The dollar rises after new US tariff threat
The dollar rose against a basket of currencies for nearly three weeks after President Donald Trump threatened 30% tariffs on the EU and Mexico over the weekend.
One assumption investors are making is that other countries are happy to enter the caves towards Trump’s demands and the EU is willing to accept trade deals that prefer the US, Commerzbank’s Thu Lan Nguyen said in a memo.
“If Trump can actually draw important concessions from US trading partners by threatening them with tariffs, this could be considered positive for the dollar.”