The dollar hits its highest level since August amid increasing trading tension

The US dollar has risen against most major currencies after new trading tensions with China caused unrest in high-risk assets, which forced investors to safe ports. The Bloomberg Dollar Spot Index has risen 0.3% to its highest level since August 1, supported by an increase in government bonds amid a decline in stocks. The Australian dollar resulted in the wave of currency losses and fell by 1% to record its lowest level in about two months, while the British pound dropped to the lowest level in two months after the release of the Labor Market data in the UK. Analysts Chris Turner and Francesco Pesoli wrote that the US dollar’s “recovery” of its secure Haven status, as well as “additional upward momentum”, could continue the US currency in the short term. The dollar continues to rise as markets ignore Trump’s threats. Options markets show an increase in demand for long positions for the dollar, especially against the British pound, the Australian dollar and the Canadian dollar. On the other hand, traders take opposite positions against the Japanese yen, which is the performance of the G10 currencies on Tuesday at the top of the G10 currencies. Japanese yen “The yen, which trades at an undervalued value, will be in an ideal position to discuss profits if markets find reasons to alleviate their concerns about the political situation in Japan,” Turner and Pisoli said. At the same time, traders are awaiting the chairman of the Federal Reserve, Jerome Powell’s extremely expected speech scheduled on Tuesday night, in search of indications or the recent assessments of the market over the prospects of the central bank became more pessimistic.