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US Dollar Weakens At Start Of Central Bank Week
Monday, 27 January 2025 20:08 WIB | US DOLLAR |DOLLAR

The US Dollar Index (DXY), which tracks the performance of the US Dollar against a basket of six major currencies, weakened slightly and traded around 107.30 at the time of writing on Monday (27/1) despite some safe-haven inflows earlier during the Asian session. Markets were spooked after US President Donald Trump threatened to impose 50% tariffs on Colombian imports after the country refused to accept immigrants deported from the US over the weekend. Traders are now reassessing their earlier dovish stance on tariffs as it seems clear that tariffs will be used more as a leverage tool.

On the economic data front, all eyes are on the US Federal Reserve (Fed) and the European Central Bank (ECB), which will announce their first monetary policy decisions of the year on Wednesday and Thursday respectively. While the ECB is set to deliver a 25 basis point (bps) interest rate cut, the Fed is expected to keep borrowing costs unchanged. For Monday, the Chicago Fed National Activity Index for December is the key data point in focus. (AL)

Source: FXstreet

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