Dollar Reverses as Markets Doubt Lasting Impact of US Tariff Ruling
| Action Insight Mid-Day 5-29-25 |
Dollar Reverses as Markets Doubt Lasting Impact of US Tariff Ruling |
Dollar initially surged after the US Court of International Trade ruled against President Donald Trump’s sweeping reciprocal tariff orders. Market participants initially interpreted the ruling as a potential turning point in the US trade policy, fueling a rally in the greenback and risk assets. However, the greenback's rally proved short-lived. As the US session opened, the greenback reversed course and turned broadly lower. Traders began to reassess the practical implications of the ruling, with many suspecting that the Trump administration could still find legal or procedural workarounds to reinstate the tariffs. In that context, the ruling may have increased legal complexity but done little to reduce the overarching geopolitical uncertainty. Traders are clearly skeptical that the legal setback will lead to a meaningful shift in trade tensions. Indeed, skepticism is evident across financial markets. DOW futures, which had gained more than 500 points earlier in the day, gave back almost all of those gains. NASDAQ remained resilient, supported by tech sector optimism, but broader risk appetite appeared to fade. Gold, meanwhile, rebounded above the 3300 level as safe-haven demand returned, signaling that markets are still hedging against unresolved geopolitical and policy risks.... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.3440; (P) 1.3481; (R1) 1.3512; More... Intraday bias in GBP/USD remains neutral for the moment. With 1.3389 support intact, further rally is expected. On the upside, firm break of 1.3592 will resume larger rally for 100% projection of 1.2706 to 1.3442 from 1.3138 at 1.3874. However, decisive break of 1.3389 will confirm short term topping, and turn bias back to the downside for 1.3138 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:00 | NZD | ANZ Business Confidence May | 36.6 | 49.3 | | 01:30 | AUD | Private Capital Expenditure Q1 | -0.10% | 0.50% | -0.20% | 0.20% | | 05:00 | JPY | Consumer Confidence May | 32.8 | 31.8 | 31.2 | | 12:30 | CAD | Current Account (CAD) Q1 | -2.1B | -3.6B | -5.0B | -3.6B | | 12:30 | USD | Initial Jobless Claims (May 23) | 240K | 230K | 227K | 226K | | 12:30 | USD | GDP Annualized Q1 P | -0.20% | -0.30% | -0.30% | | 12:30 | USD | GDP Price Index Q1 P | 3.70% | 3.70% | 3.70% | | 14:00 | USD | Pending Home Sales M/M Apr | -1.00% | 6.10% | | 14:30 | USD | Natural Gas Storage | 98B | 120B | | 15:00 | USD | Crude Oil Inventories | 0.3M | 1.3M |
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