FX Weekly: Dollar on the up as tariffs loom

The dollar looks set to come out on top against most currencies after a week of central bank meetings, corporate earnings and economic data generally shifted yield gaps in its favour and reinforced US exceptionalism. But it is US trade policy that has again stolen the headlines. It is unclear what tariffs, if any, will be announced this weekend; but what seems clearer is that it will not stop here. We think trade policy will continue to steer currency markets over the coming months and that, ultimately, these policies will boost the dollar when they materialise.