The US dollar dropped significantly on Monday after new reports surfaced. The Wall Street Journal suggested that President-elect Donald Trump may delay imposing trade tariffs upon his inauguration. Previously, expectations of immediate action had driven the dollar higher following his November election victory.
At 09:20 ET (14:20 GMT), the Dollar Index fell 1.1% to 108.020. This was a stark reversal from its two-year high reached just last week.
The report reveals that on inauguration day, Trump has plans to issue a comprehensive memorandum that is expected to have significant implications for U.S. trade policy. This directive aims to prompt various federal agencies to undertake a careful review of existing trade policies and the relationships the United States maintains with critical trading partners, including China, Canada, and Mexico. However, it is important to note that the memorandum will refrain from implementing new tariffs on the very first day of the new administration's tenure.
The memo reflects ongoing discussions within the incoming administration about fulfilling Trump's campaign promises, particularly the controversial proposal to impose significant tariffs on imports from major trade partners like China. These deliberations indicate a clear intent to reevaluate and possibly reform trade relations, though initial actions may be more cautious than some supporters expect.
Since the November election, the dollar gained approximately 4%, as traders expected inflationary policies from Trump’s administration. These policies would likely require higher interest rates for an extended period.
Analysts at ING stated, “Financial markets are on tenterhooks to see what executive orders newly elected US President Donald Trump will enact on his first day.”
The FX market is particularly focused on potential tariff-related announcements. Market participants are eager to see how Trump’s administration plans to handle major trade relationships.
For the latest updates on Forex trading, market analysis, and insights of Trump tariff delay, visit our website: FixioMarkets.com. Don’t miss any crucial developments in the financial world.
US dollar slumps after reports of Trump tariff delay. Learn more about this development and its impact on Forex markets.
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