Markets take the tariffs implementation in stride so far

USD/CAD did briefly spike to a high of 1.4520 but is now back down to 1.4495, the same levels it has been holding since the latter half of Asia trading. Meanwhile, USD/MXN also jumped above 20.80 briefly before settling around 20.75 currently. US futures are also barely reacting, with S&P 500 futures seen up 0.3%. The overall reaction has been minimal but then again, most of it would have been priced in yesterday and the damage was already done.

As for the dollar itself, it also suffered in trading yesterday but is keeping steadier so far today. EUR/USD is lightly changed at 1.0480, still unable to crack through key resistance at 1.0500. Meanwhile, USD/JPY is down 0.1% to 149.30 with the January low of 148.63 still very much holding for now.

While the risk mood is holding up for now, we’ve seen many a time over the last week how things can come tumbling down in US trading. And yesterday was another case in point as the selloff turned rather ugly especially late on. The Nasdaq is now going up against a test of its 200-day moving average and that’s a big one to watch on the charts:

This article was written by Justin Low at www.forexlive.com.