Ipek Ozkardeskaya
Swissquote Bank Ltd
American and Canadian officials have spent the last few hours imposing tariffs on each other—only to roll them back —adding to the absurdity of the tariff situation. The problem is that this tariff charade has real-time consequences and that’s weighing on investor sentiment and pressuring market valuations.
Market volatility is rising as visibility becomes cloudier by the day, any market rebound may not be viable unless there is a form of stability in the White House – but that doesn’t seem to be on the menu du jour.
The US will update its inflation numbers today and tomorrow, and the data is important. A set of inflation numbers in line with expectations, or ideally softer-than-expected, won’t guarantee that inflation will remain under control but will give a bigger margin to the Federal Reserve (Fed) to act if necessary. A set of inflation numbers above expectations, on the other hand, would be the sour cherry on top of an already staling cake.
Across the Atlantic, yesterday saw the selloff in the Stoxx 600 index accelerate. The initial sugar high due to massive spending plans is now replaced by negotiations across the political spectrum as the parties involved are trying to get a bigger part of the cake for themselves... But in fine, security comes first.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
Recommended Content
Editors’ Picks
Fed policy decision, revised dot plot to ramp up USD volatility – LIVE
The Federal Reserve will announce policy decisions following the two-day meeting and publish the revised Summary of Economic Projections. Changes to interest rate and growth expectations could drive the US Dollar's valuation ahead of Powell's presser.
EUR/USD meets support near 1.0870 ahead of the Fed
Investors' cautious approach appears to be bolstering the US Dollar ahead of the Federal Reserve's interest rate decision scheduled for later this evening in Europe, while the EUR/USD has fallen back below 1.0900 after reaching its year-to-date highs on Tuesday.
Gold holds near record highs ahead of Fed
Gold alternates gains with losses after reaching a record high near $3,050 earlier today. Traders, in the meantime, await the Federal Reserve's upcoming monetary policy decision and the release of the revised Summary of Economic Projections.
XRP soars upon announcement that SEC will drop its appeal against Ripple
Ripple CEO Brad Garlinghouse announced on Wednesday that the Securities and Exchange Commission (SEC) has dropped its appeal against the company. XRP is up 12% in the past 24 hours as market participants have reacted positively to the announcement.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.