London (awp/afp) – The dollar appears mixed on Tuesday after press reports indicating that US President-elect Donald Trump would consider a “gradual” increase in customs duties.
Around 11:05 a.m., the American currency fell 0.15% against the euro, to $1.0261, after reaching a new high since November 2022 on Monday against the European currency, at $1.0178.
The greenback, however, increased by 0.17% against the British currency, to 1.2181 dollars per pound, after having climbed the day before to a new high since November 2023 against the pound, at 1.2100 dollar.
“The market’s attention shifted to US trade policy last night”, after “the publication of an article on Bloomberg according to which Donald Trump’s economic team would discuss a ‘gradual approach’ to the “increase in customs duties”, summarize Deutsche Bank analysts.
The article mentions an increase in customs tariffs of 2 to 5% per month.
Although such increases are “not trivial”, the market has focused on their “gradual and progressive” potential, note Deutsche Bank experts.
During the American presidential campaign, Donald Trump indicated that he wanted to impose 10 to 20% customs duties on all products entering the United States and even up to 60% or even 100% on those coming from China.
-Later in the session, investors will remain attentive to the PPI producer price index for December in the United States and the publication by the Treasury of the American budget for the 1st quarter of 2025.
Above all, all eyes are on the consumer price index (CPI) for December in the United States, expected Wednesday, the same day as inflation in the United Kingdom, and in several European countries including France.
“Stronger than expected inflation figures” in the United States can “support the dollar”, recalls Ipek Ozkardeskaya, analyst at Swissquote Bank, by further delaying the timetable for interest rate cuts by the Federal Reserve (Fed) .
At this stage, the market does not expect the US central bank to cut rates before May or June, due to a strong job market and the prospects of inflationary policies planned by Donald Trump.
Cours de mardi Cours de lundi 10H05 GMT 22H00 GMT EUR/USD 1,0261 1,0245 EUR/JPY 162,04 161,34 EUR/CHF 0,9397 0,9394 EUR/GBP 0,8424 0,8396 USD/JPY 157,91 157,48 USD/CHF 0,9158 0,9170 GBP/USD 1,2181 1,2202
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