EUR/JPY daily
The yen continues to strength as global sovereign yields fall and the market grows increasingly concerned about tariffs.
There are still 14 hours until tariffs go into effect on Canada and Mexico and no one is sure what will happen.
The fear is that Trump is basically going to declare a tariff war on the world for the next four years, using them repeatedly. Part of the reason is that it’s not clear exactly what he’s after. The White House today repeatedly signalled that it was all about fentanyl but Trump’s comments have been all over the place.
Negotiations are always the toughest at the end but we’re really on the razor’s edge today. There is plenty of optimism still that a deal will get done and that these moves will reverse but we’re taking it one minute at a time today.