After Monday’s wild market swings triggered by Trump’s new tariffs, markets are showing signs of stabilization early Tuesday. The U.S. Dollar (USD) initially surged on risk aversion following Trump’s announcement of 25% tariffs on Canada and Mexico and 10% on China but later reversed gains after Trump postponed tariffs on Canada and Mexico for 30 days.
In Asia, China retaliated with 15% tariffs on U.S. coal and LNG imports, along with additional 10% levies on crude oil, farm equipment, and automobiles, keeping markets cautious. U.S. stock futures dipped 0.2%, while the USD Index hovered just below 109.00.
In forex markets, EUR/USD rebounded from early losses but struggled near 1.0300, while GBP/USD remained steady around 1.2400. USD/CAD hit a 21-year high of 1.4800 before retreating to 1.4450, and USD/MXN saw a sharp reversal after touching 21.2950, now steady at 20.3435.
Gold surged to a record high of $2,830 on Monday before retreating slightly but remains strong above $2,810. Investors now shift focus to U.S. JOLTS Job Openings data and Federal Reserve speeches, which could influence market direction further.


