Interest in the Dollar Declines Amid Trump's Escalating Trade Wars
The tariffs introduced by Trump yesterday on imports from various countries20% on the EU, 34% on China, and 46% on Vietnamhave heightened uncertainty in the currency markets. As expected, these measures have contributed to increased volatility in major currency pairs. The actions of the White House administration have led to losses for the dollar, causing concern among investors. The tariffs also affect countries such as Taiwan (32%), Japan (24%), and South Korea (25%), which could significantly impact exchange rates. Amid global economic instability, market participants are focused on how these changes will affect the world economy.
USD/JPY
Yesterday, before Donald Trump's speech, the USD/JPY currency pair was trading near 150.00. Better-than-expected preliminary labour market data and a rise in US industrial orders for February (0.6% versus the forecast of 0.5%) contributed to a slight strengthening of USD/JPY. However, the US Presidents announcement of trade tariffs led to sharp market fluctuations and a loss of more than 150 pips for USD/JPY within just a few hours. At present, the pair is trading below 148.00. A technical analysis of USD/JPY suggests a possible test of this year's March lows in the 147.20146.70 range.
Key events that could influence USD/JPY today:
- 13:00 (GMT+2): OPEC meeting (USA)
- 14:30 (GMT+2): Challenger job cuts report (March) (USA)
- 15:30 (GMT+2): Total number of unemployment benefit recipients (USA)
- 15:30 (GMT+2): Export and import volume (February) (USA)
USD/CAD
The news of tariffs enabled USD/CAD sellers to break below the lower boundary of the medium-term flat corridor 1.44701.4260. If the 1.4260 level turns into a support level, a test of this year's February lows around 1.4150 could be expected. A reversal of the downward scenario would be possible if the price strengthens confidently above 1.4470.
Key news that could impact USD/CAD pricing:
- 15:30 (GMT+2): Export volume (February) (Canada)
- 15:30 (GMT+2): Trade balance (Canada)
- 16:45 (GMT+2): Composite PMI by S&P Global (March) (USA)
- 16:45 (GMT+2): Services PMI (March) (USA)
Read more: https://fxopen.com/blog/en/ru-interest-in-the-dollar-declines-amid-trumps-escalating-trade-wars/
Text source: Forex Trading Blog
