{"id":111611,"date":"2025-02-10T14:14:58","date_gmt":"2025-02-10T10:14:58","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=111611"},"modified":"2025-02-10T14:26:47","modified_gmt":"2025-02-10T10:26:47","slug":"dollar-strengthens-as-trump-announces-new-tariffs","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/dollar-strengthens-as-trump-announces-new-tariffs\/02\/10\/market-updates\/","title":{"rendered":"Dollar Strengthens as Trump Announces New Tariffs"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><\/h3>\n\n\n\n<p>The <strong>U.S. dollar edged higher on Monday<\/strong> as investors reacted to <strong>President Donald Trump\u2019s announcement of 25% tariffs<\/strong> on all <strong>steel and aluminum imports<\/strong>, with additional <strong>reciprocal tariffs expected midweek<\/strong>.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>U.S. Dollar Index (DXY)<\/strong>: <strong>Up 0.1%<\/strong> to <strong>108.17<\/strong><\/li>\n\n\n\n<li><strong>USD\/JPY<\/strong>: <strong>Up 0.59%<\/strong>, reversing last week\u2019s yen rally<\/li>\n\n\n\n<li><strong>EUR\/USD<\/strong>: <strong>Flat at $1.0329<\/strong><\/li>\n\n\n\n<li><strong>USD\/CAD<\/strong>: <strong>Up 0.2%<\/strong>, before moderating<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Key Market Reactions<\/strong><\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Stock Markets Rebound Despite Tariff Concerns<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>U.S. Futures<\/strong>: <strong>S&amp;P 500 contracts up 0.35%<\/strong>, rebounding after a <strong>0.95% drop on Friday<\/strong><\/li>\n\n\n\n<li><strong>Europe&#8217;s STOXX 600<\/strong>: <strong>Up 0.28%<\/strong>, despite Friday\u2019s <strong>0.38% decline<\/strong><\/li>\n\n\n\n<li><strong>Nikkei 225<\/strong>: <strong>Flat<\/strong><\/li>\n\n\n\n<li><strong>Hang Seng<\/strong>: <strong>Up 1.84%<\/strong><\/li>\n\n\n\n<li><strong>China\u2019s CSI 300<\/strong>: <strong>Up 0.21%<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Steelmakers Under Pressure<\/strong>\n<ul class=\"wp-block-list\">\n<li>European steel stocks <strong>declined<\/strong>, with <strong>ArcelorMittal<\/strong> and <strong>Salzgitter<\/strong> among the biggest losers.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>U.S. Interest Rate Outlook and Inflation Risks<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Tariffs could fuel inflation<\/strong>, reducing the Fed\u2019s ability to cut rates.<\/li>\n\n\n\n<li><strong>Markets now expect just 36 basis points of Fed rate cuts in 2025<\/strong>, down from 42 bps.<\/li>\n\n\n\n<li><strong>10-year Treasury yield rose 1 basis point to 4.497%<\/strong>, signaling modest risk-off sentiment.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Fed Watch: Powell\u2019s Testimony in Focus<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fed Chair Jerome Powell<\/strong> will testify before Congress on <strong>Tuesday and Wednesday<\/strong>, where <strong>tariff impacts on policy<\/strong> will likely be a key discussion point.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Market Outlook<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The dollar remains supported<\/strong> as <strong>tariff risks fuel inflation concerns<\/strong> and <strong>limit Fed easing potential<\/strong>.<\/li>\n\n\n\n<li><strong>Equities show resilience<\/strong>, but steel and commodity-related sectors face <strong>headwinds<\/strong>.<\/li>\n\n\n\n<li><strong>All eyes on Powell&#8217;s testimony<\/strong>, as traders gauge the Fed\u2019s stance on rates in response to trade developments.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. dollar edged higher on Monday as investors reacted to President Donald Trump\u2019s announcement of 25% tariffs on all steel and aluminum imports, with additional reciprocal tariffs expected midweek. U.S. Dollar Index (DXY): Up 0.1% to 108.17 USD\/JPY: Up 0.59%, reversing last week\u2019s yen rally EUR\/USD: Flat at $1.0329 USD\/CAD: Up 0.2%, before moderating &hellip;<\/p>\n","protected":false},"author":9,"featured_media":34466,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[8541,8432,10966,6875,8324],"class_list":["post-111611","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates","tag-geopolitical-tensions","tag-nato","tag-nuclear-weapon","tag-russia","tag-us-dollar-index"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/111611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=111611"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/111611\/revisions"}],"predecessor-version":[{"id":111615,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/111611\/revisions\/111615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/34466"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=111611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=111611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=111611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}