Pound Sterling (GBP) is up a modest 0.5% vs. the US Dollar (USD) and retracing a portion of its recent losses, Scotiabank's Chief FX Strategist Shaun Osborne notes on Wednesday.
The Euro (EUR) is up an impressive 0.8% vs. the US Dollar (USD) and outperforming most of the G10 currencies with the exception of AUD and CHF, recovering its recent losses and pushing back toward last week’s highs, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The Minutes revealed that Federal Reserve policymakers almost unanimously agreed that the U.S. economy was at risk of experiencing both higher inflation and slower growth. They noted that “difficult tradeoffs” could lie ahead for the central bank.
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, warned on Wednesday that last week’s wide-ranging tariffs could unsettle people’s expectations about inflation.
Canada’s 25% counter tariffs on non-USMCA compliant vehicles came into force just after midnight, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Yesterday’s hopes for some moderation in US tariff policy met the reality of 104% tariffs on China and President Trump’s other levies being imposed as of midnight last night, Scotiabank's Chief FX Strategist Shaun Osborne notes.
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.
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