The US Dollar is currently consolidating its downside as market participants respond to recent developments in global trade policies. President Trump has announced the implementation of tariffs on several of America's trading partners, with further tariffs anticipated in the coming quarters. This move has delayed the imposition of reciprocal tariffs, improving risk sentiment in financial markets. Meanwhile, the focus now turns to the upcoming US Retail Sales data, a key economic indicator that could influence market dynamics.
The global trading community is bracing for potential foreign retaliation in response to these newly announced tariffs. The Trump administration's economic policies are beginning to take shape, and investors are keenly observing how these measures will impact international trade relations. In the currency market, GBP/USD is trading above 1.2550 during the early European session on Friday, while EUR/USD hovers near 1.0450.
Traders are also processing updates regarding Trump's tariffs and developments in the Russia-Ukraine peace deal. With a packed EU and US economic calendar, market participants are poised for a busy trading day. The evolving geopolitical landscape, coupled with economic data releases, is expected to drive market volatility.
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