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Market Brief, North America

Price Action Slows in Run-Up to Rate Decisions

The dollar is advancing against most of its peers and financial markets are broadly holding steady ahead of this afternoon’s Federal Reserve decision. The world’s most powerful central bank is almost-universally expected to stay on hold—and the accompanying statement should remain essentially unchanged—but Chair Jerome Powell’s words in the post-decision press conference will be closely scrutinised for hints as to whether a rate cut could come at the March meeting. Yields have retreated from their recent highs, driven by a modest softening in incoming survey data, market turmoil, relatively-dovish rhetoric from Fed officials, and a rush among investors to top-tick...

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Renewed Tariff Threats Clobber Currency Markets

The dollar is back on the offensive after Donald Trump last night said he favours implementing universal tariffs “much bigger” than 2.5 percent. Speaking to reporters aboard Air Force One, the president appeared to double down on threats against auto manufacturers in Canada and Mexico, and said the US would soon hit pharmaceuticals, chips, semiconductors, steel, copper, and a range of other categories with import taxes. An earlier report from the Financial Times suggested that newly-confirmed US Treasury Secretary Scott Bessent supports applying an initial 2.5-percent tariff against all US trading partners, with an increase in the same amount coming...

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Dollar Retreat Gains Momentum on Tech Sector Plunge

Futures on US stock markets are tumbling this morning as outsized performance gains from China’s DeepSeek artificial intelligence start-up raise uncomfortable questions about the competitive moats surrounding America’s biggest tech firms. According to artificial intelligence experts, a thinly-resourced open-source large language model released by the Chinese company last week shows comparable performance to those built by US firms like OpenAI and Meta, suggesting that the race among Silicon Valley firms to invest tens of billions of dollars in advanced chips may not pay off—at least not for those on the vanguard. DeepSeek’s chatbot topped downloads on Apple’s App Store over...

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Easing US-China Tensions Boost Risk Appetite

Financial markets are back in risk-on mode after US President Donald Trump appeared to suggest that he could avoid putting tariffs on Chinese imports, backing off a campaign pledge to hit the country with a 60-percent levy. In a previously-recorded interview with Fox News that aired in the United States last night, Trump said “We have one very big power over China, and that’s tariffs, and they don’t want them. And I’d rather not have to use it, but it’s a tremendous power over China,” also noting that he had a “great relationship” with Chinese president Xi Jinping prior to...

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Calm After the Storm Settles on Currency Markets

Financial markets are enjoying a period of placidity amid a relative lack of new headline risks related to the incoming administration’s trade, immigration, and fiscal policy plans. The global borrowing cost benchmark—the ten-year US Treasury yield—is holding near 4.62 percent, down from last week’s flirtation with the 4.8-percent threshold, equity futures are inching higher, and the dollar is eking out small gains after President Trump generally avoided discussing the economy and stopped short of issuing new tariff threats in a closely-watched interview with Fox News last night. US labour markets showed signs of stabilising in recent weeks. According to data...

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