Commodity-Linked Currencies Decline as Trump Signals More Tariffs Amid Rising Trade Tensions

U.S. President Donald Trump’s pledge to impose tariffs on all steel and aluminum imports
has triggered a wave of declines in commodity-linked currencies.
The Australian dollar and the Canadian dollar both fell amid global market risk aversion.

Topic
Stocks
Oil
Trump

Stocks

In the stock markets, Asian indices recorded their largest weekly decline,
while Chinese and Hong Kong stocks saw notable gains.
Meanwhile, in the commodities sector, iron ore prices rose,
and gold approached record levels as investors shifted toward safe-haven assets.

These market movements come as traders anticipate a 25% tariff on steel and aluminum,
adding to uncertainty ahead of Federal Reserve Chair Jerome Powell’s testimony before Congress this week.
Additionally, Trump is expected to expand tariff measures to include all countries,
though no specific timeline has been provided.

Oil

Oil prices saw a slight recovery following a series of weekly declines,
as markets continue to assess the impact of U.S. tariffs on the energy sector.
Brent crude stabilized near $75 per barrel after posting its third consecutive weekly decline,
while WTI crude surpassed $71 per barrel.

This recovery comes as China prepares to retaliate against U.S. tariffs,
announcing that it will impose countermeasures on American goods starting Monday—
further escalating trade tensions between the world’s two largest economies.

Trump

On Sunday, Trump hinted at broader tariffs on aluminum and steel,
potentially impacting the U.S. energy sector, particularly oil exploration companies reliant on specific steel types not produced domestically.

Since mid-January, oil prices have faced increasing pressure due to weaker global demand forecasts and Trump’s trade policies,
shaking investor confidence.
Market indicators, such as time spreads in futures contracts, suggest growing concerns about near-term supply increases.

At the same time, speculators have ramped up bearish bets on U.S. crude at the fastest pace since October,
with net long positions in WTI contracts declining for the second consecutive week,
while a five-week winning streak in Brent speculative positions has come to an end.

These movements reflect ongoing global market uncertainty,
as Trump’s trade policies continue to shape commodity prices, currencies, and financial markets.
The coming period will be crucial in monitoring U.S.-China trade developments and their impact on the global economy.

Commodity-Linked Currencies Decline as Trump Signals More Tariffs

Commodity-Linked Currencies Decline as Trump Signals More Tariffs

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