Collinson Forex Daily Market Commentary

Daily Market Commentary

Markets were again ruffled by tariffs, as Trump announced a 'carte blanche' Auto-Tariff of 25%, effective 2^nd of April. This is in line with the introduction of the across-the-board 'reciprocal tariffs', due for commencement the very same day. This did not impress auto-making Countries across Asia and Europe. Canada and the EU are talking retaliation, but Trump has specifically warned them, against such actions. This had a negative impact on equity markets and sent the US Dollar into reverse, losing some recent gains. The GBP rallied back to 1.2900, while the EUR regained 1.0800.

The softer reserve allowed the commodity currencies some relief, with the AUD trading around 0.6300, while the NZD consolidates above 0.5700. US GDP growth was better than expected, rising to 2.4% annually, while markets keenly await the PCE inflation indicator later today.