The US President Trump has demanded to impose duties on steel products to Argentina and Brazil. Trump accused these countries of using the undervalued exchange rate of their currencies for unfair competition against manufacturers of similar goods in the United States.
In addition, Trump said that the Fed is obliged to help the US economy and foreign trade by lowering the dollar – through a rate cut and easing monetary policy.
Markets are reacting with a lower dollar.
We are ready to buy the euro at a break of 1.1035. Stop at 1.0985, targets: 1.1100, 1.1180 and beyond.
In case of a full reversal down, we sell from 1.0980.