#AN020: US Tariffs, Euro Weakness, USD Strength, Forex at Risk?

1. New US Tariff Threats Against the EU and Canada
Over the weekend, President Trump announced the sending of formal letters introducing new tariffs: 35% on Canadian goods and potential tariffs for the EU as well (15-20%).

Context: The return of protectionism fuels uncertainty.
Market Impact: Shift to safe-haven currencies — the US dollar gains ground, while EUR/USD and USD/CAD remain under pressure.

2. EUR/USD Below 1.1700
The EUR/USD pair closed the week below 1.1700, failing to recover.

3. GBP/USD Loses Ground
The GBP/USD pair fell below 1.3500, hitting a three-week low.

Factors: Disappointing UK GDP data + stronger USD.
Impact: Pressure on the pound, possible continuation of the downtrend to 1.3420 unless better data emerges.

4. USD/JPY near 147.50
The dollar reached new two-week highs against the yen, hitting 147.50.

Causes: Risk flight and reduced expectations for BoJ intervention.
Outlook: If global sentiment remains adverse, USD/JPY could head towards 148.00.

5. Gold and safe-haven assets recover
Trade uncertainty is supporting gold, which has risen to near $3,360/ounce.
Outlook: Volatility and preference for the USD and JPY are increasing; gold will act as a sentinel of fear in the markets.

🔍 Summary of Impacts on Forex Markets

EUR/USD Weaker: Push toward 1.1600 due to trade concerns and USD strength
GBP/USD Down: UK data pressured + risk aversion
USD/JPY Rising: USD refuge and possible break above 148
USD/CAD Volatile: Canadian tariffs penalize CAD, but oil prices and BoC reactions to monitor
Gold & XM Gold strengthens, signaling risk, USD support; JPY and USD benefit