In an interview with Fox Business Network on Wednesday, US Treasury Secretary Scott Bessent said China's decision to raise tariffs on US imports to 84% is "unfortunate," per Reuters.
USD/JPY dipped this morning. Safe-haven demand was the main catalyst while UST-JGB yield differentials also narrowed. Pair was last at 144.74 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The USD/CAD pair falls sharply to near 1.4180 during European trading hours on Wednesday. The Loonie pair faces an intense sell-off as the US Dollar (USD) takes bullet for United States (US) President Donald Trump raising import duty on China to 104%.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, extends the previous day’s correction and hovers around 102.00 at the time of writing on Wednesday.
Brent crude has extended its decline after breaching key support levels from earlier in 2024. While momentum indicators suggest the move is stretched, signs of a significant rebound remain elusive, Societe Generale's FX analysts report.
Following President Trump's tariff announcement, the euro has shown surprising resilience, acting more like a safe haven currency alongside the Swiss franc and Japanese yen.
China's Finance Ministry said on Wednesday that they will impose additional 84% tariffs on US imports from April 10, per Reuters, up from the 34% previously announced.
Silver price (XAG/USD) surges almost 2% to near $30.40 during European trading hours on Wednesday. The white metal strengthens as the US Dollar (USD) tumbles amid fears that the escalating trade war between Washington and Beijing could lead the United States (US) economy into a recession.
This afternoon the Mexican statistics office will release the March inflation figures. However, they are unlikely to tell us much new, Commerzbank's FX analyst Michael Pfister notes.
EUR/USD advances to near 1.1100 in Wednesday’s North American session. The major currency pair strengthens as the US Dollar (USD) plummets on the brewing trade war between the United States (US) and China.
The Swiss franc has emerged as a clear winner amidst the recent market turbulence following Donald Trump's tariff announcement, appreciating significantly against major currencies.
The USDCHF pair saw one of the most aggressive selloffs in FX following the tariffs announcement last Wednesday as traders flocked to the Swiss Franc amid the risk-off flows
As expected, the Reserve Bank of New Zealand cut its key interest rate by 25 basis points to 3.5% this morning. After the RBNZ had recently cut interest rates in large steps of 50 basis points each, the pace has been slowed down, as expected.
So far, the Chinese currency has not responded to the US tariffs with a major devaluation. But many small devaluations can add up to a big effect. USD/CNY rose as high as 7.35 this morning, the weakest level for the CNY since 2007.
"A major shift in global trading arrangements could harm financial stability by depressing growth," the Bank of England's Financial Policy Committee said in a statement following its two-day meeting.
Gold price (XAU/USD) bounces higher and recovers to $3,045 at the time of writing on Wednesday after United States (US) President Donald Trump’s tariffs came into effect.
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