US dollar bounces back after Trump delays tariffs on Mexico and Canada, but tensions with China.

From Investing.com: 2025-02-04 05:41:00

The US dollar initially fell back after Mexico and Canada agreed with Trump, but rebounded as China announced retaliatory tariffs, causing a roller-coaster on Wall Street. Trump delayed tariffs on Mexico and Canada, but initiated conflict with China, impacting global markets.

The Australian and New Zealand dollars are the main losers due to their trade relations with China, with investors expecting rate cuts by their central banks. Gold hit a fresh record high, driven by a strong dollar from tariff threats and safe-haven demand amid lower rate expectations.

Earnings season is taking a back seat on Wall Street as tariff tensions drive market movements, with uncertainty overshadowing company results. The continuation of uptrends may be uncertain as investors closely monitor tariff-related news for market direction.



Read more at Investing.com: US Dollar Recovers as Trump Delays Tariffs on Mexico and Canada but Hits China