Following Trumps imposed tariffs and speculation around further implications to follow, the Pound has been seen as somewhat of a safe-haven, outperforming most G10 currencies despite comments made by President Trump saying ‘The UK is out of line, but one, I am sure it can be worked out. Followed by comments that the European Union is, an atrocity.
These comments have allowed Sterling to recover losses against the Euro and continued to push further, however with any comments or developments moving forward could flip the markets stance quickly.
Trump stuck to his word about the extension on tariffs for Canada and Mexico however he used the IEPPA (International Emergency Economic Powers Act) to impose them from tomorrow, along with 10% on China.
Outlook on current tariffs are 25% on both Canada and Mexico with the exception of energy and Oil from Canada, only having a 10% tariff on them. This hasn’t been taken well with Canadas Trudeau retaliating threatening to stick tariffs on the US, and China looking to challenge legally. Mexico’s President is due to hold a speech on how his wishes to retaliate.
This has caused increased volatility in the markets with traders adjusting to the announcements from the weekend, however the US Dollar has continued to dominate across the board.
This week is very much being eyed up by traders with some key data being released, with the Bank of England’s interest rate decision on Thursday and Non-Farm payroll print on Friday being at the forefront.
-Oakleigh Exchange Partners-