Markets brace for a crucial week with an upcoming US tariff announcement and important job data on the horizon. Could this shift central bank expectations?

John Hall • March 31, 2025

Market Jitters Over Tariffs

Key Headlines:

  • Market Jitters Over Tariffs – Growing concerns about potential tariff escalations are weighing on investor sentiment. How could this impact your industry?
  • Key Data Releases Ahead – Markets brace for a crucial week with an upcoming US tariff announcement and important job data on the horizon. Could this shift central bank expectations?
  • Volatility on the Rise? – With economic uncertainty mounting, could we see sharper market moves in the coming days? How are you preparing?


Recap

On Friday, the euro was one of the strongest currencies, rising 0.5% against both the pound and 0.4% against the US dollar. This happened after reports said the European Union is willing to make some compromises to get the US to remove certain tariffs. If this goes well, the euro could get even stronger.


Meanwhile, the Canadian dollar also went up after Trump called his conversation with Canada’s Prime Minister Mark Carney “extremely productive.” This made people more hopeful about trade between the two countries.


These events show how trade talks and government decisions can quickly affect currency values. Do you think these discussions will help or hurt the global economy?

 


Today’s Key Takeaways

  • US Job Numbers in Focus – Can the latest data boost confidence in the US economy?
  • Tariff Uncertainty Ahead – All eyes on April 2nd’s "Liberation Day" and the impact of new US tariffs. How might this affect global trade?
  • German Inflation Data – A slight drop in March inflation is expected. Could this shape future rate decisions?
  • Markets React to Tariff Fears – Stocks are down, gold is up, and the Japanese yen is gaining strength. Are investors seeking safety?
  • Rate Cut Expectations Grow – Markets are now pricing in more aggressive cuts: 80bps from the Fed, 65bps from the ECB, and 55bps from the BoE. Will central banks deliver?
  • Upcoming Events – Tomorrow brings the RBA’s interest rate decision and the first look at Europe’s March inflation figures.


With so much happening this week, do you think markets will stabilise or is more volatility ahead?


31st March 2025

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