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FOREX: USD Surges At Monday Open On US Tariff Implementation

FOREX
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Early Monday G10 FX trends are heavily favored for the USD, following the weekend tariff announcements from the US administration. The weekend announcement will see 25% tariffs levied on Mexico and Canada, along with 10% on China, starting this Tuesday (see this BBG link). Tariffs on Canada energy exports will be set at a lower 10%. 

  • Canada has already detailed retaliation plans, which will be done in two phases. Firstly on around on around C$30bn worth of US exports, then a larger product list in a few weeks (around C$125bn per BBG). Mexico and China have vowed a response, but have yet to release any specifics.
  • USD/CAD spiked to fresh highs, 1.4749, but was last 1.4725/30. This was fresh highs back to 2003. EUR/USD is also down over 1%, last 1.0240 (earlier lows were 1.0141.
  • AUD/USD is at 0.6155/600, slightly up from session lows. We are off 1%, while NZD/USD is down 0.90%, to 0.5580/85.
  • USD/CNH is up to 7.3600, 0.50% weaker in CNH terms.
  • Yen is outperforming, likely on safe haven related demand. USD/JPY was last sub 155.00, the only G10 currency firmer against the USD so far today. 
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Early Monday G10 FX trends are heavily favored for the USD, following the weekend tariff announcements from the US administration. The weekend announcement will see 25% tariffs levied on Mexico and Canada, along with 10% on China, starting this Tuesday (see this BBG link). Tariffs on Canada energy exports will be set at a lower 10%. 

  • Canada has already detailed retaliation plans, which will be done in two phases. Firstly on around on around C$30bn worth of US exports, then a larger product list in a few weeks (around C$125bn per BBG). Mexico and China have vowed a response, but have yet to release any specifics.
  • USD/CAD spiked to fresh highs, 1.4749, but was last 1.4725/30. This was fresh highs back to 2003. EUR/USD is also down over 1%, last 1.0240 (earlier lows were 1.0141.
  • AUD/USD is at 0.6155/600, slightly up from session lows. We are off 1%, while NZD/USD is down 0.90%, to 0.5580/85.
  • USD/CNH is up to 7.3600, 0.50% weaker in CNH terms.
  • Yen is outperforming, likely on safe haven related demand. USD/JPY was last sub 155.00, the only G10 currency firmer against the USD so far today.