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FX Trends: FX eyes on US trade policy developments

27 January 2025

Key takeaways

  • FX markets will wait for clarity on US President Trump’s trade policy, possibly experiencing heightened volatility over the coming weeks…
  • … but markets should look through the noise, with the USD probably retaining its allure
  • The EUR and GBP may languish, while the CAD could be exposed to US tariff threat

Our tactical view

Table of tactical views where a currency pair is referenced (e.g. USD/JPY):An up (⬆) / down (⬇) / sideways (➡) arrow indicates that the first currency quotedin the pair is expected by HSBC Global Research to appreciate/depreciate/track sideways against the second currency quoted over the coming weeks. For example, an up arrow against EUR/USD means that the EUR is expected to appreciate against the USD over the coming weeks. The arrows under the “current” represent our current views, while those under “previous” represent our views in the last month’s report.

Note: ^DXY = US Dollar Index, is an index (or measure) of the value of the USD against major global currencies, including the EUR, JPY, GBP,CAD, SEK and CHF. Source: HSBC

FX Data Snapshot

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