MNI: PBOC Net Drains CNY150.6 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Higher At 7.1879 Tues; -2.42% Y/Y

JUSTIN TRUDEAU TO STEP DOWN AS CANADA LIBERAL LEADER AND PM

MNI China Daily Summary: Monday, January 6

MNI INTERVIEW2: China Central Gov Should Buy Unsold Houses

MNI China Press Digest Jan 6: PBOC Bills, Yuan, Capital Market

MNI: AUSTRALIA NOV BUILDING APPROVALS -3.6% M/M, +3.2% Y/Y

MNI: AUSTRALIA DEC DWELLING APPROVALS -3.6% M/M

MNI: UK BRC DEC BY VALUE SHOP SALES LFL +3.1% YY, TOTAL +3.2% YY

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: USD Significantly Weaker Amid Report on Softening Trump Tariff Policy

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets
  • The Washington Post reports that US President-elect Donald Trump’s aides are "exploring plans" to apply tariffs to every country “but only cover critical imports” providing potential for slightly less protectionist U.S. trade policy. The article has bolstered the existing direction of travel for the greenback on Monday, with the USD index extending session lows and briefly bringing the DXY’s pullback to around 1.5% from last week’s highs.
  • EURUSD (+1.05%) surged back above 1.0400, and notably rose above initial 20-day EMA resistance to print a 1.0432 high, having now recovered over 200 pips from the 1.0226 lows on Jan 02. Above here, 1.0458 is the Dec 30 high.
  • Similar strength seen across higher beta currencies such as AUD and NZD, which extend gains to around 1% on the day. Cable has risen back above 1.25 and will look to initial firm resistance at 1.2562, the 20-day EMA.
  • USDJPY also significantly knocked off its highs, reversing around 70 pips to trade closer to unchanged on the session. USDMXN (-0.80%) prints fresh session lows below 20.50.
  • There will be particular focus on the Canadian dollar as betting markets shift to 95% probability of imminent PM Trudeau resignation. USDCAD is down 0.9% on the session with pullback seen as technically corrective at this juncture.  Initial firm support has been pierced at 1.4320, the 20-day EMA.
  • German national-level HICP & CPI inflation is scheduled to be released later today 13:00 GMT. US Final Services PMI and Factory Orders are due for release, and FOMC Member Cook will speak.
248 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • The Washington Post reports that US President-elect Donald Trump’s aides are "exploring plans" to apply tariffs to every country “but only cover critical imports” providing potential for slightly less protectionist U.S. trade policy. The article has bolstered the existing direction of travel for the greenback on Monday, with the USD index extending session lows and briefly bringing the DXY’s pullback to around 1.5% from last week’s highs.
  • EURUSD (+1.05%) surged back above 1.0400, and notably rose above initial 20-day EMA resistance to print a 1.0432 high, having now recovered over 200 pips from the 1.0226 lows on Jan 02. Above here, 1.0458 is the Dec 30 high.
  • Similar strength seen across higher beta currencies such as AUD and NZD, which extend gains to around 1% on the day. Cable has risen back above 1.25 and will look to initial firm resistance at 1.2562, the 20-day EMA.
  • USDJPY also significantly knocked off its highs, reversing around 70 pips to trade closer to unchanged on the session. USDMXN (-0.80%) prints fresh session lows below 20.50.
  • There will be particular focus on the Canadian dollar as betting markets shift to 95% probability of imminent PM Trudeau resignation. USDCAD is down 0.9% on the session with pullback seen as technically corrective at this juncture.  Initial firm support has been pierced at 1.4320, the 20-day EMA.
  • German national-level HICP & CPI inflation is scheduled to be released later today 13:00 GMT. US Final Services PMI and Factory Orders are due for release, and FOMC Member Cook will speak.