logo
Trump's Tariffs Make Currency Trading Cool Again After Years of Decline

Trump's Tariffs Make Currency Trading Cool Again After Years of Decline

Bloomberg10-02-2025
In the decade Tim Brooks has been buying and selling currencies, he's grown used to feeling that the action is usually elsewhere. He and his team at Optiver Holding BV, a top trading firm in London, rely on volatility to generate quick profits from sudden moves in exchange rates. But dramatic swings largely evaporated after the global financial crisis of 2008, when the biggest central banks began cutting and then raising interest rates more or less synchronously. Occasional bursts of excitement notwithstanding—such as last year's surge in the Japanese yen following a surprise interest-rate hike—currency trading ceded the spotlight to the stock and bond desks.
That changed after Donald Trump was reelected US president on pledges to shake up global trade. The Canadian dollar and the euro suddenly started gyrating with each trade threat, slumping when it seemed penalties were imminent and rallying when Trump announced a reprieve. And as the dollar has strengthened, the Federal Reserve has decoupled from other central banks, signaling it will keep rates steady even as others continue cutting.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

RBC Capital Cuts Algoma Steel (ASTL) PT to C$8 Following Q2 Net Loss
RBC Capital Cuts Algoma Steel (ASTL) PT to C$8 Following Q2 Net Loss

Yahoo

time24 minutes ago

  • Yahoo

RBC Capital Cuts Algoma Steel (ASTL) PT to C$8 Following Q2 Net Loss

Algoma Steel Group Inc. (NASDAQ:ASTL) is one of the most promising penny stocks under $5. On July 31, RBC Capital lowered the firm's price target on Algoma Steel to C$8 from C$10, while maintaining a Sector Perform rating on the shares. Prior to this decision, the company released its Q2 2025 earnings. Algoma Steel Group reported a net loss of $110.6 million, which was a sharp contrast to the net income of $6.1 million in the prior year's quarter. Adjusted EBITDA was a loss of $32.4 million, which reflected a negative margin of 5.5%. This was driven by a 10.5% year-over-year decline in steel revenue to $534 million, as well as lower steel shipments of 472,000 net tons, down 6.2% from the previous year. A factory worker operating a machine that processes steel products. The average net sales realization was $1,132 per ton, a decrease from $1,187 per ton in the prior year period, while the average cost per ton of steel products sold increased by 7% year-over-year to $1,144. A major factor contributing to the financial downturn was $64 million in direct tariff costs on outbound steel shipments to the US, which is a market now effectively closed to Canadian steel producers due to prohibitive tariffs. The company also reported ending the quarter with inventories valued at $736 million, a decrease from $800 million in the prior year quarter. Algoma Steel Group Inc. (NASDAQ:ASTL) produces and sells steel products in Canada, the US, and internationally. While we acknowledge the potential of ASTL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.

Base Metals Drift as Traders Await Trump-Zelenskiy Meeting
Base Metals Drift as Traders Await Trump-Zelenskiy Meeting

Bloomberg

timean hour ago

  • Bloomberg

Base Metals Drift as Traders Await Trump-Zelenskiy Meeting

Aluminum fell and copper was little changed as metals markets opened Monday on a cautious note before President Donald Trump's crunch talks with Volodymyr Zelenskiy. Ukraine's president is due to meet Trump later Monday to decide on the next steps after a US-Russia summit ended without US sanctions or a ceasefire. Late Sunday in Washington, the US leader said in a social media post that Zelenskiy 'can end the war with Russia almost immediately, if he wants to, or he can continue to fight.'

Asia stocks up, oil down before Trump-Zelensky talks
Asia stocks up, oil down before Trump-Zelensky talks

Yahoo

time2 hours ago

  • Yahoo

Asia stocks up, oil down before Trump-Zelensky talks

Asian stocks were mostly higher Monday while oil dipped ahead of talks between Donald Trump, Ukrainian President Volodymyr Zelensky, and European leaders in Washington. US President Trump met Russian President Vladimir Putin in Alaska on Friday, but the summit failed to yield any breakthrough on a ceasefire in Ukraine. Zelensky, who will be joined in Washington by European leaders, however called a US offer of security guarantees to Ukraine "historic". "Trump and Putin walked away without a ceasefire, without even the illusion of one," said Stephen Innes at SPI Asset Management. "What they did offer was theatre: enough 'progress' for Trump to declare victory and quietly holster his double-barreled threat -- tariffs on Beijing for buying Russian barrels and sanctions on Moscow's crude," Innes said. Before the Alaska talks, US stocks wavered on Friday after mixed economic data, with retail sales up but an industrial production index and a consumer survey both down. Oil prices, which have been volatile for several days -- Russia is a major crude producer -- fell back on Monday, adding to a drop on Friday. Japan's Nikkei was up, posting a new record high and adding to gains on Friday after better-than-expected economic growth data. The Hang Seng, Shanghai, and Sydney were also higher while Taipei fell back. This week investor eyes will be on any clues on US interest rates at the Federal Reserve's annual retreat at Jackson Hole. - Key figures at around 0130 GMT - Tokyo - Nikkei 225: UP 0.7 percent at 43,678.12 Hong Kong - Hang Seng Index: UP 0.1 percent at 25,293.34 Shanghai - Composite: UP 0.2 percent at 3,704.76 New York - Dow: UP 0.1 percent at 44,946.12 (close) London - FTSE 100: DOWN 0.4 percent at 9,138.90 (close) Euro/dollar: DOWN at $1.1699 from $1.1704 on Friday Pound/dollar: DOWN $1.3556 at from $1.3557 Dollar/yen: UP at 147.47 yen from 146.85 yen Euro/pound: DOWN at 86.30 pence from 86.34 pence West Texas Intermediate: DOWN 0.2 percent at $62.69 per barrel Brent North Sea Crude: DOWN 0.3 percent at $65.65 per barrel burs-stu/fox Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store