EURGBP: Cross Strength Pervades as EUR Outperformance Beds In

• 7,980 USM5 109 puts, 9 vs. 116-08/0.05% at 1139:24ET
• additional 30Y puts a little earlier:
• 4,910 USM 110 puts10 ref 116-27

• EUR/USD: May01 $1.1270(E1.1bln), $1.1500(E1.0bln); May05 $1.1073(E2.4bln), $1.1100($1.5bln), $1.1190-00(E1.4bln), $1.1285-00(E2.3bln)
• USD/JPY: May01 Y143.00($1.3bln), Y145.75($1.6bln); May02 Y147.50($1.2bln)
• AUD/USD: May05 $0.6550-60(A$1.0bln), $0.6635-45(A$1.1bln)
• USD/CAD: May05 C$1.3865-70($2.5bln)

Reuters carrying comments from US Commerce Secretary Howard Lutnick providing more clarity on tariff relief to the auto sector President Donald Trump is expected to enact via Executive Order today and announce at his 100 days rally in Michigan this evening. 

• Lutnick says, “Adjustments to autos tariffs are aimed at allowing domestic automakers time to grow US plants, employment,” adds that the measures, “grew out of detailed conversation with domestic car makers”.
• Lutnick says, “manufacturers of US-built autos will get a 15% offset for the value of those vehicles against parts imports,” and “all cars that are finished in US that have 85% domestic content will have no tariffs.”
• According to Lutnick, the measures will help domestic car makers move supply chains to the US. Lutnick states that the tariff relief will be “phased in over three years to allow automakers to produce supply chains in US.”
• Lutnick says the tariff relief will be available to all US-built vehicles, apply to foreign car makers building cars in US, and available to anybody who wants to build cars in America.
• As noted in today’s edition of the MNI US Daily Brief, and confirmed by CNBC a short time ago: “Current tariffs of 25% on imported vehicles into the US will continue, but the new measures will prevent other adjacent levies such as steel and aluminum from “stacking” on top of them.”