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06 Mar 2025

Policy uncertainty

• Mixed markets. US equities fell. ECB cut rates but gave off ‘hawkish’ vibes. EUR holds onto recent gains. AUD up near its 4-month average.• Push/pull. US tariff news still evolving. Pres. Trump announced temporary exemptions on some imports from Mexico & Canada. The art of the deal?• US jobs. Monthly US jobs report due tonight. US Fed Chair Powell also speaks on the outlook. These events could spark more USD volatility. Global Trends Markets continue to be whipped around by geopolitical and economic uncertainty. In the US, tariff news is still evolving. US President Trump announced that goods from...

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Peso Jumps As Trump Pauses Tariffs on Mexico

The peso is surging after Donald Trump announced another pause in tariffs on Mexico—only three days after putting them in place. In a post on his social media platform, the president said, “After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement. This Agreement is until April 2nd. I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of...

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Dollar Slide Continues as Growth Differentials Shift

Markets are turning down ahead of the North American open as global bond yields ratchet higher and extreme levels of policy uncertainty cripple investment and spending decisions in the world’s largest economy, narrowing expected growth differentials across the major currency blocs. The trade-weighted dollar is down more than 2 percent on the week, ten-year Treasury yields are lagging their international rivals, and equity markets are setting up for a broad-based retreat after the bell. The Trump administration yesterday said it would give automakers a one-month reprieve from the 25 percent tariffs that have been imposed on other imports from Canada...

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