Cooler heads prevail...at least for now | FX Research

Investor risk appetite is picking up as the new week gets going. There were some initial jitters in Asia, but cooler heads have prevailed for now. Uncertainty around U.S. tariffs remains a key focus for the market.

The latest announcement from Trump includes a 25% tariff on all steel and aluminum imports into the U.S. from all countries. He has also stated that Canada and Mexico have not taken enough action to avoid the previously threatened tariffs.

Looking ahead, the economic calendar is relatively quiet today. However, the week will bring key events, including U.S. CPI, retail sales, and Federal Reserve Chair testimony. Today’s notable events include the Bank of Canada Market Participant Survey, U.S. consumer inflation expectations, and an ECB appearance by Christine Lagarde.

Exclusive FX research from LMAX Group Market Strategist, Joel Kruger