As the new year unfolds, global markets are closely observing the early implications of Donald Trump’s second term in office. The former president is expected to announce reciprocal tariffs targeting multiple countries by Monday or Tuesday, though the specific nations affected have yet to be disclosed. This development is causing ripples across financial markets, with investors keenly eyeing potential impacts on international trade dynamics.
The announcement has already begun influencing currency trading. In the early Asian session on Monday, the AUD/USD pair saw increased selling pressure near the 0.6245 mark. Meanwhile, the EUR/USD pair closed the previous week at approximately 1.0370, showing little change from the prior weekly close of 1.0361. These movements are largely attributed to heightened tensions surrounding the US trade war with its significant trading partners.
Financial boards have been dominated by discussions of the US trade war, which is poised to remain a primary driver of market sentiment in the coming days. The situation has drawn comparisons to a high-stakes political thriller, reminiscent of an episode from "House of Cards." Market participants are maneuvering through this intricate landscape, seeking clarity and stability amid uncertainty.
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