Trump Surprising Moves Amid a Quiet Data Week
FX Update
Dollar Index
The U.S. dollar alternated between gains and losses on Tuesday in a choppy session, as markets grappled with uncertainty surrounding any tariffs President Donald Trump may implement.
Trump told reporters he was thinking about implementing tariffs of around 25% on imports from Canada and Mexico as of Feb. 1 over fentanyl crossing into the country and migrants entering illegally. He also raised the possibility of a universal tariff but said the U.S. was not ready for that yet.
The dollar rose as much as 0.68% earlier in the session as the greenback attempted to bounce back from a sharp decline on Monday. Trump’s first day in office passed with no specific plans on tariffs and officials said any new taxes would be imposed in a measured way, a relief for trade-exposed currencies.
Crude Oil:
Oil prices fell on Tuesday after U.S. President Donald Trump declared a national energy emergency on his first day in office, raising concerns of higher U.S. output in a market widely expected to be oversupplied this year.
Gold:
Gold prices jumped to an over two-month peak on Tuesday, supported by a weaker dollar and as markets flocked to the safe-haven asset amid uncertainty surrounding U.S. President Donald Trump’s potential tariffs.
Aluminum
Aluminium prices fell on Tuesday as the risk of possible trade wars hurting current trade flows resurfaced after President Donald Trump suggested the United States could impose a 25% tariff on imports from Canada and Mexico from Feb. 1.
MCX Closing Update
Gold 79,224 (0.87%), Silver 92,091 (0.71%), Crude oil 6,564 (-0.74%), Copper 833.70( 0.22%), Natural Gas 325.30 (-2.02%).
Economic Data and Event Releases yesterday
UK
UK wage growth, Average Earnings Including Bonus matched expectations at 5.6%, up from 5.2%. However, labor growth weakened sharply, with just 35K jobs added versus 173K previously.
The ILO Unemployment Rate edged up to 4.4%, above the forecast and prior 4.3%.
Eurozone
The headline German ZEW Economic Sentiment Index declined to 10.3 in January from 15.7 in December, missing the market consensus of 15.3.
The Current Situation Index improved to -90.4 in the same period, as against December’s -93.1 figure. Data beat the expected -93.1 reading.
The Eurozone ZEW Economic Sentiment Index arrived at 18 in January versus 17 in December. The market forecast was 16.9..
Economic Data and Event scheduled today
UK
At 12.3pm-
Public Sector Net Borrowing. Data is foreseen at 13.7B from previous 11.2B.
Tentative – BOE Quarterly Bulletin.
Above data could have a volatile impact on the Pound.
Eurozone
Tentative – German Buba Monthly Report.
At 8.45pm- ECB President Lagarde Speaks.
Above data could have a mixed impact on the Euro.
Canada
At 7.00pm-
IPPI m/m. Data is foreseen at 0.8% from previous 0.6%.
RMPI m/m. Data is foreseen at 0.4% from previous -0.5%.
Above data could have a volatile impact on the Canadian dollar.
US
At 8.30pm-CB Leading Index m/m. Data is foreseen at -0.1% from previous 0.3%.
Above data could have a volatile impact on the Canadian dollar.
Until then, Happy Trading!
Commodity Samachar Securities
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Also Read:Â Focus Crude Oil Price: U.S. Policies Driving Global Changes , UK Jobs Number, German Eco Sentiment in Focus today
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