Market swings on headlines shows “how on edge everyone is around tariffs”

It was a wild last few minutes of the New York FX session with conflicting headlines on tariffs:

I posted a bit of a recap summary here:

• USD/CAD spiked near a 5-year high as Trump said Canada and Mexico tariffs coming Saturday

Reuters contacted Adam for his take:

• “Confusion reigned for a few minutes on the headlines,” said Adam Button, chief currency analyst at ForexLive, adding that there was an initial impression among traders that Trump was in the process of signing executive orders on the tariffs which led to a brief bout of market panic.
• “Later, as it became clear as he was once again threatening tariffs, much of the move faded but not all of it. The market reaction shows how on edge everyone is around tariffs,” Button said.

Trump later dropped in China tariff comments, and the swings continued:

• Trump says China is going to end up paying a tariff as well

I’ve posted a CAD update, here’s AUD, caught in the crossfire:

This article was written by Eamonn Sheridan at www.forexlive.com.