Trump might have delayed the 25% tariffs on Canada and Mexico however the further 10% tariffs on China did go into impact earlier. Beijing did reply with their very own counter-tariffs however they’ll solely go into impact on 10 February. And with Trump teasing talks with Xi earlier than heading to mattress, there’s nonetheless some hope.
The greenback opened the week with a niche larger however misplaced all of its attract from there in buying and selling yesterday. There was a slight bounce earlier however even that appears to have pale fairly a bit now. EUR/USD is flat on the day because it begins to eat again into that opening hole on the week:
EUR/USD hourly chart
The near-term chart nonetheless reveals sellers in management, with value motion resting under the important thing hourly shifting averages. However any main draw back transfer can be contingent on tariff headlines and commerce developments within the subsequent few days.
For now, the tariffs can being kicked down the highway suggests hope that Trump might not let all hell break unfastened on the commerce entrance. Nonetheless, the EU and China are positively within the crosshairs subsequent.
Elsewhere, USD/JPY continues to be seen up 0.2% to 155.10 however off its earlier excessive of 155.51 on the session. AUD/USD can be nonetheless down 0.3% to 0.6205 however off its earlier low of 0.6170 after the China retaliation headlines hit.
In the meantime, USD/CAD itself is almost flat at 1.4440 with sellers stepping again in after a push to 1.4500 earlier within the day.
Seeking to broader markets, there’s nonetheless warning to be heeded although. S&P 500 futures are down 0.2% and 10-year Treasury yields are holding the road however solely marginally larger right now by 1.2 bps to 4.565% in the intervening time.
