The flexibility of the market challenged by the Trump tariff at the weekend

(Bloomberg) – The financial markets, which showed the lack of sensitivity of the tariffs from the United States, will face a test in the Monday’s open championship after President Donald Trump announced a 30 % average of the European Union and Mexico as of August 1.

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Trump submitted commercial measures, and promised that more definitions come to everyone from Canada to Brazil to Algeria and invite commercial partners for further negotiation. Despite the warnings of the likes of JPMorgan Chase & Co. CEO Jimmy Damon, investors have so far spent as if they were dependent on the US President to retreat, after they saw a previous turn of his administration.

“Investors should not be a need for Trump only to deceive with a 30 % tariff threatening on European Union goods,” wrote Brian Jacobsen, the chief economist at Annex Wealing Management, in an email. “This level of definitions is punitive, but it is likely to hurt them more than the United States, so the watch beats.”

Bitcoin (BTC-Usd), Which is trading during the weekend, rose to $ 119,489 in early trading on Monday, which is a new record.

Currency markets suggested that the appetite of risk began to fade, with the Japanese dollar and yen rising at the top of most of their peers from a group of 10 in early trading while the Australian and euro dollar led the losses. The euro touched its strongest level against the dollar since 2021 this month, as investors evaluated the relative growth prospects in the region. Meanwhile, the Mexican Biso set the highest level in one year 18,5525 against the dollar on July 9.

President Trump’s criticism and allies may lead to Jerome Powell dealing with expensive renewal of the Federal Reserve headquarters – as some administration officials built a case to remove Powell from the Governor Council at the Federal Reserve Bank – also on the markets at the beginning of the week.

George Saravilus, a Deutsche Bank strategic expert, said the potential dismissal of a height is a major and heterogeneous risk that can lead to a sale in the US dollar and the treasury.

“If Trump has forced Powell to go out, it is likely to witness 24 hours after a decrease of at least 3 % to 4 % in the likely dollar, in addition to selling a fixed income from 30 to 40 points, Saravilus said.

He said in a note: “Greenback and Bonds will carry a” ongoing “risk bonus, adding that investors may get more concerned about the potential politicization of the FBI exchange lines with other central banks.