Key Headlines:

• Market Jitters After Tariff News – Investors shift to safer assets as uncertainty rises. Are we seeing the start of prolonged market volatility?
• EU & China Ready to Respond – Both have pledged countermeasures against the US tariffs. Could this escalate into a full-scale trade conflict?
• Global Trade Tensions Grow – With major economies preparing to retaliate, how might this impact currency markets and investment strategies?

Recap

Trump’s new tariffs sent shockwaves through global markets, causing stock prices to drop and investors to move their money into safer assets like bonds. The US dollar weakened, while the Japanese yen gained strength as traders sought stability. The UK came out relatively lightly, facing only a 10% tariff, unlike China (54%), the EU (20%), Vietnam (46%), and Cambodia (49%). Meanwhile, Canada and Mexico were spared from any additional tariffs. In response, both China and the EU have already stated they will take action, raising concerns of a potential trade war. How do you think this could affect the global economy?

Today’s Key Takeaways

• Dollar Weakness Continues – GBP/USD and EUR/USD have climbed to their highest levels since October 2024. How long can this trend last?
• Market Caution Grows – The euro has bounced back as the EU prepares its response to US tariffs, while GBP and JPY are also gaining. Will tensions ease or escalate?
• Rate Cut Expectations Rise – Investors are factoring in more rate cuts from the Fed, ECB, and BoE due to slowing growth concerns. Could central banks adjust their stance?
• Buying Opportunity for USD? – Some see the dollar’s dip as a chance to buy, anticipating a possible Fed shift toward a more hawkish stance if inflation pressures grow. Do you see value in the USD at current levels?

3rd April 2025

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