A relatively quiet Tuesday for data, but events away from data could also sway markets.

The USD weakened overnight, sending paired currencies higher. The EUR/USD opened the week at $1.16221 and remained steady early before dipping to lows of $1.16167. The pair turned its fortunes around, rallying for a big chunk of the session, peaking at $1.16972. It came off those highs and is currently trading at $1.16687. The GBP/USD followed a similar path to the euro after opening at $1.30652, which was a low for the session. The pound climbed steadily early in the session before picking up momentum and rallying to a high of $1.31643. Like the euro, the pound came off those highs and is currently trading at $1.31449.

News that Donald Trump has imposed further tariffs on goods from China has markets down in early morning trading, particularly the Dow. The Dow opened the week at 26,145.53 and remained somewhat stable in early-to-mid-session trading. The index then spiked briefly to a high of 26,187.81 later in the day, before coming off those highs. The Dow began to decline late in the day, dropping to lows of 26,032.31. In early morning trading however, the index dropped further and is now struggling at 25,980.31. The Dax weakened overnight after opening at 12,073.25. The German index then dropped to lows of 12,039.60 early, before rallying to highs of 12,126.30 in the same hour. The Dax tried to find a balance and looked like finishing the day strong, but the decline set in. It managed to avoid the carnage caused by Trump’s tariff announcements but still dropped 30 points in the final hour of trade, closing at 12,046.60.

The day ahead is light-on for announcements but there is still some significant events coming up. Markets are also dealing with the new tariffs announced by Donald Trump. The US President made the announcement outside US trading hours. This may allow markets to have time to absorb this announcement before a new trading day starts, or markets could potentially move wildly once more traders are opening trades when the trading day begins. Data set for release today includes:

Australia – Monetary Policy Meeting Minutes, HPI

Europe – ECB President Mario Draghi speaks

Japan – Trade Balance

Canada – Manufacturing Sales

US – TIC Long-Term Purchases, NAHB Housing Market Index

NZ – GDT Price Index, Westpac Consumer Sentiment, Current Account

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