ForexLive European FX news wrap: Markets continue to digest court ruling on Trump tariffs | Forexlive
Headlines:
Markets:
- AUD leads, EUR lags on the day
- European equities higher; S&P 500 futures up 0.9%
- US 10-year yields up 2.6 bps to 4.505%
- Gold up 0.3% to $3,300.99
- WTI crude up 0.6% to $62.19
- Bitcoin up 1.3% to $108,754
It was a relatively quiet session with some bank holidays in the likes of Germany, France, and Switzerland. But European markets were still open and the big story comes from overnight as Trump’s reciprocal tariffs was blocked by the US Court of International Trade.
The sectoral tariffs on steel, aluminum, semiconductors, and autos are all still in place though. And Trump is to expedite an appeal in the courts to overturn the ruling, though it remains to be seen if he will be successful on that.
Even if he isn’t, there are still other avenues in which he can go forward with his tariffs plan. Most of that will take months to see through but the quickest one would be to invoke Section 122 from the Trade Act of 1974, allowing for 15% tariffs for 150 days. But we’ll see what his response will be later.
The dollar was higher in Asia trading but has more or less surrendered all of the early gains in European trading.
EUR/USD was down to 1.1210 earlier but is now back up to 1.1275, down just 0.15% on the day. Meanwhile, USD/JPY was up around 146.00 to start the session but is holding closer to the 145.00 mark now – up just 0.14%. Elsewhere, the dollar is also trading near flat against the pound, franc, and loonie with marginal changes against the antipodes.
The check back in the dollar also sees gold recover early losses to be up now, just above the $3,300 mark. The low earlier today touched $3,246 for the precious metal.
In other markets, equities are holding firmer but have also eased up on the early gains. S&P 500 futures are up 0.9% but were up as much as 1.6% earlier in the session. European indices are also higher but the gains are nothing to shout about with the DAX seen only 0.1% higher at the moment.
All eyes will be on what Trump’s response will be as markets are digesting what the future will hold on his tariffs plan. I’ll be off tomorrow for a personal day but I’ll catch you guys again next week. Have a good end to the week and wonderful weekend, everyone!
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