Tariff threats weigh on Euro, Australian, and Canadian Dollars
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Euro, Loonie, and Aussie under pressure as trade war fears escalate; China’s retaliatory duties take effect Monday, adding uncertainty; Yen softens after strong week, investors adjust positions.
The U.S. Dollar strengthened against the Euro, Australian Dollar, and Canadian Dollar on Monday as markets absorbed the impact of President Trump’s latest trade measures. The 25% tariffs on all steel and aluminum imports, set to be announced later today, have heightened concerns over a potential global trade war. Trump also hinted at reciprocal tariffs, expected to be detailed by Wednesday, which would match the rates imposed by each nation on U.S. goods.
China’s counter-tariffs on us imports, effective Monday, add another layer of uncertainty, further pressuring risk-sensitive currencies.
Canadian Dollar under renewed pressure
The Canadian Dollar (USD/CAD) weakened 0.33% to 1.4347, as Canada remains a major exporter of steel and aluminum to the U.S. while the loonie remains above last week’s 20-year low of 1.4792, investors remain cautious ahead of potential additional trade measures.
Euro and Australian Dollar face selling pressure
The euro (EUR/USD) dropped nearly 0.5% in asian trading before recovering slightly, last trading around 1.0312, down 0.14%. the currency remains fragile after last week’s drop to a two-year low of 1.0125, as concerns over eurozone exposure to U.S. tariffs persist. The Australian Dollar (AUD/USD) followed a similar trajectory, declining 0.13% to 0.6269, with trade-linked currencies struggling amid fears of a prolonged trade dispute.
Yen weakens after strong performance last week
The Japanese Yen (USD/JPY) lost 0.7% to 152.43, marking a reversal from last week’s strength. After a 4.6% decline in the U.S. Dollar against the yen over four weeks, traders took profits, leading to a short-term pullback in the japanese currency.
China’s Yuan slips past key threshold
The onshore Yuan (USD/CNY) breached the 7.30 per Dollar level for the first time since January 20, reflecting concerns over China’s economic outlook as tariffs take effect.
Market focus shifts to inflation data and FED testimony
Beyond trade tensions, markets are looking ahead to U.S. inflation data on Wednesday, along with Federal Reserve chair Jerome Powell’s testimony before congress on Tuesday and Wednesday. Investors will be watching for any signals on the FED’s stance regarding interest rates, with tariffs expected to be a key topic.
The U.S. Dollar strengthened against the Euro, Australian Dollar, and Canadian Dollar on Monday as markets absorbed the impact of President Trump’s latest trade measures. The 25% tariffs on all steel and aluminum imports, set to be announced later today, have heightened concerns over a potential global trade war. Trump also hinted at reciprocal tariffs, expected to be detailed by Wednesday, which would match the rates imposed by each nation on U.S. goods.
China’s counter-tariffs on us imports, effective Monday, add another layer of uncertainty, further pressuring risk-sensitive currencies.
Canadian Dollar under renewed pressure
The Canadian Dollar (USD/CAD) weakened 0.33% to 1.4347, as Canada remains a major exporter of steel and aluminum to the U.S. while the loonie remains above last week’s 20-year low of 1.4792, investors remain cautious ahead of potential additional trade measures.
Euro and Australian Dollar face selling pressure
The euro (EUR/USD) dropped nearly 0.5% in asian trading before recovering slightly, last trading around 1.0312, down 0.14%. the currency remains fragile after last week’s drop to a two-year low of 1.0125, as concerns over eurozone exposure to U.S. tariffs persist. The Australian Dollar (AUD/USD) followed a similar trajectory, declining 0.13% to 0.6269, with trade-linked currencies struggling amid fears of a prolonged trade dispute.
Yen weakens after strong performance last week
The Japanese Yen (USD/JPY) lost 0.7% to 152.43, marking a reversal from last week’s strength. After a 4.6% decline in the U.S. Dollar against the yen over four weeks, traders took profits, leading to a short-term pullback in the japanese currency.
China’s Yuan slips past key threshold
The onshore Yuan (USD/CNY) breached the 7.30 per Dollar level for the first time since January 20, reflecting concerns over China’s economic outlook as tariffs take effect.
Market focus shifts to inflation data and FED testimony
Beyond trade tensions, markets are looking ahead to U.S. inflation data on Wednesday, along with Federal Reserve chair Jerome Powell’s testimony before congress on Tuesday and Wednesday. Investors will be watching for any signals on the FED’s stance regarding interest rates, with tariffs expected to be a key topic.