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It’s never a week without Trump drama since he took over the presidency, eh? And things are continuing today after the US Court of International Trade decided to block Trump’s reciprocal tariffs as seen here. There’s a lot of chaos and confusion now as to how legitimate that ruling can be.

As a reminder, the US Constitution gives Congress the power to impose tariffs but much of this power has since been delegated to the Executive Branch (led by the president) since the Trade Expansion Act of 1962. This means that the Executive Branch can call the shots on tariffs without the need for Congressional approval. And so, courts have allowed for the Executive Branch to retain this authority – at least until today when the latest ruling above is out.

The question now though, is Trump able to sidestep this and find a workaround? Does that include just outright ignoring the court ruling?

I’m no legal expert but I am sympathetic towards this line of thinking from Goldman Sachs here. We’ll have to see how Trump responds to this as well of course. Whatever he says or claims to be able to do next, however legitimate or not, will surely still have an impact on the reaction of broader markets. So, keep an eye out for that.

For now, his only response seems to be this. But one can reasonably expect a stronger reply in the early morning tomorrow in the US.

As markets digest the news, the dollar is sitting higher as we look towards European trading at least.

EUR/USD is down 0.3% to 1.1250 with USD/JPY up 0.6% to 145.70 levels at the moment. The latter traded up to a high of 146.28 earlier, its highest in two weeks.

This article was written by Justin Low at www.forexlive.com.

Court blocks the bulk of Trump’s tariffs (read from the bottom up for the chronology)

• Goldman Sachs says Trump can sidestep the court ruling against his tariffs
• Trump appears unlikely to back down, says he is on a “Mission from God”
• Trump has appealed against the court ruling blocking tariffs
• Trump has a number of avenues of appeal open – here’s one
• Trump’s tariffs blocked – what we know
• USD higher after US court says Trump doesn’t have ‘Liberation Day’ tariff authority
• The US dollar is continuing to rocket higher on the tariff-block news
• A US federal court blocked Trump’s “Liberation Day” tariffs from going into effect

Nvidia earnings (read from the bottom up for the chronology)

• Nvidia CEO warns that Chinese AI rivals are now ‘formidable’
• “Nvidia’s business is still booming, even with the company effectively shut out of China”
• There has been a MASSIVE error in the Nvidia Q1 earnings announcement – shock for markets
• Nvidia (NVDA) Q1 EPS 96 (93c expected) Revenue $44.1bn (exp 43.28bn)

Other (ditto):

• USD/JPY has steadied after its earlier leap above 146.20
• Federal Reserve speakers Thursday include Barkin, Goolsbee, Kugler, and Logan
• The White House has confirmed that Musk has left the Trump administration
• Australian Q1 2025 headline capex -0.1% q/q (expected +0.5%).
• PBOC sets USD/ CNY reference rate for today at 7.1907 (vs. estimate at 7.2033)
• New Zealand data: Business Confidence (May 2025): 36.6 (prior 49.3)
• Japan eco min Akazawa: Our basic position is to strongly request review of tariff policy
• Bank of Korea cuts its key interest rate by 25bp, as expected
• Musk has officially thrown in the towel on his government job
• ICYMI: Explosive new intelligence report reveals Iran nuclear weapons program still active
• U.S. pauses exports of jet engine technology and chip software to China – New York Times
• US will begin revoking visas of Chinese students
• Reserve Bank of New Zealand now expected to slow down its rate cut pace
• ICYMI – German government to spend 110 bn EUR to boost the nation’s economy
• RBNZ assistant governor silk: China’s low domestic consumption is a key issue
• MUFG are looking for yen strength, say the BoJ is likely to remain unmoved
• Reserve Bank of New Zealand Governor Hawkesby sees near term growth headwinds
• Forexlive Americas FX news wrap 28 May: FOMC meeting minutes less upbeat
• Oil: private survey of inventory shows a large headline crude oil draw vs. build expected
• Trade ideas thread – Thursday, 29 May, insightful charts, technical analysis, ideas

The session got off to a fast start with equity headlines leading the charge. Nvidia’s Q1 earnings release made a messy entrance — the company initially published an incorrect EPS figure of 81c, well below the 93c expected. That was quickly corrected to 96c, turning the narrative into a modest beat. It wasn’t one of Nvidia’s typical blowout quarters, but good enough for shares to rise and lift the broader market alongside them.

But the real action came later.

A U.S. Federal Court — the Court of International Trade — ruled that President Donald Trump exceeded his authority in imposing tariffs on all imported goods. The so-called “Liberation Day” tariffs, enacted under the International Emergency Economic Powers Act (IEEPA) of 1977, were declared illegal and blocked via injunction. A three-judge panel found that Congress did not delegate the president open-ended authority to set tariffs. Importantly, Trump’s sector-specific tariffs were not addressed and remain in place for now.

Trump has already filed an appeal and has several potential paths forward:

• Appeal to the U.S. Court of Appeals for the Federal Circuit

• Escalate to the Supreme Court

• Seek Congressional approval

• Attempt to reframe the tariffs under alternative legislative authority

The road ahead is likely to be long, complex, and politically messy. Ongoing trade negotiations may continue, but this ruling weakens Trump’s negotiating leverage. The uncertainty is expected to weigh further on business investment. The projected tariff revenue — previously touted to bring in between $3.3 and $5.2 trillion over a decade — now looks increasingly speculative. That leaves a gaping hole in Trump’s deficit-financed “Big, Beautiful Bill” of tax cuts.

Goldman Sachs offered a different take, suggesting Trump could work around the ruling. Analysts noted he might reimpose a 10–15% tariff using Section 122 authority, buying time to launch Section 301 investigations targeting major trading partners. I’m no tariff lawyer, but one assumes Goldman’s view is on solid ground.

Markets reacted decisively. The U.S. dollar surged, with safe haven currencies like the yen and franc falling sharply. U.S. equity futures built on earlier gains.

In the region, the main local data point was Australian Q1 private capital expenditure. Business investment fell 0.1% q/q, against expectations of a 0.5% gain. Mining capex rose, but this was offset by weakness elsewhere — particularly a drop in equipment spending, which could drag on near-term GDP. Forward-looking plans were more encouraging, with firms projecting A$155.9 billion in capex for the 2025/26 financial year, broadly in line with forecasts.

The yen, and CHF, weakened on the court ruling news:

This article was written by Eamonn Sheridan at www.forexlive.com.

NVIDIA Earnings Ignites Markets: Post-Earnings Surge Lifts Nasdaq, S&P 500, and Ethereum

NVIDIA’s blowout earnings reaction has sparked a powerful move across markets overnight, putting bulls firmly in control at Thursday’s open. After reporting earnings last night, NVIDIA stock surged as much as 5.8% in after-hours trading, before cooling slightly and settling at +4.8% above Wednesday’s close.

Keep a close eye on the $145 to $147 zone, especially the $145.50 level. If price crosses above that and later breaks back down either today or Friday, profit-taking activity could intensify, setting the stage for a pullback. It’s a zone to watch for signs of hesitation from bulls or potential traps for late buyers.

Why NVIDIA Stock Surged After Earnings: CEO Confidence and Global Growth Fuel Rally

One reason NVIDIA’s stock surged following last night’s earnings report may relate to investor sentiment around geopolitical challenges. While many factors influence market reactions — and we’ll never know all of them or their weight — a notable consideration was the uncertainty over NVIDIA’s ability to navigate both the U.S. and Chinese markets. Although China isn’t its largest market, it remains strategically important. After the earnings release, which showed strong financial performance, investors appeared to regain confidence in the company’s positioning — particularly in CEO Jensen Huang’s ability to steer NVIDIA through complex geopolitical waters.

The company’s success in expanding into new markets, including the Middle East, further reinforced the belief that growth can continue even if China remains a limited channel.

NVIDIA’s Rally Pushes S&P 500 and Nasdaq Higher

NVIDIA’s post-earnings momentum didn’t just lift chip stocks—it catapulted the S&P 500 E-mini futures to a new milestone. The index tapped a high of 6,005.75 overnight, a full 1.7% gain from Wednesday’s close, before stabilizing right around the 6,000 round number—a level with psychological weight and likely stop orders above and below.

The Nasdaq futures (NQ) also broke out sharply, gaining 426 points overnight and sitting 2% higher, flirting with the next major magnet at 22,000.

Expect short covering to be a key driver today, especially if price continues to hold above post-earnings breakout zones.

Ethereum: The Breakout That Keeps Giving

While traditional markets react to NVIDIA, Ethereum futures (ETH) have quietly maintained their lead in crypto momentum, reaching 2,813 in overnight trade. If you’ve been following ForexLive, you’ll recall the initial breakout call around 1,840—a remarkable move since then.

Ethereum is now firmly the crypto play of the month, if not the year. While Bitcoin holds its ground, ETH’s steady rally, greater ecosystem stability, and long-term developer traction continue to attract both institutional and retail flow.

Gold Flat Ahead of Key Macro

Gold futures (GC) remain quiet, hovering just under the $3,300 mark at $3,295 to $3,296, consolidating recent gains. The yellow metal might stay rangebound for now as traders wait for further macro signals.

TL;DR: for the markets after NVDA earnings:

• NVIDIA jumps 4.8% post-earnings; watch $145.50 for profit-taking signals.

• S&P 500 futures hit 6,005.75, closing in on the psychological 6,000 milestone.

• Nasdaq eyes 22,000 after a 426-point rally overnight.

• Ethereum hits 2,813, extending its explosive move from the 1,840 breakout zone.

• Gold trades quietly near $3,295 as traders digest recent moves.

Stay nimble—there’s plenty of short-term opportunity as markets digest this burst of momentum.

ForexLive is evolving into investingLive.com later this year. Expect our continued smart live updates, expert trade analysis, and cutting-edge decision support for traders and investors. Stay tuned this summer.

This article was written by Itai Levitan at www.forexlive.com.

GS argument:

I’m no tariff law expert (but have noted how quickly many on Twitter have gained such qualifications 😉 ) so I can only assume GS is on solid ground here.

This article was written by Eamonn Sheridan at www.forexlive.com.

Trump’s message via social media:

Doesn’t look like a TACO at this stage.

This article was written by Eamonn Sheridan at www.forexlive.com.

The USD gained across the board on the news that a US Federal court has blocked most of Trump tariffs.

ICYMI:

• A US federal court blocked Trump’s “Liberation Day” tariffs from going into effect
• USD higher after US court says Trump doesn’t have ‘Liberation Day’ tariff authority
• Trump’s tariffs blocked – what we know

• The US dollar is continuing to rocket higher on the tariff-block news

More:

• Trump has a number of avenues of appeal open – here’s one
• Trump has appealed against the court ruling blocking tariffs

The USD surged on the news, most notably against ‘safe haven’ FX such as yen and CHF. Highs were around

• 146.28 for USD/JPY
• and 0.8348 for USD/CHF

Both have retraced a little, as have other FX. EUR/USD hit lows around 1.1212 and is around 1.1245 or so as I post.

This article was written by Eamonn Sheridan at www.forexlive.com.

Musk announced this earlier:

• Musk has officially thrown in the towel on his government job

White House confirmed, an official said:

• “off-boarding will begin tonight”

Some reports are noting:

• Musk’s departure was quick and unceremonious
• Musk did not have a
  formal conversation with Trump before announcing his departure
• he leaves a day after criticizing Trump’s tax bill, calling it too expensive and a measure that
  would undermine his work with DOGE

Musk is needed back at Tesla, he has been missed by shareholders.

This article was written by Eamonn Sheridan at www.forexlive.com.

Private New Capital Expenditure -0.1% q/q

• expected +0.5%, prior -0.2%

Building Capital Expenditure +0.9% q/q

• prior +0.2%

Plant/Machinery Capital Expenditure -1.3% q/q

• prior -0.8%

—

Estimate #2 for Australian Private Capital Expenditure for 2025-26 155.9bn

• prior 148.0bn

Estimate #6 for Australian Private Capital Expenditure for 2024-25 187.6bn

• prior 183.4bn

—

This article was written by Eamonn Sheridan at www.forexlive.com.

New Zealand ANZ Business Survey for May 2025.

Business Confidence 36.6

• prior 49.3

Activity Outlook 34.8

• prior 47.7

more to come

This article was written by Eamonn Sheridan at www.forexlive.com.

Japan economy minister Akazawa:

• National security and trade policies are different matters, cannot be negotiated as one
• Our basic position is to strongly request review of tariff policy

—

No comment relevant to this from Akazawa so far:

• A US federal court blocked Trump’s “Liberation Day” tariffs from going into effect
• USD higher after US court says Trump doesn’t have ‘Liberation Day’ tariff authority
• Trump’s tariffs blocked – what we know

• The US dollar is continuing to rocket higher on the tariff-block news

More:

• Trump has a number of avenues of appeal open – here’s one
• Trump has appealed against the court ruling blocking tariffs

This article was written by Eamonn Sheridan at www.forexlive.com.

Here’s the news and the impact:

• A US federal court blocked Trump’s “Liberation Day” tariffs from going into effect
• USD higher after US court says Trump doesn’t have ‘Liberation Day’ tariff authority
• Trump’s tariffs blocked – what we know

• The US dollar is continuing to rocket higher on the tariff-block news

The latest is:

• Trump has appealed against the court ruling blocking tariffs

In a nutshell, the Court ruled that Congress has not delegated authority to Trump some sort of umlimited authoirity to set tariffs:

• Worldwide and Retaliatory Tariffs lack any identifiable limits
• thus fall outside the scope of sec. 1702
• maximum limit to unilateral Presidential tariffs for “balance of
  payments” related means is 15% maximum for not more than 5
  months
• fentanyl and reciprocal tariffs are moot (questionable)

Also, it did not address any question of sectoral tariffs. Those appear safe for Trump for now.

In a nutshell, again, Trump has scope for tariffs, just perhaps not as wide as he initially announced.

This article was written by Eamonn Sheridan at www.forexlive.com.

Musk:

• As my scheduled time as a special government employee comes to an end, I would like to thank President Trump for the opportunity

A respectful exit from Musk. He’s been disappointed that what little he achieved at DOGE has been burned away by the one big bootiful bill that ramps debt higher.

Musk has been sorely missed at Tesla. Shareholders will welcome him back.

This article was written by Eamonn Sheridan at www.forexlive.com.