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Currency Markets Expected to Move on U.S. Tariffs Noise -- Market Talk

Dow Jones01-21 23:41

1041 ET - Tariff noise is likely to move currency markets, BBH says in a note. President Trump stopped short of imposing across-the-board tariffs on his first day, and instead said he'd charge 25% on imports from Canada and Mexico starting Feb. 1. The dollar zigzagged during the extended U.S. holiday and the inauguration, before firming a bit today. "More and more tariff noise is likely in the coming days and weeks but we continue to look through that and focus on the underlying fundamental backdrop," BBH says. It adds that "strong growth, elevated inflation, and a more hawkish Fed continues to favor higher U.S. yields and a stronger dollar." The WSJ Dollar Index rises 0.2%. (paulo.trevisani@wsj.com; @ptrevisani)

 

(END) Dow Jones Newswires

January 21, 2025 10:41 ET (15:41 GMT)

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