Dollar Slides as Markets Cheer Tariff Delay, Kiwi Surges on Manufacturing Rebound
| Action Insight Daily Report 2-14-25 |
Dollar Slides as Markets Cheer Tariff Delay, Kiwi Surges on Manufacturing Rebound |
Dollar’s selloff is accelerating as the week draws to a close, with investors continuing to react to the evolving trade policy stance from the White House. Wall Street posted broad gains overnight, as markets took relief in the fact that US President Donald Trump’s much-anticipated reciprocal tariff plan did not impose immediate trade restrictions. Instead, the administration will conduct a detailed review of tariff disparities before deciding on specific measures. Despite the optimism in US equities, risk-on sentiment was not fully carried over into Asian session. While Hong Kong stocks extended recent strong gains, other major indexes struggled for direction, reflecting lingering caution. Investors remain wary of how the tariff situation will unfold, particularly as Trump’s trade team begins its assessment of countries with large trade surpluses with the US. This process is expected to take weeks, leaving room for further volatility in global markets. The immediate focus now shifts to US retail sales data for January, which will provide fresh insights into consumer spending. Yet the figures are unlikely to have a significant impact on Fed expectations even with a major surprise. Fed has emphasized that its next move will be dictated by sustained trends rather than single data points. As a result, the Dollar’s downside pressure may persist, with market sentiment favoring risk assets.... |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.4147; (P) 1.4229; (R1) 1.4274; More... USD/CAD's fall from 1.4791 resumed by breaking through 1.4260 cluster support decisively. The development suggests that deeper corrective is underway and turn intraday bias to the downside for 1.3946 cluster support (61.8% retracement at 1.3942). For, risk will stay on the downside as long as 1.4378 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | NZD | Business NZ PMI Jan | 51.4 | 45.9 | 46.2 | | 07:30 | CHF | PPI M/M Jan | 0.10% | 0.00% | | 07:30 | CHF | PPI Y/Y Jan | -0.90% | | 10:00 | EUR | Eurozone Q/Q Q4 P | 0.00% | 0.00% | | 13:30 | CAD | Manufacturing Sales M/M Dec | 0.60% | 0.80% | | 13:30 | CAD | Wholesale Sales M/M Dec | 0.40% | -0.20% | | 13:30 | USD | Retail Sales M/M Jan | -0.20% | 0.40% | | 13:30 | USD | Retail Sales ex Autos M/M Jan | 0.30% | 0.40% | | 13:30 | USD | Import Price Index M/M Jan | 0.50% | 0.10% | | 14:15 | USD | Industrial Production M/M Jan | 0.30% | 0.90% | | 14:15 | USD | Capacity Utilization Jan | 77.80% | 77.60% |
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