EUR/USD back below 1.03 this morning as China tariffs kick-in

As just mentioned in the previous update, the US trade tariffs against China have come into effect today. Trump might have let Canada and Mexico off the hook yesterday, but he has not done so with China. The Chinese stock markets are still closed today for the week-long New Year holidays, so gauging what the reaction there might have been is not easy, but once again the Hong Kong markets are open and higher once more. China has announced retaliatory moves against the US today. Now yesterday the news that surprised the markets was that CAMEX reprieve and that lifted the whole risk dynamic. As reported, that news sent the EUR/USD spiking above 1.03 and it later rose to 1.0350 ahead of the US close. The EUR/USD later closed at 1.0344. However, the Euro has fallen back today on this China news and earlier dropped to 1.0272. The outlook for Trump to move against Europe remains very much on the table. The EUR/USD is currently trading at 1.0296 and there will be much more to add as the day unfolds