The looming reciprocal tariffs from the US are scheduled to start on April 2 and now Trump has hinted at some flexibility on the introduction. Trump has hinted, that some goods and services and perhaps particular countries, may be exempt. This was enough to boost market confidence and US equities. The US Dollar continues to recover, pushing the EUR below 1.0800, while the GBP tests under 1.2900. Inflation readings from Australia and the UK will be of keen interest to markets, in the light of a resurrection of inflation, in many economies.The commodity currencies continue to suffer the rejuvenated reserve, with the AUD falling back to 0.6350, while the NZD may test the downside of 0.5700. PMI data across Europe and the US were mixed but showed some improvement in Australia. Look for tariff talk to dominate market direction.
