Currency markets kicked off 2025 with a bang, as shifting U.S. trade policy expectations, unexpected political developments, and a wave of economic data threw rate cut expectations into query.

Global risk sentiment seesawed throughout the week, fueled by Trump’s tariff drama, U.K. fiscal jitters, and China’s deflation worries, keeping volatility high and central banks on alert.

We’re breaking down what influenced the main currencies’ price motion this week:

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