The U.S. dollar surged against neighboring currencies after President Trump said he plans to place 25% tariffs on imports from Canada and Mexico on Feb. 1, but there was some relief in Asian markets as investors adjusted to the new administrationβs policy priorities.
Oil was trading lower and Commerzbank Research said its rally after the latest round of U.S. sanctions on Russiaβs energy sector should make Trump cautious about implementing additional restrictions.
Treasury yields fell in European trading and have the scope to decline further once more clarity on President Trumpβs policies emerges, Danske Bank Research said.
Amid a surge in open interest in precious metals futures, front-month gold futures settled up 0.4% to $2,755 an ounce, the third-highest close in history.
U.S. tocks climbed following Donald Trumpβs return to the Oval Office after promising reports about several companies and no immediate announcement from the White House about tariffs.
European natural-gas prices fell, with an expected flurry of executive orders following Trumpβs inauguration potentially including the lifting of a moratorium on new permits to export liquefied natural gas.
Yields on gilts climbed ahead of U.K. labor market data due Tuesday, and XTV said rising wage data, if confirmed, could weigh on BOE rate-cut expectations.
Gold futures were broadly flat as the dollar softened, with investors seeking clarity on potential Trump policies that could affect inflation trends, Tickmill said.
The dollarβs sudden drop on a Wall Street Journal report that Trump is unlikely to implement immediate tariffs shows just how sensitive the currency is to tariff news, Ballinger said.