Yesterday, the greenback rallied on easing US-North Korea tensions and amid Trump’s decision to exempt Canada and Mexico from tariffs. In Eurozone, the ECB removed its QE easing bias, but Draghi’s conference disappointed EUR-bulls. Focus now turns to the US employment data for February.
USD Rallies Across the Board Ahead of the US Employment Data
The dollar traded higher against all but one of the other G10 currencies yesterday, perhaps on the easing US-North Korea tensions and amid Trump’s decision to exempt Canada and Mexico from tariffs. Indeed, this may have been the case as the only currency which USD did not manage to outperform was CAD. USD/CAD ended the day virtually unchanged.
Yesterday, US President Trump announced that Canada and Mexico will be exempted from the imposition of tariffs for an undetermined period, but the exemption will still depend on NAFTA progress. He also offered the possibility for other nations to be excluded, backpedaling from its previous stance of “no exceptions”.
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