There is no doubt that the market doesn’t like tariffs; stocks sell off every time Trump announces a new round, but so far, the effect hasn’t lingered.
The USD/CAD outlook indicates unexpected strength in Canada’s economy. The outlook for Canada’s economy remains gloomy.
PCE data revealed a decline in US consumer spending.
The dollar rallied in the second half of last week even as interest rates fell amid a new growth scare. The 25% tariffs on Canada (10% on energy) and Mexico that were postponed a month ago, could be implemented as early as tomorrow.
In recent weeks, US tariff threats and doubts about whether its defense commitments will hold up have become the biggest concern for businesses, investors, and politicians.
The EUR/USD forecast shows a rebound in the euro. The meeting between the US president and Ukraine’s president went south. Market participants are pricing a 79% chance of a Fed rate cut in June
The US dollar was the strongest major currency last week, while the Australian dollar was the weakest. Volatility increased over the trading period, as only 41% of the most important Forex currency pairs and crosses changed in value by more than 1%.
The US dollar rallied during the course of the week as it turned around to break above the JPY150 level. The USD/JPY currency pair recently formed a bit of a double bottom on the chart, while the 50-week EMA above has been offering resistance.
