Author: FX
Treasury yields have been creeping higher today as the White House re-iterated a threat to slap tariffs on Mexico, Canada and China. We will see how it shakes out but it’s a decent reversal given a benign PCE inflation report today.It’s increasingly clear how the Treasury market views tariffs:1) They’re inflationarySome Fed officials dismiss them as a one-off effect but there are many permutations, including retaliation and growth knock-ons. This is straight-forward thinking as raising the prices of things to consumers is the point of tariffs.2) Trade war spendingIf we do end up in some real trade wars, it’s clear…
The S&P 500 is now down 30 points to 6047.One chart that stands out today after earnings is Apple. Shares opened 4% higher but they have turned around in a big way and are down 1.6% now. This article was written by Adam Button at www.forexlive.com. Source link
If the latest Reuters report is to be believed, Trump’s ‘promise’ yesterday to enact immediate tariffs on Saturday was a bluff. However if the White House is to be believed, the tariffs will be announced on Saturday.The Reuters report still says Trump will announce tariffs but that they won’t begin until March 1 and there will be a process for exemptions, which perhaps means that both can be true.In any case, it’s all theatre. There won’t be any universal tariffs.Why? Quite simply, Trump doesn’t have the power.The US Constitution couldn’t be more clear:”The Congress shall have Power To lay and…
Jan. 31, 2025 1:55 PM ETAAPL, GOOG, AMZN, MSFT, AMD, INTC, NVDA, MRVL, AVGO, META, GOOGLBy: Ravikash Bakolia, SA News Editor Leon Neal/Getty Images News Chinese startup DeepSeek’s AI model highlights the risk of AI infrastructure overcapacity if the current speed of investment continues, according to Fitch Ratings. The rating agency said on Thursday that this development could moderate outsized revenue growth for AI chipmakers but lead Source link
United States (US) Press Secretary Karoline Leavitt dashed investor hopes for a delay in tariffs on Friday, announcing from the White House’s press podium that President Donald Trump’s wide tariffs of 25% on Canada and Mexico, as well as 10% on China, would be taking effect on February 1. The announcement shattered earlier reports that the Trump administration would be pushing tariff implementation out to March. Key highlights Press Sec. Leavitt reiterates February 1st deadline for Canada and Mexico tariff. Canada and Mexico tariff at 25% and China at 10%. Tariffs will be up for public consumption on Saturday. There…
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The US Dollar holds ground above 108.00 as traders await weekend tariff announcements. Trump threatens 100% tariffs on BRICS nations if they challenge the US Dollar in global trade. US PCE inflation data shows steady price pressure, reinforcing the Fed’s cautious stance. The US Dollar Index hovers near 108.50, marking a fresh weekly high. The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, remains stable above 108.00 ahead of a highly anticipated weekend for global trade policy. With tariffs on Canada and Mexico set to take effect on Saturday, market volatility…
Mexican Peso erased gains of 0.61% and turns negatively as Trump’s threat of 25% tariffs would be enacted. The White House denied Reuters’ report about US delaying tariffs implementation to March 1. Mixed US economic indicators and Fed commentary maintain cautious market sentiment. The Mexican Peso (MXN) erases some of its earlier gains and losses ground against the US Dollar (USD), down a minimal 0.07% on Friday, extending its drop after losing more than 1% on Thursday. The tariff trade continues to boost the Greenback, after The White House confirmed that President Donald Trump will enact 25% tariffs on Canada…
The Canadian Dollar recovered 0.65% against the Greenback on Friday. Little of note from Canada to wrap up the week as US Dollar flows dominate. Market sentiment lurched higher after Trump kicks the tariff can down the road. The Canadian Dollar (CAD) is recovering ground on Friday, climbing over six-tenths of one percent against the Greenback. The Loonie briefly tumbled to a fresh five-year low against the US Dollar during the overnight session after US President Donald Trump went on a new social media escapade promising a stiff package of tariffs against both Canada and Mexico. A last-minute pivot by…
Trump reiterates tariff threats on Mexico, Canada, and China. Fed maintains cautious stance on inflation risks, holding rates steady. AUD/USD hovers near 0.6215 amid RBA rate cut bets and China’s economic slowdown. The AUD/USD pair trades slightly higher at 0.6215 in the Asian session on Friday but remains under pressure due to fresh tariff threats from US President Trump. Market participants continue to anticipate a dovish shift from the Reserve Bank of Australia (RBA) in February, adding to the Aussie’s downside risks. Trade tensions weigh on sentiment Trump reaffirmed plans to impose tariffs on Mexico, Canada, and China, fueling safe-haven…