Key Headlines:

• Tariff Uncertainty Looms – The potential impact on global trade keeps markets unsettled. Which sectors do you think will be hit hardest?

Recap

The US dollar lost its earlier gains after new data showed that the country's manufacturing sector shrank more than expected in March. In Europe, inflation continued to slow down as predicted, so there was little effect on the euro. Meanwhile, the British pound weakened after UK Chancellor Rachel Reeves warned that upcoming US tariffs would affect the UK and that the government would need to respond carefully. Overall, currency markets were unsettled ahead of today’s tariff announcement, set for 4 PM EST. How do you think these developments will impact global trade?

Today’s Key Takeaways

• Tariff Decision Expected Tonight – Washington is set to announce new trade tariffs at 9 PM UK time. Will this trigger a trade war or open the door for negotiations?
• Tiered Tariffs More Likely? – Reports suggest a blanket 20% tariff is unlikely, with a country-specific or tiered approach being considered. What impact could this have on global trade?
• Strategic Move or Trade War? – Some analysts believe the aggressive tariff talk is simply a strategy to force other nations into negotiations rather than a full-blown trade war. Could this approach work?
• Calm Before the Storm? – Markets are expected to remain relatively steady today, with traders waiting for the tariff announcement. The ADP payroll report is due before the decision, but major moves may come later.

How do you think these potential tariffs will impact markets and global trade relationships?

2nd April 2025

Get in Touch!

Our team are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer guidance on the best options available to you.

P: 07441 910 897

E: FX-Admin@frank-exchange.com

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information, or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.