Pound Gains, Yen Weakens as Markets React to Trump’s Tariff Concerns

The British pound is leading gains in the currency market today, while the Japanese yen lags behind. Meanwhile, European equities are in the red, and U.S. stock futures are dipping slightly. The cautious market sentiment stems from ongoing concerns over former U.S. President Donald Trump’s tariff policies.

Markets Respond to Tariff Uncertainty

The dollar initially strengthened in Asian trading but lost momentum as European markets took over. Currently, EUR/USD is hovering around 1.0785 after briefly dipping to 1.0750, while USD/JPY is up 0.2% at 150.90, supported by rising bond yields. Meanwhile, GBP/USD has climbed 0.4% to 1.2935.

Against commodity currencies, the dollar is trading mixed. It has edged up 0.1% against the Canadian dollar, with USD/CAD at 1.4275. Canada is among the countries affected by potential U.S. auto tariffs, alongside Mexico, Japan, and South Korea. Despite risk aversion, AUD/USD has managed to rise 0.3% to 0.6315.

Commodities and Equities Show Mixed Signals

In equities, European markets remain under pressure, with Germany’s DAX seeing the steepest losses due to its exposure to auto tariffs. U.S. stock futures were mostly flat earlier but have started trending lower.

Gold continues to rally, climbing 1% to $3,050.54—just shy of its record high of $3,057. Economic uncertainty and tariff concerns are keeping the precious metal in demand. In contrast, oil prices have softened, with WTI crude down 0.3% at $69.41. Bitcoin is also slightly lower, slipping 0.3% to $86,968.

Looking ahead, market focus remains on U.S. economic data, including weekly jobless claims and Q4 final GDP. However, all eyes will be on tariff developments as the April 2 deadline approaches.

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