Tariff speculation rocks USD as macro data signals 'US economic exceptionalism' in 2025
|We’re only a little over a week into 2025, and we’ve already seen no shortage of volatility in the dollar. Tariff speculation has dominated the narrative, but ultimately we won’t known the full details of these import taxes for a little while yet, at least until after Trump’s inauguration on 20th January.
Speculation will persist, however, and that opens the door to some wild moves in both directions. Tariff news aside, macroeconomic data out of the US remains bullish for the dollar. Tuesday’s impressive PMI figures from ISM should support calls for a ‘soft landing’ and another period of US economic exceptionalism in 2025.
There remains no signs whatsoever of recession and instead of slowing down, business activity actually accelerated at the end of last year (54.1 vs. 52.1), well above the 53.3 consensus. The dollar rallied on the news and US Treasury yields leapt towards 4.7% - the highest level since May.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.