The U.S. Dollar is down against the majority of it’s G10 peers this morning as Traders brace for President Trump’s address at the World Economic Forum in Davos, Switzerland.
Greenland is expected to be a focal point of Trump’s address, with emphasis on placing America first. This is an opportunity to ease tensions that have been steadily building over increasingly heated rhetoric, and conciliatory remarks from Trump would go a long way in calming panicked Traders.
In non-Davos news, the Supreme Court did not rule on President Trump’s use of The International Emergency Economic Powers Act (IEEPA) to impose wide-spread tariffs yesterday but will begin hearing oral arguments in the case surrounding President Trump’s attempt to fire Federal Reserve Member Lisa Cook today. Both cases have far-reaching implications regarding limitations on presidential authority, but administration officials have indicated that they would immediately begin replacing the tariffs if those that are currently imposed are overruled.
What to Watch This Week…
- Monex USA Online is always open
AUD ⇑
The Australian Dollar has rallied to a 15-month high against the Greenback this morning on the back of demand for safe-haven assets amid ongoing geopolitical tensions. The Reserve Bank of Australia has cut interest rates by 75bps since this time last year, but renewed inflation pressures indicate that their next move could be a hike despite a softening labor market. As the RBA tries to remain “data-dependent and flexible,” next week’s inflation data will be a key data point ahead of their February meeting and could very well force their hand into a move.
