The US dollar index rose to its highest level in nearly 2-weeks as the US - China trade tensions worsened after US President Trump blacklisted Chinese telecoms company Huawei, the world’s 3rd largest mobile phone manufacturer, prompting a rise in buying of perceived safe haven currencies such as the US dollar and Japanese Yen. The dollar index touched 97.88, the highest since the 3rd of May.
On Wednesday afternoon the euro was helped by rumours Trump may announce a delay on import tariffs on foreign cars, but throughout Thursday it struggled to hold on to these gains as investors remained cautious ahead of the European Parliamentary elections. Anti-establishment comments about the EU from Italian Deputy Prime Minister Matteo Salvini earlier in the week highlight a potential rise in populism across the Eurozone.
EURUSD opened at 1.1208 and initially rose to a 1.1221, but the gains were short lived and with the contrast in investor opinions of the two currencies, the pair dropped to a 10-day low of 1.1164