Dollar dumped on Trump tariffs as markets.....>

FOREX: Dollar dumped on Trump tariffs as markets fear looming trade spat

-Despite underperforming for the bulk of the session, EUR/USD rallied sharply as

source reports suggested the ECB are unlikely to signal any policy shift at

their March meeting. The move got a further boost as Trump unveiled his plan to

slap tariffs on both steel and aluminium imports. Equity turmoil picked up

heading into the close with markets clearly getting nervous over the prospect of

counter-tariffs, as both Canada and the EU issued rebuttals.

-USD/JPY dropped well below reported demand at the Y106.50 level as safe haven

currencies rallied alongside the decline in equities and the dollar.

-AUD and CAD sank against all others with commodity markets also squeezing lower

on the tariff news. Both currencies touched the lowest levels against the USD

since late December.

-Tomorrow's focus will turn to any WTO or Chinese backlash against Trump's

tariffs, German retail sales, Canadian GDP and Michigan sentiment data. Position

squaring into the weekend's Italian elections and Germany's SPD vote will also

be carefully eyed in the EUR.