US dollar wavers as Trump threatens metal tariffs

Pound (GBP) lifted by hawkish BoE remarks

The pound (GBP) edged higher at the end of last week after Bank of England (BoE) Chief Economist Huw Pill struck a hawkish tone in his latest comments.

Pill’s suggestion that the BoE isn’t ready to declare ‘job done’ on inflation dampened expectations for further rate cuts, helping to support sterling following Thursday’s dovish policy decision.

With no major UK data releases today, the pound may struggle to find clear direction.

Euro (EUR) pressured by weak German data

The euro (EUR) came under pressure on Friday as disappointing German industrial production figures weighed on sentiment.

A sharper-than-forecast decline in industrial output in December raised fresh concerns about the health of the Eurozone’s largest economy.

With a lack of notable Eurozone data on the calendar today, the euro’s movement may be limited.

US dollar (USD) slips as payroll data underwhelms

The US dollar (USD) faced headwinds on Friday after the latest US employment report offered mixed signals. While job creation slowed more than expected, the unemployment rate still ticked lower.

This uncertainty dampened USD demand as investors speculated on how it might influence the Federal Reserve’s next policy steps.

Looking ahead, the US dollar may find fresh support today if President Donald Trump’s latest tariff proposals fuel volatility in currency markets.

Canadian dollar (CAD) gains as jobless rate unexpectedly falls

The Canadian dollar (CAD) strengthened at the end of last week, buoyed by an unexpected drop in domestic unemployment, which tempered bets on Bank of Canada (BoC) rate cuts.

With no major Canadian data due today, the ‘loonie’ is likely to take its cues from oil price movements.

Australian dollar (AUD) recovers on tariff relief hopes

The Australian dollar (AUD) initially stumbled on news of Trump’s threat to impose tariffs on steel and aluminium imports but rebounded overnight on hopes that Australia might secure an exemption again.

New Zealand dollar (NZD) unsettled by trade uncertainty

The New Zealand dollar (NZD) wavered overnight as markets reacted to heightened uncertainty surrounding Trump’s latest tariff rhetoric.


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Matthew Andrews

Contact Matthew Andrews


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