- DF
- Forex News
- Forex Today: Trump Tariffs Send US Dollar Soaring
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker’s track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.
Forex Today: Trump Tariffs Send US Dollar Soaring
By Adam Lemon Created on February 03, 2025
Tariffs imposed by the USA on select countries over the weekend are strongly moving markets in the greenback’s favor, especially in the Forex market.
- The news is dominated by tariffs. The new tariffs imposed by the USA against Mexico (25%), Canada (25% except energies 10%), and China (10%) have produced unusually large movements in the Forex market within ony a few hours of the weekly open. The move is strongly in favor of the USD and strongly against the tariff affected and threatened countries:
- This move looks likely to continue or at least be sustained. Developed economies have not seen this kind of trade war in decades, so markets will probably find it hard to price in these developments. Traders will be wise to trade Forex today and look to be long of the US Dollar.
- President Trump has also said in recent hours that he will definitely impose new tariffs against the EU, which has sent the EUR/USD currency pair lower by 1.36% as it falls to a level close to a multi-year low/
- Canada has retaliated with a blanket tariff of 25% on US imports, but it seems to be having little effect on the market. Canada imports about 20% more than it exports to the USA.
- The Australian Dollar as a major exporter of raw materials currency is also hit hard, with the AUD/USD currency pair lower by 1.85% and also trading at a 3.5-year low price.
- As the tariff war takes effect and creates a strong risk-off environment, we see risky assets generally declining and safe havens such as the Japanese Yen getting a boost. Almost all major equity indices are lower, even in the USA, although there that may be due mostly to US Dollar strength.
- Coffee futures continued their long-term bullish trend last Friday, rising strongly to a new record high price. Trend traders will be interested to be long of Coffee. Although Coffee futures can be expensive, retail traders and investors can gain exposure to Coffee via the COFF ETF.
- Bitcoin has been hit by the risk-off environment, trading almost 4% down on the day below $95,000.
- There will be a release of US ISM Manufacturing data today
- It is a public holiday in China today.
Ready to trade our Forex daily forecast? We’ve shortlisted the best forex broker list for you to check out
Subscribe
Sign up to get the latest market updates and free signals directly to your inbox.
Please enter a valid email address
Help me Choose a Broker *By registering you agree to receive communications.
Most Visited Forex Broker Reviews
Latest News
Top Forex Brokers
More » View More Brokers 1 Get Started Review
Bonuses & Promotions
Subscribe
Sign up to get the latest market updates and free signals directly to your inbox.
Please enter a valid email address
Help me Choose a Broker *By registering you agree to receive communications.
Advertisement
This post is originally published on DAILYFOREX.
