Surprise, Trump didn’t throw a punch to China in the first few minutes of his presidency and the WSJ reported that he would study the trade policies and the relationships with China, Canada and Mexico instead. The latter gave hope that Trump’s trade policies wouldn’t be as aggressive as he promised. The US dollar initially fell.
BUT WAIT... the dollar jumped again, erasing losses versus most major currencies as Donald Trump later said that Canada and Mexico could be subject to 25% tariffs from February 1st. Any remarks could hit China anytime, as well.
This morning, we are back to the inflation worries on tariff threats that pushes the US dollar higher against many majors. No one knows what’s next but the positive pressure on the dollar against most majors – except the yen – should continue on the back of fears that Trump tariffs would boost inflation in the US and keep the Fed hawks close to the market. In earnings,
Netflix is due to announce its Q4 results today after the bell.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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