Liberation Day: FX Implications

Talking through USD, EUR and CAD reactions.

President Trump uses the term “Liberation Day” to describe April 2nd, most notably regarding the pending reciprocal tariffs slated to come into force that day.

The U.S. dollar has traded fairly sideways over the past couple of weeks in the lead-up to the day despite potentially market-moving headlines appearing almost daily.

Today, we wanted to muse on some of the FX implications for different currencies ahead of the big day.