BUZZ-COMMENT-Dollar dips remain a fade given tariff threats

Feb 13 (Reuters) - Despite the hotter than expected U.S. CPI data, headlines that U.S. President Donald Trump had a positive and constructive call with his Russian counterpart, Vladimir Putin, further increased speculation surrounding a Russia-Ukraine peace plan.

Consequently, the kneejerk move higher in the dollar was quickly pared. Though once again, the choppy price action speaks to the fact that conviction among traders is lacking.

While the dollar has seen a slight setback on the most recent geopolitical headlines, questions over the timing of a peace plan are still unknown. This will likely limit near-term upside in European FX, particularly as this may be more a case of kickstarting negotiations to eventually reach a deal, which may well be a long and drawn-out process.

Aside from the geopolitics, tariff threats still lean towards dollar strength. President Trump looks set to announce reciprocal tariffs later today, which should see a preference to fade dollar dips.

For more click on FXBUZ