Dollar near YTD lows as yen weakens, traders adjust tariff bets
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Yen surges on higher inflation before retreating
The japanese Yen (USD/JPY) initially strengthened past 149.28 per dollar after Japan’s core CPI hit a 19-month high of 3.2%, boosting expectations for BOJ rate hikes however, comments from BOJ governor Kazuo Ueda about stepping up bond purchases led to a sharp pullback, with USD/JPY rebounding to 150.51.
Euro firms ahead of german elections
The euro (EUR/USD) remains stable around 1.0493, as traders await the outcome of Germany’s weekend elections, where polls suggest a conservative coalition victory.
Dollar retreats as traders reassess Trump’s tariff strategy
The Dollar Index (dxy) hit a year-to-date low of 106.29 before stabilizing at 106.50 long positions are unwinding as traders lose confidence in an aggressive trade war, with Trump’s tariff threats remaining largely rhetorical so far Trump confirmed a 10% tariff on China and steel and aluminum duties, but suspended planned tariffs on Canada and Mexico, reducing market panic.
Commodity currencies rally on trade optimism
The australian dollar (AUD/USD) broke above 0.64 for the first time this year, while the New Zealand dollar (NZD/USD) hit 0.5772, despite rate cuts from both central banks hopes of a China-US trade deal pushed the chinese yuan (USD/CNY) to a one-month high, as Trump confirmed president Xi Jinping will visit the U.S.
Sterling at two-month high amid resilient UK economy
The british pound (GBP/USD) touched 1.2674, its highest level since mid-december, supported by strong UK inflation data and better-than-expected retail sales.
Trading outlook
The dollar’s downside remains vulnerable, with key dxy support at 106.00 yen traders are watching for a BOJ policy shift, but upside is capped near 149.00 the euro remains firm into german elections, while commodity currencies may continue to benefit from improving trade sentiment.
The japanese Yen (USD/JPY) initially strengthened past 149.28 per dollar after Japan’s core CPI hit a 19-month high of 3.2%, boosting expectations for BOJ rate hikes however, comments from BOJ governor Kazuo Ueda about stepping up bond purchases led to a sharp pullback, with USD/JPY rebounding to 150.51.
Euro firms ahead of german elections
The euro (EUR/USD) remains stable around 1.0493, as traders await the outcome of Germany’s weekend elections, where polls suggest a conservative coalition victory.
Dollar retreats as traders reassess Trump’s tariff strategy
The Dollar Index (dxy) hit a year-to-date low of 106.29 before stabilizing at 106.50 long positions are unwinding as traders lose confidence in an aggressive trade war, with Trump’s tariff threats remaining largely rhetorical so far Trump confirmed a 10% tariff on China and steel and aluminum duties, but suspended planned tariffs on Canada and Mexico, reducing market panic.
Commodity currencies rally on trade optimism
The australian dollar (AUD/USD) broke above 0.64 for the first time this year, while the New Zealand dollar (NZD/USD) hit 0.5772, despite rate cuts from both central banks hopes of a China-US trade deal pushed the chinese yuan (USD/CNY) to a one-month high, as Trump confirmed president Xi Jinping will visit the U.S.
Sterling at two-month high amid resilient UK economy
The british pound (GBP/USD) touched 1.2674, its highest level since mid-december, supported by strong UK inflation data and better-than-expected retail sales.
Trading outlook
The dollar’s downside remains vulnerable, with key dxy support at 106.00 yen traders are watching for a BOJ policy shift, but upside is capped near 149.00 the euro remains firm into german elections, while commodity currencies may continue to benefit from improving trade sentiment.