The dollar is losing ground against all of its major rivals Monday afternoon. The lack of U.S. economic data is keeping some investors on the sidelines at the start of the new trading week. Meanwhile, traders are reacting to the news that the U.S. and Mexico have reached an agreement on trade.
President Trump indicated that the U.S.-Mexico trade agreement would replace NAFTA, which he claimed hurt the U.S. “very badly.”
The president suggested he would seek to negotiate a separate trade agreement with Canada and would raise tariffs on imports of Canadian cars if a deal could not be reached.
The dollar has dropped to nearly a 1-month low of $1.1675 against the Euro Monday afternoon, from an early high of $1.1594.
Germany’s business confidence strengthened to a six-month high in August, weathering geopolitical risks and trade tensions.
The business sentiment indicator rose more-than-expected to 103.8 in August from 101.7 in July, survey results from the Mannheim-based Ifo Institute showed Monday. This was the highest score since February and well above the expected score of 101.8.
The buck has fallen to around $1.2890 against the pound sterling this afternoon, from an early high of $1.2828.
The greenback slid to an early low of Y110.935 against the Japanese Yen Monday, but has since bounced back to around Y111.100.