Forex Today: Trump's tariffs weigh on USD before meeting Boris, AUD surges, EUR rising

Yohay Elam FXStreet

Here is what you need to know on Tuesday, December 3:

Global markets are concerned by President Donald Trump's intention to slap tariffs on French products, worth $2.4 billion, in response to France's digital tax. Other European may also be targeted. Earlier, the president tweeted his intention to slap duties on Brazil and Argentina, which are selling soya beans to China.

US-Sino relations: Beijing is contemplating preparing a list of "unreliable entities" that would suffer sanctions. That comes in response to American sanctions on human rights abuses in Xinjiang. White House adviser Kellyanne Conway said that the agreement with China is being written, but Commerce Secretary Wilbur Ross threatened to slap new levies on China if no deal is reached.

The US dollar is consolidating its losses, caused mostly by ISM's weak Purchasing Managers' Index figures for the manufacturing sector. The score of 48.1 reflects ongoing contraction and triggered fears about the global economy.

AUD/USD has extended its gains after the Reserve Bank of Australia painted a more optimistic picture of the global economy and seems hesitant regarding cutting interest rates.

EUR/USD is holding onto its advance on Monday. Christine Lagarde, the new President of the European Central Bank, said that the bank's review of its monetary policy will include considering the climate, and will also view inflation as symmetrical. The euro was supported as she did not offer dovish views. Several ECB members will speak later today.

GBP/USD has been a relative laggard, as the election campaign rages on. Labour has narrowed the gap with the Conservatives, but Prime Minister Boris Johnson's party is still on course to a victory. Trump's visit to the UK for the NATO summit is at the center of the agenda.

Cryptocurrencies have stabilized with Bitcoin trading around $7,300.

More US-China trade situation has the power to upset all markets

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Australia CPI to highlight persistent price pressures, backing a hawkish outlook

Australia will release its key set of inflation figures for the month of January on Wednesday, with the Consumer Price Index expected to rise by 3.7%, slightly lower than the 3.8% in the last month of 2025.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.