USDCAD: open 1.4286, overnight range 1.4260-1.4316, close 1.4265, WTI 69.43, Gold 3040.42
The Canadian dollar ignored President Trump ‘s latest tariff salvo. Late yesterday afternoon, Trump announced 25% tariff on all cars imported into the US, effective April 2. The tariffs also include auto parts and the 25% tariff applies to the non-US content of a vehicle imported under the USMCA trade agreement.
The Canadian dollar mostly shrugged of the news due to a lack of details. Trump’s tariff plan appears to have caught his administration off-guard as no one knows how to calculate the required tariff on every part of a car and how to account for the integration of the Canadian US and Mexico auto manufacturing process.
Wall Street, lost ground with the S&P 500 falling 1.12%. Asian markets saw mixed outcomes—Chinese indices held up, but Australia’s ASX 200 dropped 0.37%. In Europe, major indexes posted losses, with Germany’s DAX down 0.60%. S&P 500 futures are down 0.22% while gold (XAUUSD), benefiting from its safe-haven appeal, gained 35.00.
EURUSD drifted in a 1.0733-1.0787 range overnight. The single currency has remained relatively stable, though showing mild softness compared to the previous session. Market participants are cautious as the threat of an extended global trade conflict looms. The Norges Bank held its policy rate steady at 4.5% but signaled a potential rate cut down the road, which briefly caught traders’ attention. In Europe, sentiment is being shaped by expectations of a forceful reaction to U.S. tariffs, with Germany’s Economic Minister urging for a strong reply. For now, traders are waiting for more clarity before committing to new positions.
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GBPUSD traded firmer in a 1.2871-1.2929 band then continued to rise in NY reaching 1.2942. Ongoing headlines around U.S. tariffs continue to weigh on sentiment, while in the UK, domestic politics have added another layer of complexity, thanks to Rachel Reeves latest spring budget.
USDJPY rallied from 150.06 to 150.98 and opening New York at 150.93 as traders reacted to fresh tariff measures from the U.S. Japanese officials are trying to manage the fallout, with Prime Minister Shigeru Ishiba expressing hopes for leniency from Washington due to Japan’s significant investment in the U.S. auto industry.
AUDUSD traded quietly in a 0.6279 to 0.6319 range as Australia is unaffected by the latest auto tariffs. It doesn’t manufacture cars.
Today’s US data includes Q4 GDP (forecast 2.4%), PCE, and initial jobless claims. GDP is stale, and the rest of the data is overshadowed by the auto tariffs.
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