FX continues to hold little changed on the session

The snapshot above shows the small changes and tight ranges that dollar pairs are holding so far today. The dollar is keeping steadier as a whole from yesterday, as traders are still digesting Trump’s tariffs since the weekend. He announced 25% tariffs on steel and aluminum as expected but now we’ll have to wait and see the details of his reciprocal tariffs. That announcement might come later today or perhaps tomorrow, according to the tariff man himself.

In other markets, equities are more guarded today with S&P 500 futures seen down 0.3% after having gained yesterday. There’s some trepidation amid the potential retaliation by other countries, should Trump follow through on reciprocal tariffs.

Meanwhile, the bond market is also seeing yields nudge back up for a fourth straight day. 10-year yields in the US are up 2 bps to 4.517% now, creeping back above the key technical neckline of 4.50% previously. A not-so-fast moment for bonds?

Elsewhere, we’re also seeing gold pare gains on the day to $2,908 now as the upside run loses a bit of steam. The high earlier in the day touched $2,942 before a quick plummet to $2,905 in Asia trading. The precious metal hovered around $2,915-20 levels after but is now creeping lower again on the session.

The main events will all be in US trading later. Broader markets will be watching out for more Trump tariff headlines as well as Fed chair Powell’s testimony to Congress. Amid all of that, there will also be a switch in focus to US data again with the CPI report coming up tomorrow. So, just be wary of that.

This article was written by Justin Low at www.forexlive.com.