European markets fall as Trump says EU tariffs will ‘definitely happen’, but stocks recover after Mexican tariffs delayed by a month

• Trump pauses plan to impose 25% tariff on Mexico after Sheinbaum agrees to deploy troops to southern US border – live

Here’s a chart showing how Canada’s currency fell to its weakest level in more than 20 years overnight.

The loonie (as it’s known in foreign exchange circles) fell almost 1.48 per US dollar, its lowest level since 2003, amid a general surge in demand for the US dollar (updated).

The immediate market impact late on Sunday was a sharp move higher in the US dollar. EUR/USD fell below $1.02 at one stage but has since recouped losses and is back above this level.

The Mexican peso initially fell 2% at the open, USD/MXN rose to its highest level since 2020, which is a fairly modest early reaction considering how negative these tariffs could be for the Mexican economy.