US dollarThe dollar climbed, and Asian currencies moved sideways on Tuesday morning in Asia after US President Donald Trump announced plans to reinstate steel and aluminium tariffs on Brazil and Argentina.
The announcement followed the release Monday in the US of new data from the Institute of Supply Management (ISM) which noted that manufacturing activity there contracted in November.
The GBP/USD pair was up to 1.2970 as the UK moves closer to an election on December 12. The results of the election could lend some clarity to the future of Brexit. EUR/USD was trading at 1.1082, while USD/JPY pair gained in morning trading and was up 0.07% to 109.04.
The EUR macro calendar this Tuesday is a thin-showing, with the UK Construction PMI and Eurozone Producer Price Index (PPI) to be in traders’ focus. Meanwhile, the UK political drama and trade-related headlines will continue to play out.
The NA session also lacks relevant macro news from both the US. However, ECB Governing Council member Coeure’s speech and weekly US Crude Stocks data from the American Petroleum Institute (API) will be closely eyed.
Oil held its gains on Tuesday as Saudi Arabia is reportedly pushing for extended supply cut plans, even as stocks fell across following the announcement of fresh tariffs by US President Donald Trump.
Gold traded marginally lower on Tuesday morning, hovering around the $1,463 range as the U.S. and China are still in talks for ‘deal or no deal.’