The dollar rises again after Trump's threats of tariffs

The reasons for the dollar's movements today and what are the most important data expected this week

The US dollar rose on Monday after new threats of tariffs from US President Donald Trump, which cast a shadow on commodity markets and put pressure on the euro, yen, as well as the Australian and Canadian.

Trump said that he will announce new 25% tariffs on all steel and aluminum imports to the United States later today, in addition to reciprocal tariffs on Tuesday or Wednesday that will be applied to all countries and match the tariff rates imposed by each country, and Chinese retaliatory tariffs on American goods are scheduled to take effect on Monday.

The markets will be volatile as this trade war escalates and investors need to move cautiously at the moment and prepare for further market turmoil.

EURUSD

The euro-dollar fell by 0.2% as it reached the levels of 1.0300 dollars, remaining close to its lowest level in more than two years at 1.0125 dollars, which it touched last week as Europe prepares for the tariffs that Trump has repeatedly threatened against them.

AUDUSD

The Australian dollar fell at the beginning of today's trading and rose slightly after that, but it remains trading near its five-year low, which it touched last week.

USDJPY

The Japanese yen fell almost 0.5% today, but it is still close to the one-month high that it touched on Friday amid growing expectations that the Bank of Japan will raise interest rates this year.

USDCAD

The Canadian dollar fell by about 0.3% as Canada is the largest supplier of aluminum metal to the United States.

Apart from Trump, the focus of investors this week will be on the US inflation data to be released next Wednesday, as well as the appearance of Fed Chairman Jerome Powell before the House of Representatives on Tuesday and Wednesday.

Expectations are that these tariffs could be inflationary and put more pressure on the Fed to keep interest rates high, with markets now pricing in a 36 basis point cut this year, down from 42 basis points after last Friday's upbeat payroll report.