Observing the opening of trading early yesterday, the US dollar started weak in the early session before showing renewed strength as it moved into the subsequent sessions.
Supporting the positive movement of the US dollar after this when the statement delivered by President Donald Trump at the White House early this morning which again increased concerns in the market.
After announcing a 30-day postponement earlier, Trump said that the import tariffs on Canada and Mexico will continue in March.
Trump received a visit from French President Emmanuel Macron at the White House with the situation seen to be quite tense when discussing the Russia-Ukraine conflict.
President Macron disagreed with Trump on several important issues after 3 years of the war between Russia and Ukraine since 2022.
Macron stated that Russia is clearly the aggressor in this conflict, while Trump did not want to say that Russian President Vladimir Putin is a dictator after he last week said that Ukrainian President Volodymyr Zelenskiy is a dictator.
However, both leaders agreed to find a way for peace to happen as soon as possible.
In the New York session today (Tuesday), investors will assess US consumer confidence data which could influence further movements in the US dollar before turning their attention to the US economic growth report on Thursday.
The euro traded weak after reaching a fresh 4-week high as investors watched developments in the German election.
In addition to European currencies, Asian currencies also showed a retreat with the Aussie dollar trading cautiously ahead of the Australian inflation report on Wednesday.
Meanwhile, the Yen showed early signs of weakening after several days of strong moves against the US dollar.
