The US dollar fell Tuesday amid uncertainty over Trump's tariffs policy, but remained near two-year highs ahead of the release of the first of the week's key inflation data.
At 04:15 ET (09:15 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.4% lower to 109.325, after climbing to a 26-month high on Monday.
The dollar slipped from its highs Tuesday following a Bloomberg report that suggested the Trump administration could take a gradual approach to tariffs.
The Federal Reserve cut the number of rate cuts projected for 2025 to two at its December meeting, from four in September, with policy members fretting about inflation remaining above target.
The focus this week is now on the US consumer inflation report due on Wednesday, preceded by producer prices later this session.
In Europe, GBP/USD traded 0.1% higher to 1.2214, after falling to 1.21 on Monday, its lowest since November 2023.
The pound has struggled this year as surging gilt yields, and thus higher borrowing costs, have prompted fears that the new Labour government may be forced to rein in spending or raise taxes to meet its fiscal rules, potentially weighing on future growth.
There is an abundance of UK economic data to study this week, starting on Wednesday with the latest consumer prices.
EUR/USD rose 0.1% to 1.0255, just above hovered near the more than two-year low of 1.0177 seen on Monday.
The single currency has struggled at the start of the year after dropping more than 6% in 2024 as investors fret about the weak economic growth in the region and tariff threats.
There is sentiment data due later in the session from both Germany and the eurozone to digest.
The European Central Bank widely expected to ease interest rates by around 100 basis points in 2025, with most of the cuts coming in the first half of the year.
Source: Investing.com
The Japanese yen weakened to near 158.5 per dollar on Thursday, amid market concerns over the worsening fiscal outlook. The Bank of Japan (BOJ) began a two-day policy meeting, and traders remained war...
The USD/JPY pair weakened in Asian trading on Monday, hovering around 156.20 and briefly approaching 156.00. This weakening occurred after the Japanese Yen (JPY) strengthened, following signals from t...
The Japanese yen is the worst-performing major currency against the US dollar throughout 2025, despite the Bank of Japan (BOJ) raising interest rates. Even with further tightening measures, the yen co...
The Japanese yen weakened slightly during the Asian session on Wednesday, as investors remained cautious while awaiting the Bank of Japan (BoJ) policy update. Market focus now turns to the two-day BoJ...
The USD/JPY pair weakened to around 155.10 at the start of the Asian session on Tuesday. The yen strengthened slowly as markets became increasingly confident that the Bank of Japan (BoJ) would raise i...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...