Posted at 21 April 2025 / Categories Market Roundups
Market Roundup
• China PBoC Loan Prime Rate (Apr) 3.60%,3.60% forecast,3.60% previous
•China PBoC Loan Prime Rate 3.10%,3.10% forecast,3.10% previous
•US dollar falls to three-year low as Trump criticizes Fed
•Trump to pressure tariff-exemption seekers to limit China trade
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro touched a three-year high on Monday as dollar slipped lower as anxiety over tariffs and public criticism of the Federal Reserve by President Donald Trump hit sentiment. Trump launched a series of attacks against Fed Chair Jerome Powell on Thursday, with his team evaluating whether they could fire Powell, a move that has great consequence for the central bank's independence and for global markets. Chicago Federal Reserve President Austan Goolsbee said on Sunday that he hopes the United States is not moving to an environment where the ability of the central bank to set monetary policy independent of political pressure is questioned. Trump's tariff policies have rattled financial markets as investors fear a severe disruption in world trade could tip the global economy into recession. Immediate resistance can be seen at 1.1550(23.6%fib), an upside break can trigger rise towards 1.1571(Higher BB).On the downside, immediate support is seen at 1.1399(Daily low), a break below could take the pair towards 1.1312(38.2%fib).
GBP/USD: The British pound strengthened against the U.S. dollar on Monday as investor confidence in the U.S. economy took another hit over President Donald Trump's plans to shake up the Federal Reserve.Trump launched a series of attacks against Federal Reserve Chair Jerome Powell, with his team evaluating whether they could fire Powell . A 90-day reprieve on some duties for all trading partners except China has done little to arrest the dollar's decline or to tame the heightened volatility in the foreign exchange markets. Trading was thin with most European markets and those in Australia and Hong Kong closed for Easter Monday. At GMT 07:16, the British pound was trading higher 0.64% at 1.3344 against US dollar. Immediate resistance can be seen at 1.3410(23.6%fib), an upside break can trigger rise towards 1.3485(Higher BB).On the downside, immediate support is seen at 1.3227(38.2%fib), a break below could take the pair towards 1.3165(April 15th low).
AUD/USD: The Australian dollar strengthened on Monday as broad weakness in the US dollar continued boosted to Australian dollar.On April 2, U.S. President Donald Trump announced "reciprocal tariffs" on many countries, escalating the trade conflict with China despite pausing some levies. A 90-day reprieve on some duties for all trading partners except China has done little to arrest the dollar's decline or to tame the heightened volatility in the foreign exchange markets. On Monday, China warned countries against striking a broader economic deal with the U.S. at its expense, a move Trump is reportedly seeking from countries looking for tariff reductions or exemptions. At GMT 07:20, the Australian dollar was trading higher 0.68% at $0.6422 against US dollar. Immediate resistance can be seen at 0.6438(23.6%fib), an upside break can trigger rise towards 0.6489(higher BB).On the downside, immediate support is seen at 0.6367(Daily low) , a break below could take the pair towards 0.63333(38.2%fib).
USD/JPY: The dollar slipped to seven month low against the Japanese yen on Monday as the dollar weakened amid the ongoing uncertainty over U.S. tariff policies. Trump's sweeping tariffs and uncertainty over his trade policies have sent global markets into a tailspin and darkened the outlook for the world's largest economy, in turn weakening the dollar as investors pull money out of U.S. assets.China on Monday accused Washington of abusing tariffs and warned countries against striking a broader economic deal with the United States at its expense, ratcheting up its rhetoric in a spiralling trade war between the world's two biggest economies. Against a basket of currencies, the dollar slid to a three-year low of 98.164 on Monday. Immediate resistance can be seen at 142.28 (Daily high) an upside break can trigger rise towards 143.00(Psychological level) On the downside, immediate support is seen at 140.23 (23.6%fib) a break below could take the pair towards 139.78(Lower BB).
Equities Recap
Asian equities traded mixed on Monday as investor confidence was rattled by ongoing tariff concerns and President Trump’s criticism of the Federal Reserve.
Japan's Nikkei 225 was down 1.31% , South Korea's KOSPI was up 0.20%,Hang Seng was up by 1.6%
Commodities Recap
Gold reached a new record high on Monday, driven by mounting concerns over global economic growth due to the ongoing U.S.-China trade war, while a weakening U.S. dollar added further momentum to the precious metal’s rally.
Spot gold advanced 1.9% to $3,391.02 an ounce as of 0641 GMT after hitting a record high of $3,391.62 earlier in the session. U.S. gold futures firmed 2.2% to $3,402.80.
Oil prices dropped by 1.5% on Monday as investor concerns resurfaced that U.S. tariffs on key trading partners could slow economic growth and curb future fuel demand.
Brent crude fell 97 cents, or 1.4%, to $66.99 a barrel by 0640 GMT, after a 3.2% gain on Thursday. U.S. WTI crude dropped 96 cents, or 1.5%, to $63.72, following a 3.54% rise in the previous session