The AUD/USD pair surged near the key 0.6300 level in the European session on Wednesday (February 5). The Australian currency pair strengthened as investors' risk appetite improved amid expectations that the trade war would not be global and would be confined to the United States (US) and China. S&P 500 futures fell slightly during European trading hours but have recovered their losses significantly. The US Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, fell sharply to near 107.50, its lowest level in more than a week. Market participants are...
The pound (GBP) strengthened near 1.2500 against the US dollar in the European session on Wednesday (5/2). The GBP/USD pair strengthened as the US dollar gave up its initial weekly gains due to the loss of risk premium after US President Donald Trump suspended tariffs on Canada and Mexico. Market participants have interpreted this scenario as a negotiating tactic by President Trump to close a better deal with its major trading partners. Trump called for an immediate suspension of the 25% tariff order on his North American counterparts after they agreed to cooperate on criminal law...
The US dollar weakened against most major currencies as traders continued to assess the risk of an imminent trade war. The Bloomberg Dollar Spot Index fell 0.4% to its lowest in more than a week, with the greenback continuing to weaken from its strongest level in more than two years hit on Monday. Traders recalibrated their outlook for the world's reserve currency after US President Donald Trump delayed the imposition of levies on Mexico and Canada. That returned the focus to market fundamentals, with weaker US jobs data on Tuesday leading to increased bets on interest rate cuts. "The...