Mubasher: The US dollar remained steady on Thursday as gains in its European peers offset the greenback’s broad rally on growing worries that US President Donald Trump would levy tariffs on Chinese imports.

Trump would impose tariffs on further $200 billion in Chinese goods as soon as the period for public commentary on the measures ends.

That would probably boost the US dollar, with investor appetite is moving for the greenback which became a reserve for value, in a bid to avoid a looming trade dispute between Washington and Beijing.

However, the US currency’s gains were capped at 8:00 am GMT, with the greenback index remaining flat at 95.110, because of a bounce in the UK pound (GBP) and the euro (EUR).

By 10:59 am GMT, the index inched down 0.07% to 95.1130.

This came after Bloomberg News reported on Wednesday that Germany would accept a less detailed deal on the UK’s future relations with the European Union (EU) in an attempt to finalise a Brexit deal.

The pound lost some of its gains after Germany stated that it had not changed its stance on the UK's departure from the EU and earlier on Thursday it inched up 0.1% to $1.2923.

By 11:14 am GMT, the GBP/USD pair went up 0.15% to $1.29525, while the EUR/USD pair inched down 0.3% to $1.11627.

“The dollar continues to face residual pressure from the buoyant pound amid the latest speculation over Brexit,” Gaitame.com Research’s general manager Takuya Kanda told Thomson Reuters.

“How long this lift could last remains to be seen, but it is prompting buy backs of other European currencies like the euro and Swiss franc for now,” Kanda said.

The Swiss franc (CHF) went down 0.23% against the US dollar to CHF 0.9695 by 11:23 am GMT.

This came ahead of the Automatic Data Processing’s release (ADP) pertaining to employment in the US and the Institute for Supply Management (ISM) data on the service sector due later in the day.