Impact effect? Risk-off, and lower Treasury yields. No break of prior ranges on market rates, but it smells like they want to go lower ahead. Overall, it feels like this could unravel further in a negative fashion.
GBP/USD surged to six-month highs on Wednesday as the Trump administration’s new tariffs were less severe than expected, easing investor fears after weeks of aggressive trade threats.
On Wednesday's American session, the Australian Dollar pulled back after a brief spike to multi-day highs, with the AUD/USD pair slipping back under the 0.6300 threshold.
Stocks were in risk on mode today, rallying for much of the day, squeezing the shorts who had taken defensive positions ahead of Donald's pronouncements on tariffs.
Silver is up more than gold – outperforming it on an immediate-term basis. At the same time, miners are down. This is a classic short-term sell signal.
Investors may turn to the Japanese Yen amid uncertainties over “Liberation Day”. USDJPY has been consolidating in a symmetrical triangle since August 2024
If the tariffs are perceived as globally disruptive but relatively soft on Canada, that could ironically bolster CAD by reducing uncertainty and supporting risk sentiment.
The trepidation over today's US tariff announcement has been underscored by reports that even as late as yesterday, a final decision had not been made.
The EUR/USD pair continues its gradual decline, erasing its recent technical rebound and retreating to 1.0795. Traders remain cautious as key economic and political developments loom.
President Trump will today announce the imposition of new tariffs, with the details being keenly awaited by markets and likely to cause significant volatility.
High-beta currencies have rallied overnight, perhaps indicating that the US will opt for a flat rate over country-specific tariffs, which could be seen as slightly more lenient.
