Forex Today: Trump's tariffs weigh on USD before meeting Boris, AUD surges, EUR rising

Global markets are concerned by President Donald Trump's intention to slap tariffs on French products, worth $2.4 billion, in response to France's digital tax. Other European may also be targeted. Earlier, the president tweeted his intention to slap duties on Brazil and Argentina, which are selling soya beans to China.

US-Sino relations: Beijing is contemplating preparing a list of "unreliable entities" that would suffer sanctions. That comes in response to American sanctions on human rights abuses in Xinjiang. White House adviser Kellyanne Conway said that the agreement with China is being written, but Commerce Secretary Wilbur Ross threatened to slap new levies on China if no deal is reached. 

The US dollar is consolidating its losses, caused mostly by ISM's weak Purchasing Managers' Index figures for the manufacturing sector. The score of 48.1 reflects ongoing contraction and triggered fears about the global economy. 

AUD/USD has extended its gains after the Reserve Bank of Australia painted a more optimistic picture of the global economy and seems hesitant regarding cutting interest rates. 

EUR/USD is holding onto its advance on Monday. Christine Lagarde, the new President of the European Central Bank, said that the bank's review of its monetary policy will include considering the climate, and will also view inflation as symmetrical. The euro was supported as she did not offer dovish views. Several ECB members will speak later today.

GBP/USD has been a relative laggard, as the election campaign rages on. Labour has narrowed the gap with the Conservatives, but Prime Minister Boris Johnson's party is still on course to a victory. Trump's visit to the UK for the NATO summit is at the center of the agenda. 

Cryptocurrencies have stabilized with Bitcoin trading around $7,300. 

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