EUR/USD extended its upward trajectory on Wednesday, rising toward the upper end of its recent range and was last seen near the 1.0900 zone following the European session.
The Pound Sterling advances early during the North American session against the US Dollar as traders await US President Trump's tariff announcement, which could potentially spur a global economic slowdown.
European Central Bank policymaker Robert Holzmann, who dissented to the ECB's decision to cut key rates by 25 basis points after the March meeting, argued on Wednesday that they don't need to become more accommodative, per Reuters.
Pound Sterling (GBP) is also quiet and extending is recent consolidation around 1.29 ahead of Wednesday’s US tariff announcement, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Euro (EUR) is extending its tight consolidation around 1.08 ahead of Wednesday’s US tariff announcement, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The Canadian Dollar (CAD) is little changed—and a relative, if minor, underperformer versus many of its peers, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Welcome to Liberation Day. Tariffs are front and center for markets ahead of this afternoon’s announcement from the White House, due around 4pm from the Rose Garden, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, starts to turn red and dips below 104.00 at the time of writing on Wednesday, while equities sell off and bond yields drop. The Greenback
S&P 500 has so far defended the low of last down leg near 5500pts, which is also an ascending trend line connecting troughs of April 2024/August 2024, Societe Generale's FX analysts report.
US Dollar (USD) is likely to trade in a range between 149.05 and 150.20 vs Japanese Yen (JPY). In the longer run, USD appears to have moved into a 148.40/151.00 consolidation range, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
European Central Bank (ECB) board member Isabel Schnabel said on Wednesday that trade fragmentation is structurally harmful for economic growth and inflation, per Reuters.
New Zealand Dollar (NZD) could continue to rebound but any advance is likely part of a 0.5670/0.5725 range. In the longer run, if NZD breaks above 0.5725, it would mean that the weakness has stabilised, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Bloomberg with the report saying that several branches of China’s top economic planning agency have been instructed in recent weeks to hold off on registration and approval for firms that are looking to invest in the US
Despite ‘Liberation Day’ announcements, we expect uncertainty to remain high over the coming months. Heightened trade policy uncertainty could potentially lower global GDP by c.1.0-1.5%. Most of this drop would reflect a decline in US output and that of other major economies.
As we expected, Norges Bank left the policy rate unchanged last week. After all, the interest rate path from December did not necessarily imply an interest rate cut in March.
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