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Trump tariffs hang over markets

Jake Trask
Written by
Jake Trask

Jake Trask

OFXpert

Based in London, Jake boasts a rich and extensive career in the foreign exchange industry, spanning 15 years.

| Tuesday 1 April, 2025

Daily Currency Update

Financial markets are on tenterhooks as the world awaits the details of Donald Trump's latest tariff plan which looks likely to put additional charges on imports from all countries around the world without exception. At present, it appears that after implementation certain countries will be removed or have their tariffs reduced. After thinking they could be exempt, it seems like PM Keir Starmer will find the UK is on the list before a possible early exit given the relatively even balance of trade with the US. Given the huge amount of uncertainty and potential damage this could cause the US economy, the usual safe-haven US dollar is only posting modest gains and is losing ground versus the other traditional haven currencies, the Swiss Franc and Japanese Yen. We are due to learn tomorrow evening what the scale and scope of Trump’s plans will be. GBP/USD is around 1.29 and EUR/USD is at 1.08.

Key Movers

There is a lot of data due today including Eurozone inflation for March which is expected to moderate to 2.2% y/y and a speech from European Central Bank head, Christine Lagarde. From the US we have the monthly US ISM Manufacturing PMI reading as well as last month’s JOLTS Job Openings report. Usually all of these would be market moving events, however it appears that everyone is completely focused on Trump’s plans so they may be overlooked somewhat.

Expected Ranges

  • GBP/USD: 1.2855 - 1.3000 ▼
  • GBP/EUR: 1.1880 - 1.2000 ▼
  • GBP/AUD: 2.0610 - 2.0760 ▲
  • EUR/USD: 1.0755 - 1.0850 ▼

Written by

Jake Trask

OFXpert

As a Senior Corporate Client Manager, Jake and his team manage a diverse portfolio of 250 businesses to meet their varied foreign exchange needs. He enjoys untangling the complexities of foreign exchange dynamics, constantly striving to provide clients with the most informed insights and strategies to navigate these fluctuations successfully.