Market sentiment turned negative, over the weekend, following the announcement of tariffs on the EU. President Trump announced a 50% tariff on all EU products, commencing 1st of June, as the opening volley in the renewed trade war with the single market. The implementation date, was later reviewed to 9th July, following consultations. This sent markets into a renewed sell-off in equities, while the currencies remained steady. The EUR traded just below 1.1400, but may be vulnerable, while the GBP managed to regain 1.3500.The NZD accelerated into the new week, with an all-out assault on 0.6000, while the AUD is fast approaching 0.6500. The commodity currencies are in favour, but remain vulnerable, to extended trade wars. Neither NZ or Australia have secured trade agreement with the US and when Trump is finished with the big fish, he will be knocking on our door.
