US dollar whipsaws as Trump signs flurry of executive orders
Philip McHugh January 22nd 2025 - 2 minute read

Pound (GBP) softens following mixed jobs data
The pound (GBP) trended lower during yesterday’s session following a mixed labour market report for the three months to November.
Although British wage growth accelerated, as forecast, the UK unemployment rate unexpectedly rose from 4.3% to 4.4%, raising concerns about the fragile health of the country’s economy.
Turning to today, UK economic data is in short supply. As a result, movement in Sterling may be limited.
Euro (EUR) buoyed despite weak German data
The euro (EUR) managed to rise against its weaker rivals yesterday, despite a sharper-than-expected deterioration in German economic sentiment this month.
The limited upside came as cautious investors opted for the safer single currency rather than its riskier peers.
This afternoon, European Central Bank (ECB) President Christine Lagarde is due to speak. Any hints that more interest rate cuts are on the way could dent EUR exchange rates.
US dollar (USD) fluctuates amid Trump’s policy blitz
The US dollar (USD) witnessed notable volatility yesterday, initially rising higher before retreating in the afternoon.
The turbulence came as Donald Trump signed a flurry of executive orders on his first day as US President.
All eyes remain on the Oval Office today, as Trump could continue to make waves with any further executive orders.
Canadian dollar (CAD) wavers following inflation data
The Canadian dollar (CAD) also faced choppy trad yesterday following Canada’s latest inflation figures. While headline inflation unexpectedly eased, core inflation surprised markets by ticking higher.
Worries about incoming US tariffs on Canada could pressure CAD today. Oil price movements may also impact the crude-linked ‘loonie’.
Australian dollar (AUD) muted as turbulence dies down
The risk-sensitive Australian dollar (AUD) was subdued overnight as the market volatility following Trump’s first day in office seemed to settle.
New Zealand dollar (NZD) falls following inflation data
The New Zealand dollar (NZD) weakened overnight after New Zealand’s fourth-quarter inflation rate held at 2.2%, well within the Reserve Bank of New Zealand’s (RBNZ) target range of 1% to 3%.
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Written by
Philip McHugh