Forex Today: Markets Cautious as Trump’s Tariff Letters Rattle Global Sentiment

Forex Today: Markets Cautious as Trump’s Tariff Letters Rattle Global Sentiment

Thursday, July 10 — Forex traders kicked off the session in risk-off mode as markets remain rattled by a fresh round of tariff letters from US President Donald Trump, intensifying global trade concerns. Investors are reducing exposure to risk-sensitive assets, leading to choppy price action across major currency pairs.

Trump's Tariffs Keep Traders on Edge

The latest escalation in US trade policy includes detailed tariff demands targeting over 20 countries, increasing uncertainty around global growth and inflation forecasts. These evolving trade dynamics are reshaping currency flows and clouding the outlook for emerging market currencies.

US Jobless Claims, Fed Comments in Focus

Later in the day, the spotlight will shift to the US Weekly Initial Jobless Claims, which serve as a key indicator of labor market health. Investors will also closely monitor remarks from Federal Reserve officials, including Alberto Musalem, Christopher Waller, and Mary Daly, for clues about the central bank’s next move.

Currencies in Play

• USD remains broadly steady, with the US Dollar Index (DXY) holding near recent highs.
• JPY and CHF gain slight safe-haven support.
• AUD, NZD, and CAD weaken amid declining risk appetite.