Forex Today: Trump Imposes New 25% Tariff on Steel, Aluminum

US President Trump has followed through on his threats to impose a new 25% tariff on imports of steel and aluminum.

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1. President Trump carried out his threat to impose a new 25% tariff on all imports of steel and aluminum into the USA. He has also hinted that the 25% rate could be raised, and that Australian imports might be exempted from the tariffs, presumably to induce Australia to behave in a certain way. The new tariffs will impact some of the USA's closest partners. Most stock markets were a bit lower over the day, with these new tariffs providing some headwind.
2. Gold is making market headlines today as it continues its strong bullish rise to new all-time high prices. At the time of writing just before the London session gets underway, the price is well above $2,900, having traded as high as $2,942. Trend and momentum traders will be interested in being long of Gold now, and many analysts see a profit target at the next big round number of $3,000.
3. Coffee continues its strong bullish trend, having risen by more than 16% in just three weeks, and with a more long-term bullish technical picture. Although Coffee futures can be expensive, retail traders and investors can gain exposure to Coffee via the COFF ETF, although US taxpayers should beware this is probably a PFIC for tax purposes.
4. In the Forex market, there has been very little movement since today's Tokyo opening. The only high-impact events scheduled for today which could get this market moving again are Fed Chair Powell's testimony before the US Senate on monetary policy.
5. In response to Hamas' statement that it would not release hostages as agreed next Saturday, President Trump stated that he thinks if Hamas do not release all their hostages by noon Saturday, that Israel should resume attacking Hamas in Gaza. There have been increasing signs that the ceasefire may collapse soon, and if it does, this could produce a minor chilling effect on global risk appetite.

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