Trump's Reciprocal Tariffs Weigh on USD Mostly Lower as EUR Rises Amid Ukraine War Prospects

Former President Donald Trump is set to announce reciprocal tariffs, impacting various currencies in the foreign exchange market. Following the announcement, the U.S. dollar (USD) has mostly declined, influenced by dropping U.S. yields. In contrast, the euro (EUR) has risen due to expectations surrounding the end of the Ukraine war. Other currencies also reflect mixed movements, with the British pound (GBP) gaining strength from improved GDP and industrial production figures, while the Japanese yen (JPY) has seen a slight retreat as U.S. yields stabilize. The Canadian dollar (CAD) has reached a two-month high, buoyed by stronger economic data, while the New Zealand dollar (NZD) has risen on positive business PMI figures. The Australian dollar (AUD) has faced downward pressure due to cyclone threats affecting port operations. As the market digests these developments, attention remains focused on Trump's tariff plans and upcoming U.S. retail sales data.