Dear Reader,

Today's overview of economic news and market action: 

• The cautious tone to investor sentiment persisted yesterday …
• Remarks by Fed officials, US data & corporate earnings reports impacted sentiment …
• Notably, Fed Chair Powell stated that tariffs are likely to be inflationary …
• In level terms, EUR/USD opens today in the top half of $1.13-1.14 …
• GBP/USD is back in the lower half of $1.32-1.33 …
• EUR/GBP is changing hands up near the 86p handle …
• Today, the ECB is widely expected to cut rates by 25bps …

All rates quoted are indicative market rates.

Following a tumultuous week on financial markets, with President Trump unwinding some tariff measures and ratcheting up others, uncertainty abounds, with little clarity on the future path of policy. However, as we discussed in our Weekly publication last Friday, the markets have found the pain threshold for the Trump administration and have potentially set a guardrail on future policy