FOREX: EUR/USD Rips Through $1.10 as USD Over 1% Lower Than Election
Apr-03 09:12
- The greenback's step lower on yesterday's tariff announcement is extending into Thursday's NY crossover, prompting the USD Index to break comfortably through 103.00 and plumb the lowest levels since early October. This puts the currency over 1% lower relative to Trump's election and near 7% lower since his inauguration in January.
- Dwindling Fed pricing is largely responsible here, with markets adopting the view that softer-than-expected global economic growth with counter the inflationary pressure of levies, and force the Fed's hand in cutting rates more aggressively for the remainder of 2025.
- Unsurprisingly then, the greenback is by a distance the weakest currency in G10 - with haven currencies JPY and CHF firmer. Interestingly, the single currency is rallying sharply as markets look to the EU for their countermeasure response, which is likely to pressure US services and tech firms on top of measures to support local growth and domestic businesses. As a result, EUR/USD has rallied through the $1.10 handle, breaking mid-March resistance in the process.
- Antipodean currencies are not benefiting, however, with AUD and NZD among the weakest in G10 as APAC trade partners are hit with among the most punitive tariff measures on Trump's table - with China, Vietnam and Cambodia seeing the sharpest rates, on top of the 10% levy for Australia itself.
- Any further commentary from Trump's team is unlikely Thursday, with his schedule light on public events. Topically, trade balance data from the US and Canada crosses as well as ISM Services data and the weekly jobless claims release. Fed's Jefferson & Cook will be watched carefully, however it's Powell's speech on the economic outlook on Friday that takes primary focus.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EGB SYNDICATION: DDA 10-year 2.50% Jul-35 DSL: Book update
Mar-04 09:10
- Books in excess of E13bln
- Initial spread guidance at +25.0 to +28.0bps vs the 2.50% Feb-35 Bund (ISIN: DE000BU2Z049).
- (ISIN: NL0015002F72)
DUTCH AUCTION PREVIEW: DDA 10-year 2.50% Jul-35 DSL: Book update
Mar-04 09:07
- Books in excess of E9bln
- Initial spread guidance for the new 10-year 2.50% Jul-35 DSL at +25.0 to +28.0bps vs the 2.50% Feb-35 Bund (ISIN: DE000BU2Z049).
- (ISIN: NL0015002F72)
EGB OPTIONS: Bund outright Put buyer
Mar-04 08:57
RXJ5 130p, bought for 26.5 up to 27 in 6k.
