The EURUSD and the GBPUSD are higher after initial dips after the auto tariff announcement by Pres. Trump early in the new trading day, did not find follow through selling. For the EURUSD, it ran into some key support. The post from yesterday highlighted that key support. Watch the video above to see what levels are key in your trading today.

The USDJPY fell in the Asian session but has since moved higher with US yields moving higher and the prospects of less chance for a BOJ hike if tariffs are to slow economic growth in Japan..

Stocks are mixed in premarket trading with the Dow up modestly, the S&P down modestly and the Nasdaq down modestly as well.

Yes....the trade tensions are heightened after President Trump announced that 25% tariffs will be imposed on all cars not made in the United States, with enforcement starting April 2 and collections beginning April 3. He emphasized that these tariffs are permanent and intended to help reduce national debt. Reciprocal tariffs on other countries will also go into effect on April 2, though he noted they will be more lenient and, in many cases, lower than those imposed on the U.S.

Trump assured that cars made in America, or those with American-made parts, would not be subject to these tariffs. He also stated that there would be strong enforcement of these rules. Elon Musk was not consulted on the auto tariffs, though Trump mentioned that major automakers are supportive, especially if they have factories in the U.S. The potential impact on Tesla (TSLA) remains uncertain, but Trump hinted that tariffs could be neutral or even favorable for the company.

Canada responded strongly to President Trump's tariff announcement, with Prime Minister Carney calling it a direct attack on Canadian workers and vowing to defend the country. He plans to convene a high-level meeting to discuss trade options and indicated that while tariffs will hurt Canada, the country will emerge stronger. Carney stated that Canada would take retaliatory steps if necessary and that Ottawa is prepared to introduce such measures soon. He also mentioned that he expects to speak with Trump in the near future. Ontario Premier expressed full support for the federal government’s plans, emphasizing that Canada must stand firm and united. He advocated for imposing maximum pain on Americans through tariffs without harming Canadians, underscoring that Canada will never back down

Trump countered and warned on Truth Social that "If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!"

In Japan, they has voiced strong concern over the newly announced U.S. tariffs, warning they could significantly impact not only U.S.-Japan economic relations but also global trade and the multilateral system. Chief Cabinet Secretary Yoshimasa Hayashi highlighted the broad scope of the tariffs, cautioning that they pose risks to Japan’s export-driven economy, particularly in the auto and technology sectors. While Japan has not yet proposed any direct countermeasures, Tokyo is monitoring the situation closely and is expected to raise the issue diplomatically.

The tariffs also cast doubt on the likelihood of a Bank of Japan rate hike in May, as the economic hit—especially to Japan’s vital auto industry—could weigh heavily on upcoming data (hence a weakness in the JPY today)..

Central bank comments overnight:

• ECB's Wunsch warned that the central bank is facing a difficult balancing act, as tariffs could harm the economy and fuel inflation. He suggested that a policy pause should be considered in April, especially given the uncertainty around the recent German fiscal measures and potential upside inflation risks.
• ECB's Kazaks indicated that rate cuts could continue if current economic conditions hold, though he emphasized that high uncertainty—mainly driven by geopolitical factors—remains a significant concern.

The spaghetti is being moved around the plate at a fast rate, with the Trump nationalism/isolationism vs the old "globalization" idea being the major theme. The implications of the changes are unknown although the markets will attempt to decide. Along the way, the chance that spaghetti falls off the plate is increased creating more volatility.

Speaking of, looking at snapshot of some of the current market levels to start the new trading day in the US, see the US stock futures implying a mixed open:

• Dow industrial average +8.2 points
• S&P index -8.7 points
• NASDAQ index -50 points

in the US debt market, the US treasury yields are higher

• 2 year yield 4.018%, +1.1 basis points
• 5-year yield 4.116%, +2.8 basis points
• 10 year yield 4.381%, +4.3basis points
• 30 year yield 4.737%, +5.4 basis points

In other markets to start the US trading day:

• Crude oil is trading down seven cents or -0.10% at $69.58
• Spot gold is trading up $31.44 or 1.05% at $3050.55
• Silver is trading up $0.41 or 1.23% of 34,004 cents
• Bitcoin is trading little changed at $86,964