LIVE MARKETS-Some simulations on possible forex moves

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SOME SIMULATIONS ON POSSIBLE FOREX MOVES

Markets have debated for weeks about whether President Trump's policy promises about tariffs were serious or just a negotiation tool.

As Barclays analysts put it, "Saturday's announcement was one indicator that in Trump 2.0, President Trump might just mean what he says and says what he means."

In three executive orders, Trump imposed 25% tariffs on Mexican and most Canadian imports and 10% on goods from China, starting on Tuesday. He vowed to keep the duties in place until what he described as a national emergency over fentanyl, a deadly opioid, and illegal immigration to the U.S. ended.

It is difficult to calibrate currency moves in a complex situation where the severity and duration of tariffs, retaliatory measures, and policy offsets are highly uncertain.

However, some "simulated forex moves" drafted a few hours before Trump's decision could help indicate what markets are currently pricing in.

Trump imposed only a 10% duty on energy products from Canada.

National Foreign Trade Council President Jake Colvin urged the U.S., Canada and Mexico to find a quick solution to avoid escalation.

(Stefano Rebaudo)

MONDAY'S OTHER LIVE MARKETS POSTS:

EUROPE BEFORE THE BELL: TRADE WAR UNDERWAY CLICK HERE

TRUMP TARIFF REALITY UNNERVES MARKETS CLICK HERE