The data, however, shows that the U.S.-China trade surplus dispute could escalate even further. Trump pledged to impose taxes on $200 billion worth of Chinese imports this week. Beijing stated that it will retaliate as needed.
With neither side backing down, it’s still too early to tell how the dust will settle for profitability.
The Market is Concerned
This trade surplus was the reason for a lot of concerns in the market, said Ester Reichelt, a Commerzbank analyst. He thinks that these moves are sentiment-driven.
The single currency fell to $1.1613, which is down by 0.4 percent. The dollar reached its highest level in two weeks at 95.241.
The Chinese yuan began declining in April with concerns that the U.S. would impose taxes on Chinese imports. It reversed gains it made in trading in Asia and fell 0.5 percent in foreign markets. It fell to as low as 6.7252, which is almost the lowest in six months.
The yuan is currently 112.775. The dollar is up by about 2 percent this week versus the yuan. This is the biggest gain in a week since September.