Free Trial

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.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.