The ECB policy decision this morning is less about the expected 25bps cut—it’s fully priced in—than how the policy outlook is communicated, Scotiabank's Chief FX Strategist Shaun Osborne notes.
EUR/USD has risen sharply this week, breaking well above 1.07 for the first time since the US election, with EUR optimism continuing in yesterday's session.
US Dollar (USD) fell sharply. The narrative of US exceptionalism continues to fade as markets are increasingly focused on how Trump policies are hurting the US economy.
Nasdaq futures remain in a three-day range, with 20,665 – 20,700 as a key resistance zone and 20,478 – 20,380 as critical support; price reactions at these levels will determine the next directional move. Watch this as your map. Trade at your own risk only.
The USD/JPY reversed course on Wednesday and dropped some 0.62% late during the North American session, as sellers eyed a daily close below the 149.00 figure.
Gold price remains firm on Wednesday amid speculation that the President of the United States (US), Donald Trump, could roll back some tariffs, at least duties on automobiles linked to the USMCA free trade agreement.
The Mexican Peso (MXN) is recovering some ground against the US Dollar (USD) on Wednesday, on rumors that tariffs imposed by the United States (US) since March 4 could be rolled back or at least adjusted, according to US Commerce Secretary Howard Lutnick.
Pound Sterling (GBP) is enjoying the ride provided by the generally softer USD and the additional tow from the EUR lifting its European peers, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The EUR advance has extended today as Germany’s fiscal reset promises massive spending increases on defence and infrastructure, Scotiabank's Chief FX Strategist Shaun Osborne notes.
So, the 25% tariff regime might have had a very short shelf life after all and we might be looking at low double digit border tariffs now, Scotiabank's Chief FX Strategist Shaun Osborne notes.
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