Trusted by over 15 Million Traders
The Most Awarded Broker
for a Reason
market news
Trump's tariffs "change face" break through the 100 mark of the US index! Funds fleeing US dollar assets force the Fed to "preventive interest rate cuts"?
Wonderful introduction:
A person's happiness may be false, and a group of people's happiness cannot tell whether it is true or false. They squandered their youth and wished they could burn it all, and that posture was like a carnival before the end of the world.
Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Decision Analysis]: Trump's tariffs "change face" break through the 100 mark of the US dollar index! Funds escape from US dollar assets, but forces the Federal Reserve to "preventive interest rate cuts"?" Hope it will be helpful to you! The original content is as follows:
Asian Market Review
On Thursday, the US dollar index continued to decline during the day, falling by more than 2% at one point, reaching a near the 100 mark. As of now, the US dollar is quoted at 100.36.
Kansas City Fed Chairman Schmid believes that the US dollar is the king and should always be the king. xmaccount.compared with the beginning of the year, the risks of rising inflation, sluggish employment and economic growth have increased significantly.
Dallas Fed Chairman Logan: Tariff-related price increases must be prevented to lead to longer-lasting inflation.
Chicago Fed Chairman Goulsby: U.S. long-term debt is still the safest asset in the world, and the current threshold for changing interest rate policies is very high.
Boston Fed Chairman Collins: There may still be room for interest rate cuts this year, and tariffs may make core inflation "far more than" 3% this year.
European xmaccount.commission President von der Leyen: The EU has agreed to suspend countermeasures against US tariffs on April 15, with a suspension period of 90 days.
The EU said that if negotiations with the United States are not going well, taxes may be imposed on large U.S. technology xmaccount.companies.
ASEAN promises not to take retaliation against U.S. tariffs.
The talks between Russia and the United States and Istanbul ended, and the whole process lasted for five and a half hours. Russia and the United States agreed to formulate a plan to return Russia's confiscated diplomatic facilities. Trump said he does not rule out meeting Putin in the future.
The Houthi leader vows toContinue to launch attacks on Israel and Israeli ships.
Iran is considering reaching an interim nuclear deal with the United States to gain more negotiation time.
The US unseasonally adjusted CPI annual rate in March was 2.4%, hitting a six-month low, lower than the market expectation of 2.6%. The market is almost xmaccount.completely priced at the Federal Reserve's rate cut in June. Trump said inflation has fallen.
According to US media reports, the White House trade team's power was reshuffled, and the hawkish camp's [XM Group]The Secretary of xmaccount.commerce and Trade Advisors were marginalized, and the Treasury Secretary took over the overall trade situation.
Trump: The first agreement on tariffs is very close to being reached. Tariffs may bring about "transitional problems", but the United States is in very good shape at the moment.
The U.S. House of Representatives passed a budget framework to clear the way for Trump to cut taxes and raise debt ceilings.
Summary of institutional views
SPIAssetManagement analyst Stephen Innes: Tariff "slow-down strategy" is exposed! New storms are "moving eastward"
Japanese stock index futures opened on Friday and plunged nearly 4% - after a staggering 9% increase on Thursday, this is undoubtedly a cruel test of reality. This is not a pullback, but a market slammed into the brakes. The excitement brought by Trump's suspension of tariffs is rapidly fading, Asian stock markets are about to feel the decline, and the market is also beginning to fluctuate. What caused this sequelae?
It's very simple: the market believes that "tariff" is not a shift in strategic focus, but a strategy. Trump's 90-day "respite" to his allies has dominated the headlines, but remains high Asian tariffs. Therefore, this is not a downgrade of the situation, but a targeted escalation. Now, the market is struggling to reassess this risk. The trade war has not ended - it just became tactical. What's the atmosphere now? At best, it's just chaos. Trump is only one TruthSocial post away from levieding new taxes, but quantitative analysts don't buy it. The world's two major economies are trapped in a full-scale trade war—and no winners.
All risky assets have suffered a heavy blow. This is not a rotation, but an explosion. At the same time, safe-haven assets are fully in full swing. The euro has also entered a crazy mode, and capital is running around to seek hedge. Worse, the bond market is performing poorly, and capital is shifting from US long-term bonds to European safe-haven bonds. Overall, Thursday’s rise was a relief, but Friday’s opening was the real liquidation. This is no longer a market for buying on dips - it is a battlefield for selling on dips. Fasten your seat belt. The storm is not over yet. It just moved to a new time zone.
Analyst David Scutt: The dollar's risk-haven halo fades, and the US-Japan high-return short opportunities emerge
Despite the sharp rise in US Treasury yields, the dollar is still under pressure, and its traditional risk-haven attractivenessAll-round challenge. Whether it is safe-haven currencies such as the Japanese yen and Swiss franc, or cyclical currencies such as the Australian dollar and the Canadian dollar, market sentiment has changed significantly. If this continues, the closing of the dollar long positions may last longer, especially in currency pairs such as the United States, Japan and the United States and Canada, where a bearish pattern has begun to emerge.
Recently, there has been a good short selling opportunity in the United States and Japan. This morning, the United States and Japan fell below the year's low, and the momentum indicator also supported the downward trend. The slight upward trend of the Relative Strength Index (RSI) has now been broken and hit a new low. The MACD indicator has also crossed the zero axis, confirming that bearish momentum is increasing. Investors considering shorting can sell after the US and Japan fall below 144 and set a stop loss above this level. 141.75 is the potential target, while 139.6 is another option for investors seeking higher risk returns.
Facefield Bank: The focus of the ECB April meeting will be on short-term growth risks
We expect the ECB to cut interest rates by another 25 basis points at its April meeting. We are more convinced that potential cost pressures will continue to ease—as wage pressures diminish, service industry price increases are expected to fall back to 3% in the middle of the year. If factors such as lower oil prices, strengthening the euro and continuing financial pressure work together, price stability will also face significant downward risks, which makes it more difficult to justify the idea of maintaining a cautious policy stance. Fiscal policy may also turn to a more positive direction, and Germany's 2025 budget is expected to show an expansion trend.
But in the medium term, we still maintain the judgment that core inflation has upward risks, mainly due to fiscal expenditures in Europe (especially Germany) planned, shrinking working-age population, declining policy uncertainty and potential trade protectionism trends. Based on this, we have added the option to launch a rate hike next year in the forecast. Although hawkish officials may emphasize these risks right now, the focus of the April meeting is expected to focus on short-term growth risks, which makes the exit from restrictive policy stance more urgent - even the possibility of a direct 50 basis point cut in April cannot be ruled out.
Whether to implement interest rate cuts ahead of schedule may depend on market performance in the xmaccount.coming days, but there have been no serious market failures that require urgent measures to be taken so far. By the time the new employee forecast is released in June, the ECB should be able to more accurately determine whether it needs to turn to a xmaccount.comprehensive easing policy stance to defend its symmetric inflation target.
Analyst Matt Simpson
The dollar continued to decline at a staggering rate, catching all investors who had expected to be calm on Friday off guard. This morning, the US dollar index quickly fell below the 100 mark, and the volatility of the pound also increased sharply, causing the European, American, or European pounds to break through the daily volatility range in the Asian session, which is rare.
The US dollar index’s trend around the 100 mark and the 2024 low is crucial to whether the euro can continue to break through 1.14 against the US dollar. I think that in the large fluctuations with lower liquidity, the US dollar index may rebound after the oscillation, which will make the euro easy to fall back to 2023 and 2024Below the high point.
Another thing to pay attention to is of course the bond market. Bond prices are under pressure as investors flock to exit, and they demand a higher premium to hold so-called safe-haven assets, pushing up U.S. bond yields. The yield on the 10-year U.S. Treasury bond has soared to 4.5%, but if there is one level that may crush the camel, it is that the yield on the 30-year U.S. Treasury bond has reached 5%. On Wednesday, we saw the 30-year Treasury yield briefly breaking 5% in the Asian session, and in less than 15 hours, Trump surrendered and announced a 90-day suspension of tariffs. But with the implementation of the suspension measures and the bond yields rise again during the Asian session, the effect of the suspension measures seems to be fading rapidly.
The above content is about "[XM Foreign Exchange Decision Analysis]: Trump's tariffs "change face" break through the 100 mark of the US index! Funds escape from US dollar assets and force the Fed to "preventive interest rate cuts"?", which was carefully xmaccount.compiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your transactions! Thanks for the support!
Due to the author's limited ability and time constraints, some content in the article still needs to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues:
Disclaimers: XM Group only provides execution services and access permissions for online trading platforms, and allows individuals to view and/or use the website or the content provided on the website, but has no intention of making any changes or extensions, nor will it change or extend its services and access permissions. All access and usage permissions will be subject to the following terms and conditions: (i) Terms and conditions; (ii) Risk warning; And (iii) a complete disclaimer. Please note that all information provided on the website is for general informational purposes only. In addition, the content of all XM online trading platforms does not constitute, and cannot be used for any unauthorized financial market trading invitations and/or invitations. Financial market transactions pose significant risks to your investment capital.
All materials published on online trading platforms are only intended for educational/informational purposes and do not include or should be considered for financial, investment tax, or trading related consulting and advice, or transaction price records, or any financial product or non invitation related trading offers or invitations.
All content provided by XM and third-party suppliers on this website, including opinions, news, research, analysis, prices, other information, and third-party website links, remains unchanged and is provided as general market commentary rather than investment advice. All materials published on online trading platforms are only for educational/informational purposes and do not include or should be considered as applicable to financial, investment tax, or trading related advice and recommendations, or transaction price records, or any financial product or non invitation related financial offers or invitations. Please ensure that you have read and fully understood the information on XM's non independent investment research tips and risk warnings. For more details, please click here
CATEGORIES
News
- 【XM Decision Analysis】--SP&500 Forecast : Rallies After CPI Misses
- 【XM Market Analysis】--GBP/JPY Forecast: British Pound Finds Potential Floor Agai
- 【XM Decision Analysis】--USD/CHF Forecast: Consolidates Amid Safety Demand and Ke
- 【XM Market Analysis】--USD/CAD Forecast: Greenback Strong
- 【XM Decision Analysis】--USD/MXN Analysis: Return to Lower Values as Sentiment Sh