USD/JPY is currently trading below 145.50, considerably lower than its late Friday level. This movement was reported by Eamonn Sheridan on Sunday, April 6, 2025.
The currency pair is noted to be underneath 146.00, confirming the change. US Commerce Secretary Lutnick announced that tariffs, effective from April 9, will not be delayed.
Dealing desks will operate on Sunday in preparation for the reopening of US markets. Over 50 countries have reached out to the US regarding tariff discussions.
Currency Movements Reflection
In other currency movements, AUD/USD is tracking below 0.6000, while EUR/USD is at 1.0895.
The shift in the USD/JPY pair beneath the 145.50 mark—particularly when compared to its levels late last week—suggests a broader reaction to updates from Washington that now appear to be fully digested by traders. It’s evident the momentum that had been building into Friday has reversed course over the weekend. With the pair now trading markedly lower, we interpret this as a direct consequence of confirmed trade policy announcements and the clear messaging accompanying them.
Lutnick’s confirmation that tariffs will go into effect without delay—scheduled for April 9—appears to have removed any remaining uncertainty surrounding this policy move. This has impacted risk sentiment, especially across Asian currency positions, where sensitivity to US trade decisions tends to be pronounced. With more than 50 countries formally initiating tariff consultations with Washington, tensions around near-term trade relations remain elevated. That’s not hearsay—that’s derived directly from the outreach reported.
Pre-market preparations on Sunday, usually quieter, took on added urgency. We observed that dealing desks, particularly those handling yen hedges, were actively recalibrating positions in anticipation of Monday flows. The fact that there was such preparation underlines the gravity with which markets are treating the new tariff timeline.
The sharp move lower in the Australian dollar, now slipping below 0.6000, reveals a broader recalibration underway—not just in dollar pairs but also in perceived commodity currency exposure. Typically this is where we see a reflex move into the greenback, but here that retreat was more muted, pointing to a multi-directional stress response. When AUD/USD falls under such a clearly defined psychological barrier, it reflects diminishing demand across risk-oriented trades—particularly with tariffs fresh on the horizon.
Current Forex Trends
At the same time, EUR/USD remains somewhat steady near 1.0895, suggesting that euro positioning has been better insulated from direct trade friction headlines. That said, we shouldn’t treat this as immunity. It may only mean that euro traders are yet to price in second-order implications—financial tightening and uncertainty in export-linked sectors could still filter through.
What matters now is pace. With these pricing shifts emerging over the weekend rather than during active sessions, implied volatility could widen early in the week. This poses both risk and opportunity—but notably, we should be widening our focus, not concentrating solely on one or two pairs. There’s active rebalancing across several exposures.
In general, traders who manage risk through derivatives must take into account that hedging costs are likely to shift materially between now and April 9. Short-dated expiries, particularly those capturing that rollout window for tariffs, should be scrutinised for premium build-up. It’s during these moments that options markets provide not just protection, but an x-ray view into how sentiment is layered across time frames.
When we look at positioning cues from late Friday contrast them to present levels, changes have been sufficiently swift to merit new entries—or exits—on revised assumptions. Global macro signals have not just crossed into markets silently. They’ve knocked. For some, that means reviewing hedges immediately. For others, it could mean striking now before implieds stretch further.
Keep your focus sharp. Avoid assumptions carried from Friday’s close; the shifts since then have been direct, informed, and now visible across currency pairs that usually trade in separate rhythm.
