The US dollar traded mixed at the start of the week, continuing its downward trend in the New York session on Tuesday after recovering slightly in the previous session.
The market situation is cautious due to the uncertainty of tariffs by President Donald Trump that will be implemented.
Trump announced on Tuesday that his administration is discussing imposing a 10% tariff on imported goods from China on February 1.
In addition, Trump is considering imposing a 25% tariff on Canadian and Mexican imports.
He also stated the possibility of universal tariff implementation but felt that the United States (US) is not yet fully ready.
Investors are looking at the UK jobs report published in the European session yesterday with concerns over the increase in the unemployment rate to 4.4% in November last year.
In the New York session, Canadian inflation data recorded a decline for December, with annual inflation falling to 1.8% from 1.9% the previous month.
The Canadian dollar, however, showed positive movement against the US dollar in the New York session yesterday.
The current risk-on market sentiment has pushed the US dollar to move lower for a while but any supporting factors could trigger a re-strengthening.
Any further updates on tariff developments from President Trump will be the driver of further market movement.
