Skip to content
Risk warning: Our products are leveraged and carry a high level of risk, which can result in the loss of your entire capital. Such products may not be suitable for all investors. It is crucial to understand the risks involved fully.
  • Support
  • For Institutionals
  • Trading

    Trading Platforms

    • MetaTrader 4 Terminal
    • MetaTrader 5 Terminal
    • PAMM Accounts
    • Equinix Trading Server

    Markets coverage

    • Forex Currencies
    • Spot Metals
    • Commodities

     

    • CFDs on Stocks
    • Indices
    • CFDs on Crypto

    Start Trading

    • Standard Accounts For individuals
    • Institutional Account For professionals
    • Deposits & Withdrawals
  • Conditions

    Trading Conditions

    • Spreads Overview
    • Swap-Free
    • Leverage Information

     

    • CFD Specifications
    • Full Trading Conditions

    Invest on your terms

    Transparent pricing, reduced trading costs, and leverage that adapts to your strategy.

    Explore conditions
  • Tools
    • Weekly Outlook
    • Daily Technical
    • Market Commentary
    • Economic Calendar
    • News & Insights
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
  • Trading
    • Markets Coverage
    • MetaTrader 5 Platform
    • MetaTrader 4 Platform
    • Standard Accounts
    • Institutional Account
    • PAMM Accounts
    • Equinix Trading Server
    • Deposits & Withdrawals
  • Conditions
    • Spreads Overview
    • Leverage Information
    • Swap-Free Trading
    • CFD Specifications
    • Full Trading Conditions
  • Tools
    • Daily Technical
    • Weekly Outlook
    • Market Commentary
    • Economic Calendar
    • News & Insights
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
  • Client Portal
  • Open Account
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
Open Account
Client Portal
Currencies, Markets

Dollar Gains Ground Amid Tariff Concerns, Euro Looks Toward ECB Meeting

January 27, 2025 OnEquity

The US dollar gained on Monday, recovering from recent losses as attention turned back to the potential for trade tariffs under the Trump administration at the start of a week in which the Federal Reserve is set to hold its monetary policy meeting.

The dollar index, which analyzes the behavior of the greenback in comparison with a basket of six other currencies, rose by around 0.1% to 107.310, having fallen by more than 1% this week.

The Threat of Tariffs Boosts the Dollar

Last week, the dollar posted its weakest performance since November 2023, as Donald Trump appeared to temper the risk of trade tariffs, prompting traders to reduce the risk premium embedded in the currencies of major US trading partners.

However, these concerns resurfaced after the United States successfully leveraged the threat of import tariffs against Colombia to achieve its political objective of returning illegal immigrants.

“The use of tariffs as political leverage is now well understood by the market, and it may be worth reducing marginal volatility,” analysts at ING said in a note. “That said, the currency market is still operating under the shadow of a potential February 1st deadline for tariffs against Mexico, Canada, and China, which may limit the dollar’s downside this week.”

Expectations of high tariffs on products from key trading partners—including Canada, Mexico, China, and the eurozone—have renewed concerns about inflation, providing upward momentum for the dollar.

The Federal Reserve will conclude its latest two-day monetary policy meeting on Wednesday, and it is widely expected to leave interest rates unchanged.

Euro Falls Ahead of ECB Meeting

In Europe, the EUR/USD pair rose 0.1% to 1.0489 after a surprise improvement in German business morale in January, driven by a more optimistic assessment of the current economic situation, according to a survey released on Monday.

The Ifo Institute reported that its business climate index increased to 85.1 in January from 84.7 in December, while the current conditions index rose to 86.1 from the previous month’s 85.1.

This follows an improvement in eurozone activity data reported the previous week, suggesting the region’s economy is gradually improving.

However, the European Central Bank (ECB) is expected to cut interest rates once again at its upcoming meeting. Traders are awaiting further signals from ECB President Christine Lagarde, which could influence expectations for the three additional rate cuts projected for this year, following Thursday’s anticipated move.

“The EUR/USD pair is likely to remain in a range of 1.0400–1.0500 in the short term, with the next catalysts for a move being the FOMC and ECB meetings on Wednesday and Thursday, respectively,” ING stated.

Meanwhile, the GBP/USD pair traded 0.1% lower at 1.2460, with the pound showing signs of weakness ahead of the next Bank of England (BoE) meeting in early February.

“We believe there are valid reasons for GBP/USD to trade at 1.19–1.20 by the end of this year, as the BoE accelerates its easing cycle and the Chancellor may need to introduce further fiscal adjustments later this year,” ING added.

Yuan Falls After Weak Chinese PMI Data

In Asia, USD/JPY declined 0.6% to 154.76, with the yen gaining support from the Bank of Japan’s (BoJ) interest rate hike the previous week. The BoJ also signaled plans for additional rate increases in the coming months if its economic outlook aligns with current estimates.

The USD/CNY pair rose 0.2% to 7.2603 after China’s manufacturing activity unexpectedly contracted in January, as Beijing’s recent stimulus measures provided only modest support to local businesses.

Simultaneously, growth in the non-manufacturing sector slowed significantly during the month, with local companies grappling with uncertainty over the potential for increased US trade tariffs.

  • Currencies
  • Dollar
  • Euro
  • Yuan

Post navigation

Previous
Next

Search

Categories

  • Analysis (219)
  • Beginner (24)
  • Cryptos (146)
  • Currencies (189)
  • Daily Technical (147)
  • Education (64)
  • Expert (23)
  • Intermediate (17)
  • Markets (438)
  • News & Releases (22)
  • Stocks (292)
  • Uncategorized (1)
  • Weekly Outlook (70)

Recent posts

  • Trump May Sign Executive Order Targeting Banks That Discriminate Against Crypto Firms
  • Fundamental Analysis of European and U.S. Stock Markets – August 5, 2025
  • Today’s stocks to watch: AMD, Palantir, and Super Micro

Tags

Analysis Bitcoin Cardano CPI Crypto Cryptocurrencies Currencies Daily Dollar earnings Education Elections ETF ETFs Ethereum Euro Fed Index inflation Litecoin Market Markets Nasdaq oil Outlook Pound Ripple SEC Solana Stablecoin Stock Market Stocks Stocks Market Stocks today Technical Technical Analysis Technology Tether Trading Trump Wall Street Weekly Weekly Outlook Yen Yuan

Related posts

Currencies, Markets

Dollar stabilizes after sharp losses triggered by employment data

August 5, 2025 Carlos Sereno

The U.S. dollar stabilized on Tuesday, recovering slightly after recent losses driven by weaker-than-expected payroll data, as investors reassessed the outlook for Federal Reserve rate cuts amid signs of a slowing economy. As of 04:15 ET (08:15 GMT), the U.S. Dollar Index, which measures the greenback against a basket of six major currencies, rose 0.2% […]

Currencies, Markets

Dollar falls sharply after poor employment data; will the Fed cut rates next month?

August 4, 2025 Carlos Sereno

The U.S. dollar continued its decline on Monday, extending Friday’s sharp losses following a disappointing U.S. labor market report that bolstered expectations for early Federal Reserve rate cuts. At 04:20 ET (08:20 GMT), the U.S. Dollar Index—measuring the greenback against six major currencies—fell 0.2% to 98.722, after dropping more than 1% on Friday. Friday’s report […]

Analysis, Daily Technical

Daily Technical Analysis EUR/USD: Surge Slows at Multi-Year Highs — Tax Reform and Yields Bring Gains to a Stop

July 2, 2025 OnEquity

The EUR/USD pair remained flat during Wednesday’s session, hovering around 1.1780 after briefly touching a multi-year high of 1.1830. The euro’s advance lost steam following the U.S. Senate’s approval of President Trump’s $3.3 trillion “One Big Beautiful Bill,” which includes the entirety of his legislative agenda. The bill, passed by a 51–50 margin with Vice […]

  • Privacy policy
  • Client agreement
  • Legal
  • Support
  • +2484671965
  • [email protected]
  • Chat with us
Company
  • About us
  • Regulation
  • Safety of funds
  • Company news
  • Insights
  • FAQ
Account options
  • Standard accounts
  • Institutional account
  • PAMM accounts
  • Swap-free account
Conditions
  • Spreads overview
  • Leverage tiers
  • CFD specifications
  • Markets coverage
Trading tools
  • MetaTrader 5
  • MetaTrader 4
  • Equinix trading server
  • Economic calendar
  • Daily technical
  • Weekly outlook
  • Market commentary
OnEquity Ltd is incorporated in Seychelles as a Securities Dealer with License No. SD154, authorized by the Seychelles Financial Services Authority (FSA), adhering to the Consolidated Securities Act, 2007. Registration No. 810588-1.

The website is operated and provides content by the OnEquity group of companies, which include:

OnEquity SA (Pty) Ltd, incorporated in South Africa, Company reg. 2021/321834/07, regulated by the Financial Sector Conduct Authority (FSCA) with FSP No. 53187.

OnEquity LLC, recognized by the Registrar of International Business Companies and the Financial Services Authority in St. Vincent and the Grenadines, Registration No. 286 LLC 2020.

ONEQ Global Ltd, registered in Cyprus, Company reg. HE 435383, located at Agias Zonis 22, Limassol, focusing on comprehensive service solutions within the OnEquity Group.
Risk Disclosure: Trading in financial instruments involves substantial risk and may not be suitable for all investors. The value of investments is volatile and can result in total loss of capital. Investors should consider their financial situation, investment experience, and risk tolerance, and may seek professional advice. Past performance is not indicative of future results.

Eligibility: Services are available to individuals 18 years or older.

Restricted Jurisdictions: The content provided by OnEquity is not intended for residents of the United States, Canada, North Korea, Yemen, Iran, Belgium, Syria, or any jurisdiction where such distribution or use would be contrary to local law or regulation.

All trademarks™ and brand names belong to their respective owners and are used here for identification purposes only. Use of these names does not imply endorsement.
© OnEquity. All Rights Reserved.