‘Liberation Day’ is upon us and markets are reacting accordingly. European bourses are crashing in the face of Trump’s ‘Liberation Day’, which is the day (April 2nd), that all of the US tariffs come into effect. These include a 25% tariff on all non-US manufactured auto’s, while full implementation of reciprocal tariffs also begin. This will be a bit of a blood bath initially, but it is likely to be modified, as Trump has spoken of leniency. It is dominating markets, both Asian and European. The US Dollar has remained firm, with the EUR trading around 1.0800, while the GBP clings to 1.2900.Commodity currencies are also feeling the effects of the new tumult in markets, with the AUD falling back to 0.6220. while the NZD slumped to 0.5650. The RBA meets today, for the latest interest rate decision (IRD) and they are expected to hold. The goods news on the inflation front green-lights further rate cuts, but tradition in Australia is to hold rates before a Federal Election, called for May 3rd.
