Last week, the dollar exhibited broad weakness amid disappointing January retail sales data, as investors focused on President Trump's potential tariff plans. With tariffs not set to take effect until April, there are hopes for negotiations that might soften their impact or prevent implementation altogether. However, this uncertainty looms large over the market, potentially preventing the dollar from gaining strength without significant macro news or further tariff developments. The upcoming data calendar appears sparse, suggesting a prolonged period of volatility as traders adjust to swirling tariff discussions.
The dollar softened last week amid softer-than-expected US retail sales, as traders focus on upcoming tariff plans and policy uncertainty.
Broad-based dollar weakness dominated as market participants processed President Trump’s tariff announcements while reflecting on disappointing January retail sales figures.
The absence of significant U.S. economic data until next month may lead to a drifting forex volatility, prolonging uncertainty surrounding tariffs.
The dollar likely requires either solid macroeconomic news or increased tariff threats to make gains, otherwise, it may continue to decline.
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