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27 Jan 2026

USD slide continues

• Weaker USD. US equities rose again while the USD remains under pressure. EUR at a multi-year high. AUD touched highest point since Q1 2023.• Macro trends. Q4 Australian CPI out today. Will it help or hinder RBA rate hike expectations? US Fed meets tomorrow. No changes anticipated. Global Trends A few of the recent major market themes continued overnight with European/US equities rising and the USD remaining under downward pressure. More specifically, the US S&P500 (+0.5%) reached a record high while the tech-focused NASDAQ jumped up 0.9% to be within a whisker of its historic peak. US bond yields...

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Dollar plunges as Trump downplays recent weakness

The dollar is tumbling through technical barriers across most major currency pairs after US president Donald Trump told reporters “I could have it go up or down like a yo-yo,” and that he’s not concerned about its recent decline, saying “Look at the business we’re doing. The dollar’s doing great”. “If you look at China and Japan, I used to fight like hell with them, because they always wanted to devalue,” he said, but “it’s hard to compete when they devalue”. The president’s comments suggest that recent (rumoured) moves to support Japanese currency intervention—intended to raise the value of the...

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Currency markets calm, but remain dollar bearish

Foreign exchange markets are enjoying a brief period of respite, with most major pairs showing signs of mean reversion after the weekend’s sharp moves. The dollar is edging higher and measures of currency volatility are easing, even after President Trump issued fresh tariff threats against South Korea following similar warnings to Canada and Europe last week. Few expect the threats to be carried out, and many think the Supreme Court will place limits on such unilateral actions within the next month. Yield curves in Canada and the US are holding firm ahead of tomorrow’s central bank decisions, suggesting that investors...

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