US Dollar Falls as Markets Price in Reciprocal Tariffs Delay
The U.S. dollar fell against trading pairs as markets price in delayed in reciprocal tariffs implementation. This caused the greenback to retreat amidst busy schedule of data releases.
Against expectation, reciprocal tariffs were not immediately imposed, while a U.S. producer price report helped sooth some inflation concerns. U.S. President Donald Trump directed his economic team on Thursday to formulate plans for reciprocal tariffs on every country that imposes taxes on U.S. imports.
But he stopped short of quickly unveiling another round of tariffs, instead kicking off what could be weeks or months of investigation into other countries’ levies imposed on U.S. goods.
A quick summary of foreign exchange activity heading into Friday showed that USDEUR rose to 1.0467 from 1.0462 at the Thursday US close and 1.0421 at the same time Thursday morning.
Eurozone GDP grew only modestly in Q1, keeping the year-over-year rate in line with the previous quarter, while employment growth slowed in Q2 from the previous quarter, according to data released earlier Friday. The next European Central Bank meeting is scheduled for March 5-6.
GBPUSD rose to 1.2583 from 1.2562 at the Thursday US close and 1.2475 at the same time Thursday morning. There are no UK data on Friday’s schedule. The next Bank of England meeting is scheduled for March 20.
USDJPY fell to 152.7305 from 152.7333 at the Thursday US close and 153.7831 at the same time Thursday morning. Japanese consumer sentiment declined in February, according to data released overnight. The next Bank of Japan meeting is scheduled for March 18-19.
USDCAD fell to 1.4182 from 1.4186 at the Thursday US close and 1.4294 at the same time Thursday morning. Canadian manufacturing, wholesale and motor vehicle sales for December are due to be released. The next Bank of Canada meeting is scheduled for March 12. #US Dollar Falls as Markets Price in Reciprocal Tariffs Delay Oil Prices Rally as U.S Tariffs Raise Supply Risks
