ECB’s Villeroy: Trump tariffs pause is less bad news but still bad news

Forex Short News
  • Glad that Europe has kept its cool during talks with Trump administration
  • There is room for talks in the coming 3 months on tariffs
  • Protectionism remains a bad element for the US economy
  • Trump policies in recent weeks have eroded confidence in the US dollar

He’s just summarising the events since overnight. At least with this, there won’t be a debate on whether a 50 bps rate cut is needed next week. A 25 bps rate cut is still in the bag, with traders pricing in ~94% odds of that currently.

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