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21 Jan 2025

US tariffs: delayed not derailed

• Trump vol. Markets were swung around by tariff news on Pres. Trump’s first day in office. But on net, equities rose while bond yields & the USD declined.• Delayed not derailed. Wide ranging reviews into US trade were announced. Findings due by 1 April. US trade tariffs still in the pipeline.• AUD & NZD. Softer USD has supported AUD & NZD. NZ headline CPI also a touch firmer than forecast. AU Q4 CPI due next week. Global Trends US President Trump’s second first day in office created a lot of buzz and generated a burst of volatility across markets....

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Currency Markets Retreat as Tariff Nerves Fray

Currency traders are suffering from whiplash after Donald Trump made volatility great again in his first day back in office. The dollar is on the offensive and currencies like the peso, Canadian dollar, and euro are down after the president said he plans to impose 25 percent tariffs on products from Canada and Mexico on February 1. In an unscripted conversation with reporters last night, Trump said the United States’ closest neighbours were allowing “mass numbers of people to come in and fentanyl to come in,” calling Canada “a very bad abuser”. Trump also warned he “may” impose a universal...

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