Kickstart the FX trading day (and week) with a technical look at EURUSD, USDJPY and GBPUSD

The video above outlines the technical levels driving the three major currency pairs – the EURUSD, USDJPY and GBPUSD.

The USD is higher by over 1% vs the EUR and 0.61% vs the GBP. Against the JPY, the USD is lower (the only currency the USD is lower vs as the market reacts to the traditional risk-off sentiment.

The USD is higher by 1.03% vs the CAD and the ADU and up 1.31 vs the NZD. Below are the changes of the major currency pairs vs the USD.

Of course the tariff news is dominating with Pres. Trump imposing:

• 25% tariff on Canada and Mexico goods but only 10% on Canada energy imports
• 10% on China goods

From Canada, they would retaliate with:

• $20B from Canada and will be targeting American beer, wine and bourbon, as well as fruits and fruit juices, including orange juice from Trump’s home state of Florida. Canada would also target goods including clothing, sports equipment and household appliances
• $85B for 2nd round including tariffs on autos.

Trump has said he will be talking with the leaders of both Canada and Mexico today before the tariffs go into effect at midnight tonight.

The Pres. wants the border closed to Fetanyl which the Pres says kills 200,000 Americans each year (Kevin Hassett is saying 100,000 on CNBC now). Below is the fentanyl seized at the respective borders in 2024. Of course, this is the amount seized not the amount that makes it in the country:

That addresses the supply. My wonder is where is the discussion on the demand? Why isn’t there a focus on stopping the demand for a drug that is multiple times more powerful than morphine?

US stocks are sharply lower in the pre-market.

• Dow -661.66 points after falling -337.47 (-1.42%) or -0.75% on Friday, but rising 2.69% for the week
• S&P is down -102 points after falling -30.64 points (-1.62%)or -0.50% on Friday and down -1.00 for the week
• Nasdaq -412 points (-1.86%) after falling -54.31 points or -0.28% on Friday and falling -1.64% last week.

In the US debt market, the US 2 year is marginally higher, while being lower out the the curve:

• 2 year 4.2448%, +0.7 basis points
• 5 year 4.329%, -3.7 basis points
• 10 year 4.508%, -5.8 basis points
• 30 year 4.737%, -7.4 basis points

In other markets, oil is higher, gold is pushing against record levels (as risk off sentiment drives the price higher). Bitcoin is a risk off loser:

• Crude oil is up $1.86 or 2.56% at $74.39
• Gold is trading up six dollars or 0.21% at $2803.50
• Bitcoin is trading at $95,400. That is down sharply from Friday’s closing level of $102,412.

This article was written by Greg Michalowski at www.forexlive.com.