Dollar Weakened by Reports Trump Is Holding Off on New Tariffs
| Action Insight Mid-Day Report 1-20-25 |
Dollar Weakened by Reports Trump Is Holding Off on New Tariffs |
Dollar weakened broadly in early US session as reports from The Wall Street Journal indicated that Donald Trump, during his inauguration, will only outline his trade vision but avoid imposing new tariffs for now. While this temporarily calms market fears of immediate disruptions, the situation remains dynamic, and unexpected developments could trigger sharp reversals, especially if the WSJ report proves inaccurate. According to the report, Trump plans to issue a memorandum directing federal agencies to study trade policies and assess trade relationships with key partners, including China, Canada, and Mexico. The memorandum is expected to focus on addressing persistent trade deficits and investigating unfair trade and currency practices. Specific directives include examining China’s compliance with the 2020 trade deal and reviewing the US-Mexico-Canada Agreement, which is up for re-evaluation in 2026. These steps suggest Trump is prioritizing groundwork over immediate action, but the spotlight remains on the possibility of future tariffs.... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0247; (P) 1.0289; (R1) 1.0313; More... EUR/USD is still capped below 1.0435 resistance despite extending rebound from 1.0176. Intraday bias remains neutral and outlook stay bearish. Firm break of 1.0176 will resume whole fall from 1.1213. However, decisive break of 1.0435 will confirm short term bottoming, and turn bias back to the upside for stronger rebound to 38.2% retracement of 1.1213 to 1.0176 at 1.0572 first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Machinery Orders M/M Nov | 3.40% | -0.70% | 2.10% | | 00:01 | GBP | Rightmove House Price Index M/M Jan | 1.70% | -1.70% | | 01:00 | CNY | 1-y Loan Prime Rate | 3.10% | 3.10% | 3.10% | | 01:00 | CNY | 5-y Loan Prime Rate | 3.60% | 3.60% | 3.60% | | 04:30 | JPY | Tertiary Industry Index M/M Nov | -0.30% | 0.10% | 0.30% | 0.10% | | 04:30 | JPY | Industrial Production M/M Nov F | -2.20% | -2.30% | -2.30% | | 07:00 | EUR | Germany PPI M/M Dec | -0.10% | 0.30% | 0.50% | | 07:00 | EUR | Germany PPI Y/Y Dec | 0.80% | 1.10% | 0.10% | | 07:30 | CHF | PPI M/M Dec | 0.00% | 0.20% | -0.60% | | 07:30 | CHF | PPI Y/Y Dec | -0.90% | -1.50% | | 15:30 | CAD | BoC Business Outlook Survey |
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