Market Summary (May 29, 2025)

Markets have flipped into a clear risk-on mode after a U.S. federal court struck down President Trump’s tariff authority: equities are rallying into a seasonally strong window and high-beta currencies (AUD, NZD) are outperforming, while “low-beta” safe haven currencies (JPY, CHF) and gold are sold off. Paradoxically, USD strength has been the dominant move as investors close out dollar shorts, most noticeably versus EUR, CHF and JPY. Key risks remain elevated—Trump can still pursue tariffs by other means, and trade talks now face a hard July deadline—so current positions stay unchanged, but the odds favor risk assets and the AUDUSD seasonal up-trend through early June.