Moves in the Canadian dollar and risk-sensitive currencies including the Australian dollar, Norwegian krone, and Swedish krona suggest markets are complacent about U.S. tariffs, MUFG Bank’s Derek Halpenny said in a note.
The currencies outperformed Tuesday, which hardly signals tariff concerns and rising risks of global trade disruptions, he said. “We believe the financial markets are underestimating the scale of action.”
Riskier currencies could fall if the U.S. delivers a more aggressive tariff plan than markets are fearing. Trump announces his reciprocal tariff plans at 4 p.m. Eastern time.
