Last the US Dollar suffered large volatility as a confusing set of trade policies from the Whitehouse sent the markets into large daily swings.
Fridays NFP data lifted the dollar to end the week just 0.4% lower.
The main theme was tariffs. While the US issued more and more tariffs the markets are now looking towards what reciprocal tariffs may be announced which is eroding confidence in markets and the intra week volatility is rising. Risks are a complete U-turn by the administration and this unpredictability is causing markets to swing widely.
The Euro lost ground while the GBP consolidated. With no surprises from the central bank decisions last week GBP made gains vs the Euro, but both lost to a resurgent Dollar. The risk of tariffs hurt the Euro more as Trump said a deal could be done with the UK. European car manufacturers bore the brunt in the stock markets.
The Yen ended the week as the best performer vs the USD, supported by positive economic data which further reinforced further rate rises by the BoJ. CAD regained the losses of the previous week as highlighted above the pause of the implementation of tariffs helped the CAD regain some of its losses.
On the downside Euro moved lower as it found itself in the crosshairs of potential tariffs threats and GBP weakened post a dovish rate cut.
Oil continued its move lower with WTI losing a further 4%
As we have highlighted the markets are being driven by the Whitehouse administration and their policy announcements and markets will be looking for any further moves here.
Data this week are inflation numbers from the US, Germany and Japan.
Weekly Majors’ Market Performance
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The post Tariffs Begin to Take Their Toll first appeared on trademakers.
The post Tariffs Begin to Take Their Toll first appeared on JP Fund Services.
The post Tariffs Begin to Take Their Toll appeared first on JP Fund Services.
