Dollar Consolidates as Traders Eye US Tariffs
The dollar consolidated with major currencies in a tight range as market remained alert to US President Donald Trump’s tariff plans.
The Bloomberg Dollar Spot Index held little changed after Trump’s interview with Fox News offered no news on his tariff plans. Earlier this week, he threatened to slap levies on China, Canada and Mexico by Feb. 1 and also criticized the European Union for its trade surplus with the US
“President Trump has already pledged to slap tariffs on Canada and Mexico, and is currently considering tariffs on EU and China,” Jeff Ng, head of Asia macro strategy at Sumitomo Mitsui Banking Corp., wrote in a note. “This may cause some reversals to short dollar trends after markets were relieved that Trump did not impose more aggressive policies on his first day of office”.
The Treasury 10-year yield little changed at 4.61%.
USD/JPY steady at 156.51
The Bank of Japan kicked off a two-day policy meeting, where policy makers are expected to decide on an interest-rate hike.
Overnight-indexed swaps suggested it’s certain that the BOJ will raise rates on Friday.
EUR/USD little changed at 1.0407. So was GBP/USD at 1.2313
AUD/USD steady at 0.6271
Source : Bloomberg
