Trump tariffs roil markets, sending JPY to....>

FOREX: Trump tariffs roil markets, sending JPY to multi-month highs

-The surprising announcement of the imposition of a 5% import tariff on Mexican

goods flowing into the US from June 10th caught markets offside, sending the MXN

lower by near 3% and unsettling risk sentiment across the board. European

equities are lower across the board, with US equity futures following suit,

helping pressure German 10yr yields to fresh all time lows. USD/JPY found little

support at the Y109 handle, plumbing fresh multi-month lows printed at Y108.76.

As a result, JPY is comfortably the best performer in G10 at present, with CHF

not far behind.

-The souring trade sentiment has worked against the CAD so far Friday, with

USD/CAD comfortably back above C$1.35. Lower energy prices are also working

against the currency, with WTI and Brent crude futures lower by as much as 2%

this morning.

-The Friday calendar is a busy one, with PCE data for April crossing alongside

Canadian GDP. MNI Chicago PMI is also due as well as May final Uni. of Michigan

sentiment. Fed's Bostic and Williams are scheduled to speak.