The market moved gloomy at the opening of the early week yesterday as investors were still cautiously following the developments in the global tariff war.
Tensions between the world's two giant economies continued to rise, with the United States (US) imposing the highest tariff rate of up to 145% while China responded with 125% total tariffs.
China said that this was the last tariff increase and would not tolerate President Donald Trump's intransigence, which it described as a 'joke'.
Last weekend, the Trump administration also announced an exemption for imports of electronic products from China and is now considering separate new tariffs.
The news has provided some relief to technology giants such as Apple and Dell, which rely heavily on component imports from the Great Wall country, in addition to helping restore global stock markets.
The US dollar did not experience further declines early in the week yesterday, but also did not show any clear strengthening for several trading sessions.
After the indications on inflation data were observed last week, US retail sales data will follow this week.
For economic data, the focus today (Tuesday) will be on the UK employment data report and Canadian inflation data.
The Pound has managed to strengthen against the US dollar towards the high level reached in early April.
In addition to the jobs data, the Pound this week will be driven by the latest UK inflation figures to be published on Wednesday in the European session.
Its regional partner, the Euro remains hovering at a 3-year high against the US dollar but did not show good momentum in the New York session yesterday.
Investors are cautiously awaiting the outcome of the European Central Bank (ECB) policy meeting on Thursday with expectations of a 25 basis point interest rate cut to be implemented.
