ForexLive European FX news wrap: Markets on edge awaiting Trump tariffs

Headlines:

• Major currencies see light changes as traders wait on Trump tariffs
• What are the interest rates expectations ahead of the tariffs announcement
• It’s the known unknowns that is gripping markets with uncertainty
• The first quarter depicted in a single chart
• ECB’s Lagarde: Tariffs aren’t good for the global economy
• ECB’s Rehn: Trade protectionism is a key risk to economic outlook
• ECB’s Schnabel: Trade fragmentation is structurally harmful for economic growth, inflation
• US MBA mortgage applications w.e. 28 March -1.6% vs -2.0% prior
• China restricts companies from investing in the US as tensions rise – BBG
• China keeps up the pressure on Taiwan, to simulate strikes on ground and maritime targets

Markets:

• NZD leads, CAD lags on the day
• European equities lower; S&P 500 futures down 0.6%
• US 10-year yields down 1.2 bps to 4.144%
• Gold up 0.4% to $3,122.09
• WTI crude down 0.3% to $71.01
• Bitcoin down 0.6% to $84,673

It’s all about the wait as the countdown to Trump’s big announcement later draws closer. Outside of reports suggesting that he is still largely deliberating plans on tariffs, there’s no new developments so far. And that is keeping markets guessing ahead of the announcement at the White House later at 2000 GMT (4pm ET).

As we get closer to the main event, markets are mixed but taking on a more cautious approach in general. US futures are marked lower alongside European indices while 10-year Treasury yields eased from around 4.18% earlier in the day to 4.14% now.

The major currencies space remains more composed though. The dollar is keeping steadier overall, just keeping a little lower against the antipodes on the day. EUR/USD is steady near 1.0800 with large option expiries in play while USD/JPY is down 0.2% to 149.25, easing slightly from around 149.50 levels at the start of the session.

Besides that, GBP/USD is little changed at 1.2940 and USD/CAD likewise at 1.4320. AUD/USD is seen higher by 0.4% to just above 0.6300 but it doesn’t mean much when risk sentiment is still on edge in trading today.

In other markets, gold is still keeping poised as it holds at $3,122 currently with the high earlier in the day touching $3,135.

There is the US ADP employment data coming up later but expect that to be drowned out by tariff headlines as the spotlight is on Trump today.

This article was written by Justin Low at www.forexlive.com.