Dollar up; Trump's Mixed Tariff Messaging Stirs Uncertainty
The US dollar firmed for a second day on Thursday, but was still close to an 11-week trough as vague pledges from US President Donald Trump to impose tariffs on Europe and further delay levies planned for Canada and Mexico stoked uncertainty. The euro edged further back from a one-month high of $1.0529 hit in the previous session, as traders took a wait-and-see approach to Trump floating the idea on Wednesday of a 25% "reciprocal" tariff on European cars and other goods. US economic uncertainty has markets pricing in two Fed rate cuts in 2025.
- The mixed messages from the Trump administration keep currencies largely within recent ranges, highlighting the ongoing struggle to predict the President's trade policies and their impact on the global economy.
- How will the ongoing uncertainty surrounding US tariffs affect the already fragile global supply chains that have been strained by the COVID-19 pandemic?