Daily Afternoon Report 22.06.2018

The euro remained higher on Friday, as the U.S. dollar fell and trade concerns lingered.

EURUSD rose 0.26% to 1.1633 after French and German business activity in June came in higher than expected, easing concerns of a slowdown in the eurozone.

The pound was also higher, with GBPUSD rising 0.20% to 1.3268.

Trade tensions between the U.S. and its allies continued, as the European Union imposed tariffs on about $3.4 billion of U.S. imports on Friday, including motorcycles, jeans, and whiskey in retaliation for U.S. President Donald Trump’s steel and aluminum tariffs.

The greenback was also held back by a decline in the Philadelphia Federal Reserve’s manufacturing index on Thursday. The index fell to a one-and-a-half-year low, increasing concern about the strength of the U.S. economy.

The dollar was lower against the safe-haven yen, with USDJPY decreasing 0.07% to 109.91. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

Meanwhile, the Australian dollar was higher, with AUDUSD up 0.65% at 0.7425, while NZDUSD rose 0.39% to 0.6894.

The loonie was lower against the greenback, with USDCAD up 0.14% to 1.3333.