This week, U.S. President Donald Trump’s sweeping implementation of tariffs captured market attention, relegating most economic data releases to the sidelines. While Trump had previously signaled his intent to impose tariffs broadly, the extent to which key trading partners would be affected remained uncertain until the official announcement.

The first notable data release came in the form of Germany’s preliminary Consumer Price Index (CPI) for the month, which posted a month-over-month increase of 0.3%—in line with expectations. As anticipated, the release failed to significantly impact markets. The EUR/GBP pair remained stable in the early part of the week, with limited movement until the tariff news broke. While substantial rate fluctuations did occur, they were largely driven by the tariff developments.

Midweek attention shifted to U.S. economic data, with several key indicators released on Tuesday and Wednesday. These included the ISM Manufacturing PMI, JOLTS Job Openings, and the ADP Non-Farm Employment Change. The ISM Manufacturing PMI came in at 49, missing the forecast of 49.5 and falling below the key 50-point threshold, signaling continued contraction in the manufacturing sector. Weaker-than-expected JOLTS data further underscored concerns about the slowing U.S. economy, making Tuesday a difficult day for the markets.

Wednesday offered a slight reprieve, with better-than-expected ADP employment figures providing a brief sense of optimism, prior to the highly anticipated tariff announcement later that evening.

President Trump’s tariff declaration confirmed fears of widespread impositions, though the United Kingdom emerged relatively unscathed with a 10% tariff. The European Union faced a more severe blow, with tariffs set at 20%. In response, the British pound surged to its highest level against the U.S. dollar since the beginning of 2025, although the rally proved short-lived as volatility returned and rates pulled back.

Looking ahead, attention will turn to the upcoming release of U.S. non-farm payroll figures later today. However, next week’s primary focus is expected to be the U.S. Consumer Price Index (CPI) release. Even so, further developments surrounding the new tariffs are likely to drive the most significant market movements in the near term.