The pair is now up to its highest levels since early October as it breaks the November and March highs. That puts the 1.1000 level in contention as the dollar is slumping across the board currently. As much as Trump’s tariffs are supposedly meant to squeeze other countries, there is growing fear that it is also set to bring the US economy to a recession.

The tariffs announced were certainly much steeper than expected, especially with regards to China, and that risks sending the global economy into a spiral. In any case, there is still a lot of uncertainty up in the air and this is but the early moves we’re seeing so far. There’s going to be many more twists and turns as we sort out the mess.

But for now, the dollar is an early casualty with USD/JPY also down 1.4% to near 147.00 currently. Meanwhile, GBP/USD is up 0.8% to 1.3113 while USD/CAD is also marked down by 0.3% to 1.4190 at the moment.

Even the antipodes have recovered losses to trade higher against the greenback. AUD/USD was down to around 0.6230 in Asia trading but is now back up near flat levels at 0.6300.