Safe haven currencies up before the start of "Liberation Day"

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waterman
Written by Dan Waterman
July 31st 2025
GBP v EUR recovery halted due to Trump trade fears..

US President Donald Trump has reignited global economic uncertainty, 1-day before his "Liberation Day" is set to kick in. 

Several rounds of negotiations between the US and India have failed to materialize into an agreement and so the US are set to slap a 25% tariff on Indian exports from tomorrow.

The two countries do very little business together in relative terms, but there was a an opportunity for India to become a substantial partner to the US. Instead, they will be 'punished' further than the 25% tariff after agreeing a deal with Russia to become the largest buyer of energy from the country.

"Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them" said Trump earlier this morning.

Currently, Canada is set to be hit with a huge 35% tariff tomorrow and this is bad news for the world's economy and of course the region, especially as the US & Mexico are yet to finalize a deal. 

Brazil has been hit hardest so far with a mighty 50% tariff and we await the outcome to US-China talks which have been extended to August 12th. So whilst trade fears have calmed significantly, the story isn't over yet.

The USD is on a rampage at the moment, blowing every other currency out the water. The US' GDP print yesterday was stronger than expected, the Fed held interest rates last night and the US stock market pushes on.

Safe havens (EUR, CHF, JPY, USD) have gained on the above stories as risk sentiment levels rise, halting especially £-€'s 3-week recovery.

Another mad month on the market..