The dollar is falling further in European trading as it fails to find any shelter in the first wave of the market reaction towards Trump’s tariffs. Worries about the tariffs driving the US economy to the brink of a recession are outweighing everything else, with traders clearly not liking the sort of uncertainty that Trump is bringing to the table on the domestic front.
10-year yields in the US are also marked down by 13 bps to 4.068% currently, just off lows of 4.04% earlier. Still, it is the lowest levels for yields since October last year. With the bid in bonds, that is translating to a strong decline in USD/JPY as well with the yen arguably being the safe haven of choice in all of this. The pair is now down 1.7% to 146.75 on the day, closing in on the March lows.
Elsewhere, EUR/USD is also up 1.5% to 1.1013 and GBP/USD up 1.2% to 1.3161. Meanwhile, USD/CAD has also broken to fresh lows for the year in a fall to 1.4123 and even AUD/USD is now over 100 pips higher from the lows in Asia – up 0.6% to 0.6336.
EUR/USD daily chart