# Dollar Slumps as Risk-On Mood Prevails Under Trump’s First Week - ActionForex

> The dollar ended its first week under Trump as the worst-performing major currency amid risk-on sentiment. Investors had expected aggressive tariffs, but Trump took a softer tone, and the Canadian loonie fell on concerns about tariffs on Canadian exports.

- Date: 2025-01-26 · published 2025-01-26T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/12677-dollar-slumps-as-risk-on-mood-prevails-under-trump-s-first-week-actionforex
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Reduced tariff fears support equities and growth assets while weighing on the dollar, which tends to lift dollar-priced feed commodities. Continued tariff threats against Canada could pressure Canadian export flows.

## Read by commodity

- DXY: bearish ▼
- USDCAD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2025-01-24 | 5 | -1.5% | -2.8 | Describes the dollar as the worst-performing major currency in Trump's first week as risk-on sentiment and softer tariff tone cut safe-haven demand. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-09-23 | [Dollar slumps as risk appetite rebounds](https://feedsoft.ai/events/44962-dollar-slumps-as-risk-appetite-rebounds.md) | +1.0% | -0.0% |
| DXY | 2019-10-31 | [Yen Jumps on Renewed US-China Trade Concerns, Dollar Extends Post FOMC Selloff - ActionForex](https://feedsoft.ai/events/56808-yen-jumps-on-renewed-us-china-trade-concerns-dollar-extends-post-fomc-selloff.md) | -0.1% | +0.8% |
| DXY | 2017-07-31 | [Pound hits 10-month high of $1.32 on dollar's Trump slump](https://feedsoft.ai/events/70203-pound-hits-10-month-high-of-1-32-on-dollar-s-trump-slump.md) | +0.3% | -0.5% |
| DXY | 2026-01-26 | [Dollar under fire again as investors reassess Trump policies, geopolitical risk \| Reuters](https://feedsoft.ai/events/10158-dollar-under-fire-again-as-investors-reassess-trump-policies-geopolitical-risk.md) | -0.8% | -0.8% |
| DXY | 2020-08-30 | [Dollar Dived on New Fed Strategy, Aussie Shone ahead of a Key Week - ActionForex](https://feedsoft.ai/events/51895-dollar-dived-on-new-fed-strategy-aussie-shone-ahead-of-a-key-week-actionforex.md) | +0.1% | +1.4% |

## Sources

- actionforex.com: https://www.actionforex.com/action-insight/market-overview/weekly-report/583971-dollar-slumps-as-risk-on-mood-prevails-under-trumps-first-week/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.