ECB Villeroy cautiously welcomed President Trump’s 90-day tariff pause but noted US unpredictability still hampered the growth outlook. Meanwhile, BNP Paribas’ chief economist urged the EU to focus on domestic growth via single-market investments rather than retaliation. ECB Holzmann suggested pausing rate cuts in April due to trade uncertainty, despite markets expecting a cut. And a UK-EU defense pact eyes a May 19 completion date to bolster European security amid US policy shifts. Finally, ECB Cipollone was out pushing for digital euro and cash regulations to reduce reliance on foreign payment firms. As far as today’s economic calendar goes, key standouts come from US initial jobless claims and inflation data.

President Trump’s erratic tariff policies have undermined the dollar’s safe-haven status, boosting the Yen as a consequence. Japan PM Ishiba aims to leverage Trump’s pause on reciprocal tariffs to negotiate better terms on steel and auto levies, banking on Japan’s strategic alliance and investment in the US, with key appointees Bessent and Greer leading talks. Bloomberg Economics has warned that if the 24% tariffs and 25% auto levy resume, Japan’s GDP could drop by 0.9%, while OIS markets now see little chance of rate hikes this year. As far as today’s economic calendar goes, key standouts come from US initial jobless claims and inflation data.

The Australian Dollar rebounded from a year-to-date low after President Trump’s tariff pause eased risk aversion. Despite levies persisting on China, and Trump’s unpredictable tariff stance, the risk of deeper setbacks in 2025 has eased for now. In fact, there have been some strategists making a bullish case for the Australian Dollar, citing China’s stimulus boosting commodity demand and US economic self-harm from tariffs. There is support for this view via CME data showing call options doubling puts. Meanwhile, Treasurer Chalmers has convened top economic leaders to mitigate global volatility. Speculation has been growing for a potential 50 basis point RBA cut in May. As far as today’s economic calendar goes, key standouts come from US initial jobless claims and inflation data.

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 as well, after pledging to make Canada an energy superpower. As far as today’s economic calendar goes, key standouts come from Canada building permits, US initial jobless claims and US inflation data.