By Ashley Finill
Another week and another week of tariffs being imposed by President Donald Trump on countries importing goods into the US. However, with these drastic and somewhat unfair tariffs being slapped onto countries, the US dollar has been the overall loser as it has tanked against the major currencies over the past month. In the past month alone, sterling has gained a whopping 6 cents against the greenback, bringing USD purchasers buyer’s delight. However, the gains for the pound on the US Dollar have come at a price and to the expense of losses against the Euro, as the single currency has come out the strongest in recent weeks whilst the President continues to run rampant with his tariffs. This morning, Trump’s tariffs have taken effect globally with the UK being hit with a 25% increase on steel. Measures on imports from the EU to the US have also started today, the European Union has announced this morning that it will retaliate with their own tariffs on the US with countermeasures affecting around €26bn of US goods from April 1st.
US/Ukraine Peace Talks
Yesterday talks between the US and Ukraine were held in Saudia Arabia to try and bring an end to the over 2-year conflict between Russia and the Ukraine. Yesterday evening, it was announced that Ukraine Prime minister Zelenskyy has accepted a proposal for a 30-day ceasefire which is a significant moment since the conflict began with hopes this will bring an end to the destruction in Ukraine brought by the Russians. Donald Trump has agreed to continue aid and intelligence from the US to Ukraine in the meantime whilst an agreement can be struck between the US, Ukraine, and Russia. Should the war come to an end, we may see a continuation of US weakness as investors sway away from investing into the safe Dollar and putting their money elsewhere.
Data Today and Rest of the Week
Some data releases to take note of for the rest of the week which are likely to affect the currency market. Today at 12.30pm the US post Consumer Price Index, at 1.45pm Canada announce their interest rate decision, they are expected to cut from 3% to 2.75%. Back to the US at 6pm as the post their monthly budget statement. Tomorrow at 10am, the EU post industrial production. At 12.30pm the US record PPI. Onto Friday, at 7am in Germany, Harmonized Index of Consumer Prices and in the UK at the same time GDP will be announced, this will give an insight on growth for the UK Economy. Staying in the UK At 9.30am, Consumer Inflation Expectation is released. Finishing off the week, the US post Michigan Consumer Sentiment Index at 2pm.