He global dollar recovered ground against the main currencies this Wednesday, after hitting two-week lows, amid the lack of clarity about the US president’s plans, donald trumpon tariffs, which kept financial markets in uncertainty.
Trump said Tuesday night that his administration was discussing the possibility of imposing a 10% tariff on goods imported from China on February 1, the same day he previously said that Mexico and Canada They could face levies of around 25%. He also promised tariffs on European imports, without providing further details.
Despite those threats, the lack of specific plans from Trump’s first day in office caused the dollar to start the week down 1.2% against a basket of coins important. It stabilized and ended unchanged on Tuesday after a recovery attempt failed, and US officials said any new taxes would be imposed in a measured manner.
He dollar index, which tracks the currency against six major rivals, rose 0.01% to 108.14, after falling early to 107.75, its lowest level since the 6th of this month.
Inflation risks in the United States
Analysts have said that Trump’s policies on immigration, taxes and tariffs will likely boost growth but also be inflationary, but the more cautious tariff approach has fueled some hopes that inflation risks could be more limited.
Traders expect a cut in the interest rate of a quarter point by the Fed for July, while another reduction by the end of the year is considered a coin toss.
Meanwhile, the euro fell 0.08% to $1.0421, as markets are pricing in a roughly 96% chance of a cut of at least 25 basis points by the ECB at its monetary policy meeting next week, according to data of LSEG.
In front of yenthe dollar strengthened 0.66% to 156.50 yen. Markets estimate that there is an 88.3% chance that the Bank of Japan raise interest rates by at least 25 basis points at its meeting on Friday.
In turn, the pound sterling weakened 0.22% to $1.2327. The Office for National Statistics said Britain had a larger-than-expected budget deficit in December, boosted by debt interest costs and a one-off purchase of military housing, underscoring the fiscal pressure on the minister. Finance, Rachel Reeves.
Source: Ambito
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