EU Commission President Ursula von der Leyen has suspended planned tariffs on US products for 90 days, following a US call for a pause on reciprocal tariffs, to allow time for negotiations. Friedrich Merz, Germany’s likely next chancellor, supports dialogue but stresses the EU’s readiness to protect its interests, noting that Trump’s unpredictable approach has created uncertainty and criticism in the US. Bloomberg economists predict a 25bps ECB rate cut on April 17, expecting US tariffs to reduce euro area demand and inflation, with markets anticipating 75bps in cuts over the year. Key standouts on Friday’s calendar come from German inflation data, UK GDP, trade, industrial production, construction output, an ECB Lagarde speech, US producer prices, Michigan sentiment, and Fed speak.

Then Yen has extended its run against the US Dollar amid escalating US-China trade tensions. The US Trade Secretary attributed Yen strength to Japan’s robust economic growth and inflation expectations, suggesting BOJ rate hikes are natural. Japan faces potential US pressure to raise rates in upcoming trade talks to address Yen weakness and trade imbalances, with markets pricing in minimal BOJ hikes but higher odds if tariffs are moderated. Recent strong Japan PPI data (4.2% YoY vs. 3.9% forecast) supports rate hike speculation. Japan’s strategic importance and Trump’s appointment of key negotiators could lead to lenient tariff terms, with traders eyeing more Yen gains if a favorable deal emerges. Key standouts on Friday’s calendar come from German inflation data, UK GDP, trade, industrial production, construction output, an ECB Lagarde speech, US producer prices, Michigan sentiment, and Fed speak.

The Australian dollar has benefited from broad based currency demand but faces pressure as a risk-sensitive currency amid ongoing US tariffs on China, Australia’s key trading partner. But at least for now, fears of revisiting its COVID-era low of 0.5510 have eased. The yuan’s stable fixing at 7.2087 signals China’s intent to avoid sharp devaluation, prioritizing global stability over tariff countermeasures. Meanwhile, RBA Governor Bullock has resisted calls for a 50 basis point rate cut in May, emphasizing a cautious approach to US tariff impacts and noting Australia’s resilient financial system, with market volatility expected but economic fallout limited compared to 2008. Key standouts on Friday’s calendar come from German inflation data, UK GDP, trade, industrial production, construction output, an ECB Lagarde speech, US producer prices, Michigan sentiment, and Fed speak.

We’ve seen a surge in demand for the Canadian Dollar on the back of President Trump’s 90-day tariff pause. The resulting development has translated to broad based risk on flow and concurrent surge in the price of oil. Meanwhile, PM Carney has been helping the Canadian Dollar this week as well, after pledging to make Canada an energy superpower. Key standouts on Friday’s calendar come from German inflation data, UK GDP, trade, industrial production, construction output, an ECB Lagarde speech, US producer prices, Michigan sentiment, and Fed speak.