“Larger dollar moves are likely to come to the upside if the tariffs are actually put in place,” Goldman Sachs strategists wrote in a note, adding that markets are vulnerable to “day 1 disappointment” if the tariff deadline is pushed back.
The dollar rallied to cap off its best week since mid-November on President Donald Trump’s vow to unleash a first wave of tariffs on US trading partners on Saturday.
The Bloomberg Dollar Spot Index rode a five-day rally to a weekly gain of nearly 1%, while the Mexican peso and the Canadian dollar each slumped. Trump on Friday reiterated his plan to slap a 25% tariff on products from the US's neighbours.
