Trumpâs Tariff Threats Weigh on CAD and AUD; Dollar and Yen Gain Ground
| Action Insight Daily Report 11-26-24 |
Trump’s Tariff Threats Weigh on CAD and AUD; Dollar and Yen Gain Ground |
Dollar strengthened broadly in Asian session, especially against commodity currencies, following a bold announcement from President-elect Donald Trump. Trump pledged to impose steep tariffs on Canada, Mexico, and China to pressure them into halting fentanyl trafficking to the US. The announcement came as markets were digesting the positive sentiment surrounding Trump’s Treasury Secretary pick, hedge fund magnate Scott Bessent, whose appointment had propelled DOW to record highs overnight. Analysts viewed Bessent as a stabilizing presence, with some seeing him as someone who could keep Trump “on a tight leash.” However, Trump’s remarks reinforced his intent to lead decisively on trade policies. In the currency markets, Japanese Yen emerged is currently the strongest performer for the day so far, bolstered by the sharp decline in US Treasury yields. Additionally, October’s corporate services inflation in Japan rose to 2.9%, which keeps a December BoJ rate hike alive. Dollar followed as the second strongest currency, with New Zealand Dollar ranking third. Conversely, Canadian Dollar plummeted on Trump’s tariff threats, making it the session’s weakest currency, followed by Australian Dollar and Euro. British Pound and Swiss Franc held steady in middle positions.... |
USD/JPY Daily Outlook Daily Pivots: (S1) 153.58; (P) 154.15; (R1) 154.75; More... Intraday bias in USD/JPY remains neutral as consolidation from 156.74 is still extending. On the downside, break of 153.27 will bring deeper correction to 38.2% retracement of 139.57 to 156.74 at 150.18. Meanwhile, on the upside, firm break of 156.74 will resume the rally from 139.57 towards 161.95 high. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Corporate Service Price Index Y/Y Oct | 2.90% | 2.50% | 2.60% | 2.80% | | 14:00 | USD | S&P/CS Composite-20 HPI Y/Y Sep | 5.10% | 5.20% | | 14:00 | USD | Housing Price Index M/M Sep | 0.30% | 0.30% | | 15:00 | USD | Consumer Confidence Nov | 112 | 108.7 | | 15:00 | USD | New Home Sales Oct | 724K | 738K |
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