at $1.1650 after dipping about 0.2 percent on Wednesday, during which it brushed a 16-day low of $1.1602.
Against the Japanese yen, the dollar was down 0.15 percent at 112.685 yen.
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• EUR/USD was unable to breakout above the daily high at 1.1665 and is now back near the 1.1640 support and just below its 100-period simple moving average.
EUR/USD bears want to pull away from the current level to retest the 1.1600 level while bulls want to overcome the current daily high and 1.1672 resistance in order to retest the 1.1700 figure.
The overall bias remains bearish as EUR/USD is trading below its 200-period simple moving average
• Rising trade tensions between the United States and the rest of the world could cost the global economy $430bn (£324bn), with America “especially vulnerable” to an escalating tariff war, the International Monetary Fund has warned.
Delivering a sharp rebuke for Donald Trump, the Washington-based organisation said the current threats made by the US and its trading partners risked lowering global growth by as much as 0.5% by 2020, or about $430bn in lost GDP worldwide.
• U.S. President Donald Trump said on Wednesday the United States may hammer out a trade deal with Mexico, and then do a separate one with Canada later, sowing fresh doubts about the future of the North American Free Trade Agreement (NAFTA).
• A self-styled “Global Business Coalition” of industry groups has urged the Group of 20 leading economies to counter threats to global free trade.
U.S. President Donald Trump is taking a more aggressive, protectionist posture on trade than his recent predecessors that has sparked retaliatory measures from the European Union, Mexico and Canada.
The business coalition urged G20 finance ministers to renew their commitment to free markets at a meeting this weekend in Buenos Aires.
• The European Union will consider introducing tariffs on coal, pharmaceuticals and chemical products from the United States if President Donald Trump imposes restrictions on European cars, Germany’s Wirtschaftswoche magazine reported on Thursday.
• Oil prices dropped on Thursday after official data showed an unexpected rise in U.S. crude stockpiles and as U.S. output scaled record levels.
Brent crude futures had fallen 21 cents, or 0.3 percent, to $72.69 a barrel by 0615 GMT. West Texas Intermediate (WTI) crude futures declined 7 cents, or 0.1 percent, to $68.69.
• Crude oil prices knocked higher on Wednesday as consumption indicators signal that demand for crude is on the rise, and WTI kicked higher to 68.96 despite a continuing buildup in US inventories.
WTI Levels to watch
Oil prices have been in decline from a recent peak at 75.35, bottoming out at 67.25, and the late-day surge on rising crude imports saw WTI barrels take a swipe at the 69.00 level, though continued reports of inventory pileup for the US could easily see crude costs back on the downside, pushing into June's lows near 63.50.
Reference: Reuters, CNBC, FX Street
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