📈 Market Shifts: US Tariffs Double, UK Exempt – All Eyes on US Data & Central Banks
U.S. steel and aluminium tariffs double — but the UK avoids impact. Trump weighs in on China, markets brace for fresh U.S. data, and central banks take the spotlight.
👀 What does it all mean for the dollar, the pound, and broader market sentiment?
Key Market Takeaway
USD Strengthens Ahead of Data: The dollar is gaining support as markets position ahead of this week’s crucial U.S. jobs figures.
Market Recap:
- Dollar Rebounds on Strong JOLTS Report
U.S. job openings surprised to the upside, signalling sustained labour market strength in April. This boosted Treasury yields and demand for the dollar.
- Fed’s Tone: Wait-and-See
Fed’s Bostic suggested patience is the right approach for monetary policy, reinforcing expectations of a cautious stance rather than immediate rate changes.
- Euro Slides After Softer Inflation
Eurozone CPI came in at 1.9%, under expectations, adding to speculation around further ECB rate cuts and weighing on the euro.
- Australian Growth Disappoints
Australia’s Q1 GDP came in at 0.2% (vs. 0.4% forecast), weakening the AUD. GBPAUD remains elevated.
Today’s Market Update:
Tariffs Double, UK Spared
U.S. tariffs on steel and aluminium double to 50% today, but the UK is exempt. The pound showed little reaction, remaining stable despite the news.
Trump Comments on China
President Trump referred to China's Xi Jinping as “very tough, and extremely hard to deal with” but this has had very little impact on markets.
Focus Turns to U.S. Data
Upcoming U.S. economic releases will offer insight into how the domestic economy is handling trade tensions. So far this week, weak manufacturing data contrasted with strong job openings (JOLTS), contributing to dollar volatility.
Fed Watch
The Fed’s Beige Book is due out this evening, providing a snapshot of regional economic conditions ahead of the next policy meeting.
Bank of Canada in Focus
The BoC is expected to hold rates at 2.75%. Markets will watch for any commentary on trade risks and how they may influence future policy.

4th June 2025
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