The greenback is down across the board to start the session, finding little relief as Trump’s reciprocal tariffs come into effect. The dismal US labour market report on Friday last week is setting the tone now for Q3, with further weakness in jobs data expected.
EUR/USD is up 0.2% to its highest since last Monday and on approach to the 1.1700 mark now. Of note, much of the late July decline has already been erased.
Meanwhile, USD/JPY is now back lower by 0.3% to 146.85 after having run up to 147.70 earlier in Asia trading after some confusion about Japan’s 15% tariffs. Tokyo is of the view that the 15% rate is a ceiling but the US camp is claiming that it is an additional tariffs rate to all existing products. That tells you all you need to know about these framework agreements that the US have struck with many countries. Nothing is a given and nothing is set in stone.
Elsewhere, GBP/USD is also pushing back above both its key hourly moving averages and is up 0.1% to 1.3370 while AUD/USD is also tracking higher by 0.3% to 0.6520 currently
