What are the most important data today and the impact of tariffs
We don't have any important data today to move the markets, but the market's focus right now is not on the data, but on the news of tariffs before their deadline tomorrow.
The Japanese yen and the Swiss franc settled near their highest levels in six months on Tuesday as safe haven currencies, despite some declines yesterday, the US dollar also remains on a slight decline as recession fears increase in the wake of comprehensive tariffs imposed by Trump.
The dollar has recovered some of its losses against safe haven currencies since the markets opened yesterday.
While the US dollar is usually known as a safe haven, this idea is starting to decline as the uncertainty over tariffs increases, raising fears that US economic growth will falter.
Investors are betting that the increased risk of an economic slowdown could lead to a cut in US interest rates as early as May, and with more monetary easing expected this year.
Global stocks have also fallen sharply since Trump announced the tariffs last week, and China and the European Union quickly responded with tariffs on the United States, which Trump, in turn, threatened to counter with higher tariffs.
The Chinese are especially watching after Trump's threat to impose additional tariffs of 50% starting tomorrow if China does not back down from the last retaliatory tariffs it imposed, and if China escalates its measures, we may see further losses in the markets.
On the other hand, the New Zealand dollar (NZDUSD) rose by more than 1% to reach 0.5620 US dollars before the monetary policy meeting at dawn on Wednesday, where the Central Bank of New Zealand is expected to cut interest rates from 3.75% to 3.50%.
