Regular bids underping US equities whereas USD falls. No concern of tariffs
The market is more and more calling the bluff on tariffs, even earlier than they’re introduced.
At present’s ‘reciprocal’ tariff announcement initially left markets weary however after a CNBC report suggesting they are going to be delayed and have some exceptions, the market has shortly concluded that it is extra about negotiations than precise tariffs.
Yesterday, I highlighted how Congressional opposition to tariffs makes it unlikely they are going to be used to pay for tax cuts.
The S&P 500 is now 38 factors greater or +zero.6% with the Nasdaq even stronger up 1.zero%.
It is a related story within the FX market because the US greenback is on the lows of the day throughout the board. The euro is up 58 pips whereas the pound is up 93, each at session highs.
One other notable one is USD/CAD, which is now on the lowest since mid-December when Trump first threatened tariffs on Canada.
This text was written by Adam Button at www.ubaidahsan.com.
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