By: xemarketanalysis
OVERVIEW
A cautious tone came down upon the financial markets today as China responded to the US with trade tariffs on US goods.
The construction sector in the UK literally froze in March as the beast from the East put this sector into contractionary territory in March.
Inflation in Europe ticked higher, while the unemployment rate dropped.
US service sector activity slows albeit from buoyant levels.
HIGHLIGHT
China struck back in the looming trade war with the US by imposing a 25% tariff on 106 US goods, with soybeans being the focus.
US DOLLAR
The Dollar continues to trade in a quiet range against the Euro as the service sector PMI reading came in weaker than expected at 58.8 from 59.5 previously.
BRITISH POUND
The Pound continues to prove resilient as the market shrugged off the weaker than expected construction data in the expectation that activity will bounce back again in April.
EURO
Unemployment in the EU dropped to 8.5% while the inflation rate rose from 1.1% to 1.4%.
CANADIAN DOLLAR
The Canadian Dollar is weaker against its US counterpart, pulling back from an earlier five-week high amid rising trade tensions.
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