EUR/USD corrected near 1.0450 in the European session on Monday (1/27) after hitting a six-week high near 1.0520 on Friday. The major currency pair faced pressure as the US Dollar (USD) started the week on a positive note amid risk-averse market sentiment. The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, attempted to recover from last week's losses and surged near 107.75.
The US Dollar's safe-haven appeal has been boosted as US President Donald Trump's tariff concerns have returned. Trump imposed a 25% tariff on South American trading partner Columbia overnight after the country refused to accept military flights carrying deportees from the US. However, the White House later reported that the Colombian government agreed to "Trump's terms for accepting illegal immigrants", and Trump's proposed tariffs are "now on hold", the Associated Press (AP) reported.
The greenback also drew bids on Monday as market sentiment was cautious, with investors awaiting interest rate decisions from the Federal Reserve (Fed) and the European Central Bank (ECB) on Wednesday and Thursday, respectively.
According to the CME FedWatch tool, the Fed is set to keep interest rates unchanged in a range of 4.25%-4.50%. Investors will be watching Fed Chair Jerome Powell's press conference to determine whether policymakers are comfortable with Trump's call for an immediate rate cut.
On the US economic front, investors will focus this week on the Durable Goods Orders and Personal Consumer Expenditure (PCE) Price Index data for December and the preliminary Q4 Gross Domestic Product (GDP) data. (AL)
Source: FXstreet
The US dollar weakened at the start of the week after tensions between the United States and the European Union escalated over the Greenland issue. Markets assessed that the political conflict, which ...
EUR/USD loses ground for the sixth consecutive day on Wednesday, trading below 1.1730 after peaking above 1.1800 last week. The pair struggles amid a moderate US Dollar (USD) rebound following the rel...
The EUR/USD pair moved steadily around 1.1750 during Wednesday's Asian session. Its movement appeared to be holding up after a sharp drop the previous day from its highest level since September 24th. ...
The euro rebounded above $1.16, reaching its strongest level since mid-November, as investors adopted a cautious stance ahead of key Eurozone and US economic data that could influence interest rate ex...
The EUR/USD pair traded flat on Thursday, trading around 1.1596, as market liquidity thinned during the US Thanksgiving holiday. Despite the limited movement, pressure on the US dollar remained as exp...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...