HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Markets hold their breath for ‘Liberation Day’


2 April 2025

Raffi Boyadjian   Written by Raffi Boyadjian

‘Liberation Day’ is upon us

The so-called ‘Liberation Day’ has finally arrived, and it is probably the biggest day so far in US President Trump’s second term. Speculation is rife, with a plethora of reports, sometimes quite contradictory, about what Trump is going to announce today, at the new time of 20:00 GMT.

An array of scenarios is circulating, with the key ones being three: (a) a universal tariff applied to all imports regardless of their origin; the level of the tariff could be as low as 10% or as high as 25%, (b) different tariffs imposed on different countries based on the trade imbalances, which means that Canada and China will probably be more heavily penalized compared to other countries that have smaller trade surpluses with the US, and (c) industry-based tariffs, similar to the recently announced tariffs on car imports.

Trump has the option to mix and match the above scenarios if he wishes to punish countries such as China. Additionally, according to Secretary of the Treasury Bessent, the announced tariffs could also act as a cap, with the affected countries being able to lower them by meeting Trump’s demands. It is not known at this stage if Denmark will be asked to hand over Greenland to avoid tariffs.

Interestingly, there is also the question of the start date of these tariffs. Trump could announce the immediate imposition of these trade restrictions or postpone them for a specific period of time, such as one month, as he did with the auto part imports, also giving time for further negotiations with the targeted countries.

Markets want clarity but crave a softer stance by Trump

Markets are in anticipation mode, fearing the worst-case scenario of very harsh tariffs announced. Investors, though, are hoping that, at the nick of time, Trump might opt for low level tariffs, even if this stance is accompanied by an outright threat by Trump of much harsher trade restrictions down the line if the affected countries fail to conform to his demands.

Risk appetite is in desperate need of a boost, particularly as US equity indices have fully surrendered their post-US presidential election gains, and the Nasdaq 100 index is hovering almost 13% below its mid-February 2025 highs. On the flip side, the dollar's reaction to today’s tariff decisions is a slight mystery, as a harsher set of trade restrictions could also result in another episode of dollar weakness against the euro.

Interestingly, both gold and oil are preserving their recent gains but are expected to follow divergent trends later today. Gold has been boosted by uncertainty and continued dollar weakness, and it is expected to remain mostly supported by the possibility of a full-blown trade war. On the other hand, oil could suffer if today’s announcements significantly increase the chances of a global growth slowdown and/or a US recession.

Key US data ahead of Trump’s announcements

Ahead of the tariff announcements, the calendar is busy with key US data. Following yesterday’s weak March ISM manufacturing PMI, stagflation is firmly back on the table. Both the employment and new orders components retreated further into contractionary territory, and the prices paid component surged to the highest level since June 2022.

With most Fed members highlighting that “hard data” is still pretty solid, the focus shifts to the ADP employment report. Economists are forecasting a 115k increase in private payrolls, up from the 77k jump recorded in February, which was the weakest rise since January 2021. A soft report could increase the chances of a May 7 Fed rate cut, but mostly bring forward the next fully-priced-in rate cut to June.

By XM.com

#source


RELATED

Dollar on the back foot as Trump alters his rhetoric

Trump sends mixed signals about tariffs again; Improved risk appetite weakens, stocks surrender gains; US data and Treasury note auction in the spotlight; Both gold and oil struggle to find their footing.

24 Apr 2025

Risk sentiment retreats as Trump prepares for fresh tariff decisions

The positive start to the week in risk sentiment is gradually reversing, as US President Trump maintains his tariff rhetoric.

16 Apr 2025

Improved risk sentiment to be tested as Trump paves way for fresh tariffs

Electronic tariffs in the spotlight, risk appetite gets a small boost; Trump could dampen sentiment with fresh tariff decisions; US equities record best weekly performance since 2022.

14 Apr 2025

Risk aversion returns. Dollar, Treasuries and Wall Street slip

The US dollar continued to tumble against all its major peers on Thursday and during the Asian session on Friday.

11 Apr 2025

Wall Street stages impressive rally amid tariff pause

Wall Street skyrocketed yesterday, with the S&P 500 recording its biggest winning day since the Great Recession and the tech-heavy Nasdaq rallying more than 12%, the most since 2001.

10 Apr 2025

Stocks suffer as Trump's increased tariffs take effect

Reciprocal tariffs kick in, risk sentiment takes another hit; China faces 104% tariff, its response is awaited; US equities remain under severe pressure, dollar suffers; Gold and bitcoin recover; oil remains in recession-signaling territory.

9 Apr 2025

Stock markets crash, but Trump appears relaxed

US equity indices enter bear market territory; China retaliates, while Europe is still discussing its response; Pressure on the Fed to save the day; Powell is not giving in yet; Gold, oil and bitcoin suffer considerable losses.

7 Apr 2025

Gold Shatters Records: Prices Set to Climb Even Higher

On Monday, gold surged to a historic $3,115 per troy ounce, marking another milestone in its relentless rally. Analysts predict further gains as multiple bullish factors converge.

31 Mar 2025

Equities react negatively to Trump's new car tariff surprise

Trump announces car tariffs, prepares ground for April 2 deadline; US equities suffer; European equities could be under severe pressure; Dollar gets a small boost against euro and yen; Gold and oil maintain most of their recent gains.

27 Mar 2025

Risk appetite recovers as April 2 tariff deadline approaches

Both US equities and the dollar continue to recover; US consumers are under stress, as the April 2 deadline is approaching; Pound suffers from weaker inflation; all eyes on the Budget update; Gold, oil and bitcoin move in sync;

26 Mar 2025

Trump plans narrower April 2 tariffs

Dollars ends the week in the green. Traders still bet on third rate cut - Trump to announce narrower, more targeted tariffs on April 2 - Euro pulls back. Wall Street set to open higher after tariff-related reports.

24 Mar 2025

Markets like Fed's message, but will this last?

Fed keeps rates unchanged as Chair Powell calms markets. Forecasts point to stagflation and 50bps cuts in 2025. Positive equity reaction, but Trump's rhetoric could reverse sentiment.

20 Mar 2025

Fed and BoJ rate decisions enter the limelight

The dollar extended its slide against all but one of its major peers on Monday, gaining some ground only against the Japanese yen. Today, the greenback is holding steady, extending its advance against the yen.

18 Mar 2025

The calm before the storm for the markets?

Following a tumultuous period, which had all the ingredients of a full-blown market crash, there has been slightly more positive sentiment among market participants since Friday.

17 Mar 2025

Trump continues to dampen risk appetite

After almost two months in office, US President Trump remains the biggest risk factor. His inconsistent tariff strategy and fierce rhetoric continue to cast a shadow over markets, particularly US equities.

12 Mar 2025

US stocks continue to vote down Trump's tariff strategy

Trump retracts tariffs on its closest trading partners; Both US equities and the dollar continue to suffer; ECB cuts rates but the euro keeps shining; Oil and cryptos remain under stress.

7 Mar 2025

New month, old habits for Trump as equities suffer

Risk assets have started the new month off on the wrong foot, as US President Trump has announced the imposition of the next round of tariffs.

4 Mar 2025

Markets try to find their footing after a risk-off session

Tariff talk and weak US data fueled a risk-off reaction. Nvidia earnings may test market's risk appetite.

26 Feb 2025

Dollar starts the week on the front foot

Lengthy negotiations to follow German election result. Both the euro and German stocks gain, but outlook remains clouded.

24 Feb 2025

Dollar benefits from weak risk appetite

Despite US President Trump adopting a more relaxed approach this week on the issue of tariffs, market participants remain concerned about what lies ahead.

21 Feb 2025


Editors' Picks

How to Choose the Best Forex Advisor 2025

Key Factors to Consider When Choosing a Forex Advisor. Risk Management. Fees and Costs. Compatibility with Your Trading Style.

Automating Success: The Benefits and Risks of Using Forex Expert Advisors

This article explores the benefits and risks associated with using Forex Expert Advisors, providing insights into how traders can maximize their potential while mitigating potential downsides.

Best Forex Brokers 2025

By prioritizing factors such as overall rating, regulatory compliance, trading conditions and platform reliability traders can make an informed decision that aligns with their trading needs and aspirations, setting the stage for a potentially prosperous trading journey.

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

Best Forex EAs – Forex Expert Advisors Rating

Expert Advisors (EAs) Rating features high-quality Free and paid Forex EA most popular on the market today.

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.