The dollar opened with a gap higher today but has largely gave back those gains, keeping just marginally higher on the day for the most part. USD/JPY is up 0.4% to 152.00 and USD/CAD up 0.3% to 1.4340 but besides that, the changes among other dollar pairs are minimal currently.
Trump’s tariff threats are once again the main story since the weekend. In case you missed it: ForexLive Asia-Pacific FX news wrap: Trump banging on the tariff drum again
He wants to announce 25% steel and aluminum tariffs as well as reciprocal tariffs in his latest trade escalation. But looking at the calmer reaction in markets, it looks like traders and investors are starting to figure him out. The tariffs are merely a threat and starting point for negotiations.
Step one, go big. Then, make a show of it. Step two, keep threatening to get people to the negotiating table. Then, proceed with that discourse. Finally, get a deal and brag all about it. Winning.
That’s at least what markets will slowly be inclined to thinking. However, you never know what kind of stops and stunts he is going to pull in between that playbook.
As Trump tariffs steal the headlines again, it will be a quieter one in Europe as the barrage of news settles down for now. There’s not much on the agenda in the session ahead to really shake things up either.
The focus this week will be on key US data again, with the US CPI, PPI, and retail sales data all on the agenda.
As such, there won’t be much else to scrutinise in European trading today. The calmer mood is likely to permeate before we get to the next set of Trump headlines later in US trading.
0900 GMT – SNB total sight deposits w.e. 7 February
0930 GMT – Eurozone February Sentix investor sentiment
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
