The US dollar clearly showed a continued depreciation in value in trading yesterday Tuesday as concerns about the US economic recession are escalating.
As a safe-haven currency, the US dollar is not attractive even in a risky environment driven by the tariff war issue, instead investors are projecting that the world's largest economy will collapse due to the impact of tariff retaliation from the countries involved.
In addition, economic data indicators also support these concerns with the gloomy NFP employment report for February.
In the New York session yesterday, the JOLTS report showed that the number of job openings in the United States was 7.74 million in January.
Slightly reducing the gloom of the previous NFP, the figure exceeded the forecast of 7.65 million and also surpassed the December reading which was revised down to 7.51 million.
Investors are now focusing on the US consumer price index (CPI) data to be published in the New York session tonight (Wednesday) as the latest indicator and then producer inflation (PPI) on Thursday.
Also of interest is the outcome of the Bank of Canada (BOC) policy meeting tonight, with a 25 basis point cut expected.
In a further escalation of the tariff war, Ontario Premier Doug Ford has imposed a 25% tariff on US electricity.
President Donald Trump has responded by doubling the tariff to 50% on all steel and aluminium imports to Canada, effective today, March 12.
In a further escalation, Canada has publicly warned that it could cut off US electricity supplies.
Trump has hit back, saying that Canada will pay a 'heavy' price for the threat.
Trump has previously said that the only way for Canada to be completely free of tariffs is to become the 51st state in the US.
In other news, the Euro rose in yesterday's trading after Ukraine accepted a US proposal for a 30-day ceasefire with Russia, but there has been no response from Vladimir Putin.
