Europe Summary and Highlights 26 November

European morning session

The USD was generally weaker through the European morning after making gains overnight on the Trump announcement of tariffs on Canada, Mexico and China. EUR/USD gained around 40 pips to 1.0520, while USD/JPY lost around 30 pips to 153.75. The EUR also gained ground on most European crosses, with EUR/CHF up around 15 pips, EUR/GBP around 10 pips, and EUR/NOK around 5 figures. EUR/SEK bucked the trend, dropping a figure to 11.53. The CAD and MXN, which had been the main victims of the USD gains after the Trump announcement, also made modest gains, but remained substantially below the pre-announcement levels, while the other majors were essentially back to pre-announcement levels.

There was little news of any note during the morning.

Asia session

As Trump mentioned he will be placing a 25% tariff on Canadian and Mexican goods, another 10% for Chinese ones, major currency are sinking against the USD, except JPY. The JPY is benefiting from the sour sentiment to trade 0.33% lower at 153.66 session low with bond yields performing individually.

Risk sentiment tanked in early Asia after Trump’s tariff headline as just major FX slumped against USD. As session progress, the broad sentiment improves but remain sour. China respond mildly by suggesting no one will win a trade war, instead of immediately respond with tariff retaliation threat. AUD/USD sunk to 0.6434 before retracing to 0.6491 now, down 0.21% for the session, NZD/USD moves similarly to trade 0.05% lower at 0.5842 while USD/CAD rose 0.87% as it bear the blunt of potential tariffs. Else, EUR/USD is down 0.17% and GBP/USD is down 0.15%.