• Will respond along with Europe to Trump’s tariffs
• Could target digital services in reciprocal measures
• First response likely to be in mid-April, then another one in late April
• Fairly certain Trump tariffs will have a recessionary impact in certain areas

The retaliation is the next thing to watch out for, then any further escalation if Trump feels like it. All of this is presenting a lot of anxiety and uncertainty to markets at the moment. The euro has been a standout performer despite this, with EUR/USD up 0.8% to 1.0945 currently. The pair is now contesting the March highs with the dollar being pummeled after the retracement following Trump’s announcement.

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