Week Ahead: Does The Dollar Still Have Legs After The Tariff Ruling?

Marc Chandler17.13K FollowersFollow5ShareSavePlay(18min)CommentsSummaryThe dollar still seems to be caught up in a corrective/consolidative technical phase that was threatened by the Supreme Court decision, which was as most expected.The euro seems less sensitive to interest rate changes and economic data and more caught in a technical correction after the strong run-up in late January amid the tensions over Greenland.Weaker labor earnings and a softer labor market, while price pressures moderated, weighed on sterling in the firm US dollar environment.The Canadian dollar is less sensitive to interest rate changes, as it too seems to continue to be in a technical corrective phase.Commodity exposure and monetary policy divergence helped lift the Australian dollar to its highest level in three years earlier this month. J Studios/DigitalVision via Getty Images The Supreme Court struck down President Trump's use of emergency powers to impose widespread tariffs. The court did not rule on refunds. Trump quickly announced a 10% across-the-board tariff under Section 122 of the 1974 Trade Act, whichThis article was written byMarc Chandler17.13K FollowersFollowMarc Chandler has been covering the global capital markets in one fashion or another for 25 years, working at economic consulting firms and global investment banks. A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes. Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsense