EUR/USD unmoved as Trump’s steel tariffs come into effect
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Daily Currency Update
Global steel exports to America are now subject to a 25% tariff in a further escalation of Donald Trump's tariff agenda and drawing the European Union into the saga for the first time. The EU has responded by saying it will impose reciprocal tariffs on a variety of goods totalling EUR26bn, however will not be implementing them until April 1st allowing some time to negotiate with the US. EUR/USD has held its ground above 1.09 on the news but is down a touch from yesterday's five month high of 1.0947. GBP/USD remains just above 1.29 as of this morning.Key Movers
Today, we get inflation data from the US with the latest Consumer Price Index figure due at lunchtime. A moderation in CPI from 3% to 2.9% y/y is expected, however the closely watched figure may be overlooked unless there is a huge under/overshoot. The main event from Europe is a speech from European Central Bank President, Christine Lagarde, who is due to partake in the Watchers Conference in Frankfurt. Her thoughts' on tariffs as well as the economic health of the Eurozone will be the main areas of interest.Expected Ranges
- GBP/USD: 1.2860 - 1.3000 ▲
- GBP/EUR: 1.1800 - 1.1895 ▼
- GBP/AUD: 2.0495 - 2.0630 ▼
- EUR/USD: 1.0840 - 1.1000 ▲