A dreadful week saw the US Dollar (USD) deepen its retreat from the cycle highs recorded in mid-January, driven by persistent uncertainty surrounding President Trump’s trade and tariff policies, as well as comments advocating lower interest rates.
by Pablo Piovano
FX Street
The US Dollar Index (DXY) added to previous losses, breaking below the key support at 107.00 to reach new five-week lows as market participants adjusted to President Trump’s inconclusive view on tariffs as well as his defence of lower interest rates. The Chicago Fed National Activity Index will kickstart the US docket on January 27, followed by New Home Sales and the Dallas Fed Manufacturing Index. Durable Goods Orders, the FHFA’s House Price Index, the CB Consumer Confidence, and the Richmond Fed Manufacturing Index all come on January 28 prior to the API’s report on US crude oil inventories. On January 29, the FOMC event will take centre stage, seconded by the weekly Mortgage Applications by MBA, the advance Goods Trade Balance figures, and the EIA’s report on US crude oil supplies. The usual weekly Initial Jobless Claims are due on January 30 along with Pending Homes Sales and another estimate of the US Q4 GDP Growth Rate. The publication of US inflation tracked by the PCE will be in the spotlight on January 31, followed by Personal Income/Spending and the Employment Cost index.