Dollar steady as tariff uncertainty clouds outlook on ‘Liberation Day’

2 Nisan 2025

Today’s markets analysis on behalf of George Pavel General Manager at Naga.com Middle East

The US Dollar traded within a narrow range as investors adopted a cautious stance amid escalating trade tensions and lingering economic uncertainty. President Trump is expected to announce a new wave of tariffs on Wednesday, targeting all countries imposing duties on US goods. While the full scope remains unclear, reports suggest the administration is weighing a blanket 20% tariff on most imports, raising fears of global retaliation and pressure on the greenback.

Adding to the cautious sentiment, ISM Manufacturing PMI contracted in March, while job openings declined slightly in February and inflationary risks persisted.

Looking ahead, all eyes will be on Powell’s Friday speech, which could offer valuable clues on the Fed’s next steps. A neutral tone may support the central bank’s current stance, especially with inflation still in focus. Meanwhile, ISM Services and NFP data will also be closely monitored.

 

Zaid Barem / ymm