Trump tariffs take effect
Written by
Daily Currency Update
The ‘Trump Tariffs’ came into effect yesterday, including the 104% levies on China, further escalating a global trade conflict and denting market sentiment. Trump has broadly dismissed the market turmoil, arguing that it is necessary pain to overhaul perceived unfair trade imbalances. It seems there is uncertainty in the outlook for the tariffs after Trump said the moves could be both permanent and a tool to get more favourable trade agreements signed. It is believed that many countries are keen on making a deal, but so far China doesn’t seem to be one of those willing to strike a deal and are happy to go the distance on the recent changes.GBP/USD is back above 1.2800 and has touched 1.2850 earlier this morning. EUR/USD has similarly jumped, with the currency pair touching 1.1075 at the highs. GBP/EUR continues its 7-day decline with the pair touching 1.1585 around 8am (GMT) this morning.
Key Movers
Minutes from the Federal Reserve’s latest policy meeting is scheduled this for this evening. After the recent policy changes from the White House, the impact of this release will be lessened unless an indication is given on quantitative tightening. Interest rates were left unchanged at its March 19 meeting, but policymakers hinted that they would cut borrowing costs by half a percentage point by end of 2025. This is despite inflationary concerns, clouded further by the recent Trump tariffs.Expected Ranges
- GBP/USD: 1.2720 - 1.2920 ▲
- GBP/EUR: 1.1580 - 1.1710 ▼
- GBP/AUD: 2.1030 - 2.1560 ▲
- EUR/USD: 1.0890 - 1.1090 ▲