Currency markets remain volatile
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Daily Currency Update
Currency markets continue to take direction over the impact and outlook of President Donald Trump’s tariffs. A trade war is looking likely with China vowing to fight to the end if Trump moves ahead with his additional levies on the country. The tariff latest has completely overshadowed macroeconomic data which only saw low impact releases yesterday and the same is expected today.GBP/USD is back down to 1.2750 after touching 1.3200 last Thursday. EUR/USD has dipped below 1.0950 after breaking 1.1100 last week and GBP/EUR has fallen below 1.1700 from 1.2000. We have seen significant moves in the past couple weeks, outside and beyond the normal moving patterns for these major currencies, and for now it shows no signs of calming. As countries now begin to adapt to the tariffs, central bank decisions on the future come into focus.
Key Movers
U.S. Trade Representative, Jamieson Greer, is due to tell the Senate Finance Committee today that he has been approached by almost 50 countries asking to discuss Trump’s sweeping tariffs. The statement is set to come as markets are still attempting to understand if the Trump administration plans to impose the tariffs permanently or use them as a tool in the negotiations with trading partners. Media reports suggest countries such as Argentina, Vietnam, and Israel, have suggested they will bring down their tariffs and non-tariff barriers.Expected Ranges
- GBP/USD: 1.2620 - 1.2780 ▼
- GBP/EUR: 1.1610 - 1.1720 ▼
- GBP/AUD: 2.0850 - 1.1280 ▼
- EUR/USD: 1.0860 - 1.0990 ▼