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Seven Fundamentals for the week: Trump's opening salvo in a trade war casts shadow over Nonfarm Payrolls


Published on 2025-02-03 11:01:06 - FXStreet
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  • Harsh hangover for markets. Investors basked on Trump's initial avoidance of tariffs, but that is over. Over the weekend, he slapped 25% tariffs on Mexico, 25% on Canada - except for Oil, only 10% - and 10% on China, which comes on top of existing levies.

The article from FXStreet discusses the economic and market implications of former President Donald Trump's comments on trade policy, which have introduced uncertainty into the financial markets as the U.S. approaches the release of the February Nonfarm Payrolls (NFP) data. Trump's suggestion of imposing a 10% tariff on all imports if re-elected has raised concerns about potential trade wars, which could disrupt global trade dynamics and affect economic growth forecasts. This uncertainty comes at a time when markets are already on edge due to the Federal Reserve's interest rate decisions and the anticipation of the NFP report, which could influence future monetary policy. The article highlights how these political developments could overshadow economic indicators, potentially leading to increased market volatility. Additionally, it touches on other fundamental economic events for the week, including the ISM Services PMI, Factory Orders, and the FOMC minutes, all of which could provide further insights into the U.S. economic health amidst this political backdrop.

Read the Full FXStreet Article at:
[ https://www.fxstreet.com/analysis/seven-fundamentals-for-the-week-trumps-opening-salvo-in-a-trade-war-casts-shadow-over-nonfarm-payrolls-202502031144 ]