Forex News: Dollar Edges Higher Ahead of Tariffs Announcement; Euro Slips and more
U.S. Dollar Gains Amid Tariff Uncertainty
The U.S. dollar posted small gains Tuesday, drifting ahead of the likely imposition of reciprocal tariffs by U.S. President Donald Trump later this week, while the euro weakened ahead of key inflation data.
At 03:05 ET (08:05 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher to 103.937.
JOLTS Data Due
The dollar has largely stalled in anticipation of President Trump’s unveiling of more trade tariffs potentially as early as this evening, but more likely on Wednesday - the day he has deemed "Liberation Day."
Trump has argued that the tariffs are necessary to correct imbalances between the U.S. and its foreign trade partners, as well as a tool to bring manufacturing jobs back to the country.
However, some economists have warned that the duties will refuel inflationary pressures and weigh on growth, leading to a period of so-called "stagflation."
Eurozone CPI in Spotlight
In Europe, EUR/USD traded 0.1% lower to 1.0801, ahead of the release of key economic data, including March consumer prices.
The eurozone CPI index is expected to fall to 2.2% in March on an annual basis, from 2.3% the prior month, but a surprise to the downside is possible given German inflation fell more than expected in March.
Safe-Haven Yen Gains
In Asia, USD/JPY traded 0.3% lower to 149.61, with the safe-haven Japanese yen helped by data showing a mild, unexpected improvement in Japan’s unemployment rate.
The yen rose nearly 5% against the dollar in the January-March period on growing bets that the Bank of Japan would hike interest rates again.
Commodity Currencies Mixed
USD/CNY edged 0.2% higher to 7.2681, even as private PMI data showed better-than-expected growth in the manufacturing sector, mirroring a government reading from Monday.
AUD/USD rose 0.1% to 0.6248, trimming early gains after the RBA kept interest rates steady at 4.1%.
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