Trump Speaks, Dollar Poised to Swing
The US dollar moved relatively stable against major currencies on Wednesday, as market participants awaited new signals from President Donald Trump's State of the Union address. The Bloomberg Dollar Spot Index fell around 0.1%, erasing some of the previous session's small gains, while the 2-year US Treasury yield remained virtually unchanged at around 3.46%.
Markets viewed Trump's speech as important not only from a domestic political perspective, but also as a clue to policy direction that could potentially trigger global volatility. Investors were particularly attentive to comments regarding tariff policies and developments in Iran, as both themes are considered capable of rapidly shifting risk appetite and capital flows in the currency market.
In the G-10 market, the Australian dollar (AUD) was one of the main movers after January inflation data exceeded estimates. AUD/USD rose around 0.3% to 0.7081, supported by expectations that stronger price pressures could keep Australia's monetary policy tighter than previously projected. Some market participants also believe that US-Iran geopolitical risks are likely to disappoint investors, making the AUD more attractive to buy on weakness.
Meanwhile, other currencies tended to show limited movement: NZD/USD rose slightly to 0.5973, USD/JPY fell to 155.64, EUR/USD strengthened slightly to 1.1785, and GBP/USD rose to 1.3510. Overall, the forex market is in a "wait-and-see" mode, awaiting confirmation of US policy direction and geopolitical developments that could trigger further volatility. (asd)
Source: Newsmaker.id
