TARIFFS: Trump Again Ties China Tariff Leverage Into TikTok Sale
Apr-04 17:40
Equities pick up a little from the lows as Pres Trump on Truth Social announces a a TikTok deal deadline extension, but also refers to China tariffs - for context, recall yesterday Trump said "You have a situation with TikTok where China will probably say we'll approve a deal but will you do something on the tariff? The tariffs give us great power to negotiate. They always have."
- @realDonaldTrump "My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress. The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days. We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!). This proves that Tariffs are the most powerful Economic tool, and very important to our National Security! We do not want TikTok to “go dark.” We look forward to working with TikTok and China to close the Deal. Thank you for your attention to this matter!"
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FOREX: EURCAD Reaches Four-Year High Above 1.55
Mar-05 17:33
- Upward pressure on the Euro is persisting across the EU close, with any dips for the single currency over the past 24 hours remaining extremely shallow. EURUSD is currently consolidating its impressive 1.4% advance on Wednesday, with spot hovering just below session highs of 1.0887, threatening an even stronger rally as we approach both the ECB meeting and NFP later in the week.
- Euro strength remains broad based, with the EURCHF surge continuing to standout. Following the break of 0.9518, the cross has extended gains to 1.62% in recent trade, rising above 0.9600 for the first time since July last year. Above here, attention will be on 0.9655, the 61.8% retracement of the May-August downswing, and 0.774, the July ’24 high.
- Most recent headlines on a one-month delay for Canada on Autos has done little to move the needle, however, EURCAD continues to rise aggressively. EURCAD is up 1.4% on Wednesday and has risen to a fresh four-year high above 1.55. Resistance remains scant here, signalling scope for a more protracted move to the pandemic induced highs just shy of 1.60.
- EURGBP has also extended its short-term reversal, rising 0.9%. This cross will be worth monitoring as we approach strong downtrend resistance, intersecting around 0.8430.
US TSYS: Tsys Dip on US Weighing Auto Tariff Pause on Canada & Mexico
Mar-05 17:03
- Treasury futures retreat after latest headlines US weighing auto tariffs on Canada and Mexico.
- Still off session lows the Jun'25 10Y contract trades -6 at 111-02 after vs. 110-27 low, still well inside technicals: resistance above at 112-01/02 (High Mar 4 / 1.382 proj of Jan 13-Feb 7-12 swing), support below at 110-23/110-00 (Low Feb 28 / High Feb 7).
- Curves still steeper: 2s10s +3.933 at 28.891, 5s30s +3.428 at 52.483.
GLOBAL: US Weighing Month Delay of Canada & Mexico Tariffs on Autos
Mar-05 17:03
- "*US WEIGHS ONE-MONTH DELAY OF CANADA, MEXICO TARIFFS ON AUTOS" (BBG)
- Bloomberg report that "The Trump administration is considering a one-month delay for automakers from newly imposed tariffs on Mexico and Canada, according to people familiar with the matter, as a temporary reprieve following pleas from industry leaders."
- Commerce Secretary Howard Lutnick has hinted in recent days that exceptions to the initial tariffs were under consideration. Earlier today, he stated that Trump was thinking about autos and USMCA-compliant categories for today's plan.
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