President Donald Trump

The Euro pared gains a touch Friday after official data revealed a surprise fall in both measures of Eurozone inflation for August, denting the single currency's lead over rivals on a morning when markets are also wrestling with President Donald Trump's latest attack on the single currency and European Union.

The Dollar stabilised close to an August low on Friday as traders await further clarity on reports President Donald Trump is eager to push ahead with higher tariffs on Chinese exports as soon as next week, and that it is gearing up for another showdown with the EU, which has put the so called "trade war" back on top of the agenda for markets.

The US Dollar rose broadly Thursday as markets responded to a decision by President Donald Trump to up the ante in the so called trade war with an increase in tariffs the White House intends to levy on close to half China's exports to the US, opening the door to a possible retaliation and fresh unease for financial markets. 

The US Dollar could be set to rally against "risk" currencies in the coming weeks, according to Morgan Stanley, as markets respond to a decline in global risk appetite and a rise in short term market interest rates. 

The US Dollar fell broadly against many of its major rivals during early trading Friday as markets responded to mounting fears of a possible trade war between the United States and China. 

Democrat victory in Alabama erodes Republican majority at a time when not all senators are on-board with the tax-plan. Strategists eye 1.40 for Pound-to-Dollar in coming months.