Tariff man strikes again and the dollar is sitting higher today. It’s another reminder that with Trump, you never know what you’re gonna get right before the end of the day in the US. He is up threatening with tariffs again and you can check out the headlines here. This is now seeing the dollar bounce back today with USD/JPY more or less erasing yesterday’s drop.
USD/JPY daily chart
The rebound also comes amid a bounce off the support from the 50.0 Fib retracement level at 153.75. But as buyers push price action back above 155.00, sellers are facing a setback in trying to steer the ship downwards again.
Elsewhere, EUR/USD is down 0.5% to 1.0433 and GBP/USD down 0.4% to 1.2441 currently. Meanwhile, the antipodeans are shoved lower with AUD/USD down 0.6% to 0.6250 and falling back below both its key hourly moving averages. A shift in the tides, essentially.
For now, there’s no major point of action yet as tariffs continue to be used as a threat and/or blackmail tool. Market players did feel last week that Trump’s bark might be worse than his bite. But if the headlines today are any lesson, it is that market players still do have a small pocket of fear that it could escalate.
We’re still in that part of the story when the boy cries wolf, the people will still come running.