USD weaker on Trump tariffs
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Daily Currency Update
US President Donald Trump said yesterday that he will proceed with plans to impose tariffs of energy and other imports from Canada, Mexico and China. The move is expected to see retaliatory measures from the opposing countries as markets now prepare for a potential global trade war. U.S. Commerce Secretary Howard Lutnick confirmed yesterday that a tariff compromise is probable, but the stance from Trump is he wishes to see a levelling to the unfair trading practices. The US dollar has weakened on the news as many are looking at the damage this could do to the US economy, which in turn could cause interest rate to come down faster than expected.GBP/USD has jumped back above 1.2800 this morning and falls just shy of 1.2850. The Euro has advanced to 1.0700 against the US dollar, which is a significant gain as the currency pair weas under 1.0500 at the start of yesterday. GBP/EUR has broken its recent ranges and now sits below 1.2000.
Key Movers
Ahead of the EU interest rate announcement tomorrow, news from Germany has supported the EUR. German Chancellor, Friedrich Merz had agreed with coalition partners to remove the country’s “debt brake” which puts strict limits on how much the government can borrow. This will enable Germany to boost spending on defence and infrastructure over the next decade, which could total several hundred billion Euros.Expected Ranges
- GBP/USD: 1.2620 - 1.2890 ▲
- GBP/EUR: 1.1910 - 1.2070 ▲
- GBP/AUD: 2.0250 - 2.0520 ▲
- EUR/USD: 1.0550 - 1.0790 ▲