[MARKET UPDATE] Stocks rise, USD falls, Bonds rise as traders pick up on WaPo reports that Trump’s aides look at universal import duties, but only on certain sectors, among first big moves of presidency

Analysis details (11:33)

NEWS: US President-elect Trump’s aides look at universal import duties, but only on certain sectors, among first big moves of presidency, WaPo reports  President-elect Donald Trump’s aides are exploring tariff plans that would be applied to every country but only cover critical imports, three people familiar with the matter said, a key shift from his plans during the 2024 presidential campaign.

• In the 10 minutes following this report the DXY has come under pressure, to a fresh 108.38 trough, with FX peers lifting to highs (EUR/USD at 1.0375 and GBP/USD at 1.2507 initially). Furthermore, metals also reacted with XAG and Copper at session highs. Modest two-way action was seen in US equity futures while European futures have lifted to fresh highs.

Specifically, over a 10-minute period:

• 
  DXY: Fell from 108.73 to 108.06


• 
  EUR/USD: Lifted from 1.0340 to 1.0401


• 
  GBP/USD: Lifted from 1.2460 to 1.2519


• 
  USD/JPY: Fell from 157.90 to 157.41


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  Antipodeans: AUD & NZD are both at fresh highs of 0.6270 and 0.5655 respectively.


• 
  USD/CNH: Fell from 7.3490 to 7.3321


• 
  DAX Mar'25: Rose from 20100 to 20212


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  ES Mar'25: Fell from 6013 to 6007 before paring and then lifting to a 6021 session high.

Moves continued thereafter with the bond and crude complex feeling further tailwinds, the DXY at new lows below 108.00, FX peers at highs and both US and European futures to new session highs.

06 Jan 2025 - 11:30- ForexImportant- Source: Newsquawk