The US Dollar Index is trading flat at the start of the European session, remaining within the narrow range seen over the past week. The index, which measures the greenback's performance against a basket of major currencies, reflects the market's current mood—anticipation and caution. Today marks the much-discussed Liberation Day, when Donald Trump is set to announce a sweeping package of tariffs that will impact all of the US's trading partners, according to the buildup of speculation. Additionally, US ADP employment data is due for release today. Given this backdrop, it is reasonable to expect that by this time tomorrow, market conditions could look quite different. The subdued trading activity around the US dollar is likely to dissipate as traders react to the details of Trump's tariff announcement. Currency crosses involving the dollar will likely see movement, with the severity of the measures playing a crucial role in shaping the market's response. The harsher the announcement is perceived to be, the greater the likelihood that the dollar will weaken, as traders factor in a scenario of slower US growth, potentially forcing the Federal Reserve to cut rates faster than previously expected.
Ricardo Evangelista – Senior Analyst, ActivTrades
>
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.