Marc Chandler - Return of Tariff Volatility, Currency Shifts, and the Rise of the ”Sell America” Trade

In this KE Report daily editorial, we welcome back Marc Chandler,  Managing Partner at Bannockburn Global Forex  and Editor of Marc to Market, to unpack the market-shaking announcement from President Trump: a potential 50% tariff on European Union goods. This policy shift has reignited global trade tensions and is already sending shockwaves through equity, bond, and currency markets.

 

Marc provides a wide-ranging macro breakdown, covering:

• The market reaction to renewed tariff threats, including the sharp sell-off in European equities and rally in bonds.
  
  
• A detailed look at currency market trends, including strength in the euro, pound, Canadian dollar, and Chinese yuan… and a weakening U.S. dollar index.
  
  
• Why the dollar's recent weakness is more about the U.S. itself than foreign currency strength.
  
  
• How global capital flows are evolving, including surprising Q1 U.S. inflows and a nuanced view on the so-called "Sell America" narrative.
  
  
• An emerging trend: the U.S. dollar as a new global carry trade - a role once dominated by the Japanese yen.
  
  
• Big-picture risks in bond markets and the potential geopolitical realignment between the EU and China, as Europe grapples with economic and strategic pressure from both the U.S. and Russia.
  
  

 Visit Marc to Market for more of Marc's analysis.