US Dollar Weakens Following Tariff Pause Announcement.
US Dollar Weakens Following Tariff Pause Announcement.
The US dollar experienced a decline in the early hours of Thursday after President Donald Trump announced a 90-day pause on certain trade tariffs.
This decision led to a "relief rally" among global traders, easing immediate trade tensions.
The euro rebounded above the 1.0600 level as traders reacted to the economic data from the U.S. In the EU, traders focused on the inflation data from the Eurozone.
Euro Area Inflation Rate declined from 10.1% in November to 9.2% in December, compared to analyst consensus of 9.7%.
Core Inflation Rate increased from 5% to 5.2%, suggesting that the European Central Bank (ECB) will likely maintain a hawkish stance, which is bullish for the euro.
While specific details on USD/JPY and AUD/USD movements were not provided, it's reasonable to infer that these pairs experienced fluctuations in response to the US dollar's weakening.
