Financial markets are staging an across-the-board relief rally after the Wall Street Journal said president-elect Donald Trump intends to stop short of hitting major trading partners with tariffs on his first day in office. Instead, he plans to issue a directive that asks federal agencies to “investigate and remedy persistent trade deficits and address unfair trade and currency policies by other nations”.

Most major currencies are up roughly 1 percent against the dollar—corresponding to our estimates of the tariff impact that had been priced in ahead of the article’s release—with the safe-haven Swiss franc the only exception among developed-market units. Gains could accelerate somewhat ahead of tomorrow’s US equity market open, but the ride will remain bumpy as major unknowns remain around the incoming administration’s policy direction.

To read the Wall Street Journal’s piece, click here