Posted at 21 April 2025 / Categories Market Roundups
Market Roundup
•Concerns about US tariff effects pressure oil prices
•US, Iran begin drawing up framework for nuclear deal
•Markets eye April PMI data this week
Looking Ahead Economic Data(GMT)
•19:30 US Leading Index (MoM) (Mar) -0.5% forecast, -0.3% previous
•21:00 US 3-Months Bill Auction 4.225% previous
•21:00 US 6-Months Bill Auction 4.060% previous
Looking Ahead Events And other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro climbed to a three-year high on Monday as the U.S. dollar weakened, weighed down by concerns over tariffs and President Donald Trump’s public criticism of the Federal Reserve. Trump launched a series of attacks on Fed Chair Jerome Powell last Thursday, with reports indicating that his administration is exploring the possibility of removing Powell—a move that could have serious implications for the central bank’s independence and global financial stability. On Sunday, Chicago Fed President Austan Goolsbee expressed hope that the U.S. is not heading toward a scenario where the Fed’s ability to set monetary policy free from political interference is compromised. Meanwhile, Trump’s tariff strategies continue to unsettle markets, with investors worried that escalating trade tensions could push the global economy into a 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 rose against the U.S. dollar on Monday as investor confidence in the U.S. economy waned amid renewed concerns over President Donald Trump’s efforts to shake up the Federal Reserve. Trump intensified his criticism of Fed Chair Jerome Powell, with reports suggesting his team is assessing whether Powell can be removed from his position. A temporary 90-day suspension of some tariffsexcluding those on Chinahas done little to halt the dollar’s slide or ease the heightened volatility in currency markets. Trading volumes remained light, with most European markets, along with those in Australia and Hong Kong, closed for Easter Monday. At GMT 12:16, the British pound was trading higher 0.75% at 1.3394 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, buoyed by continued broad weakness in the U.S. dollar. On April 2, U.S. President Donald Trump announced plans for "reciprocal tariffs" on multiple countries, intensifying trade tensions with China despite temporarily suspending some levies. A 90-day reprieve on certain tariffs—excluding those targeting China—has done little to stem the dollar’s decline or reduce the heightened volatility in foreign exchange markets. Meanwhile, China issued a warning on Monday, cautioning nations against entering broader economic agreements with the U.S. that could come at China's expense, amid reports that Trump is pressuring countries seeking tariff relief to make broader concessions. At GMT 12:20, the Australian dollar was trading higher 0.73% 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 U.S. dollar dropped to a seven-month low against the Japanese yen on Monday, weighed down by persistent uncertainty surrounding U.S. tariff policies. President Trump’s aggressive tariff measures and unpredictable trade strategy have shaken global markets and cast a shadow over the economic outlook for the United States. As investor confidence wanes, capital continues to flow out of U.S. assets, further weakening the dollar. Meanwhile, China escalated its rhetoric on Monday, accusing the U.S. of misusing tariffs and warning other nations against entering broad economic agreements with Washington at China’s expense, intensifying the ongoing trade dispute between the world's two largest 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
European stock markets remained closed on Monday in observance of Easter Monday
Commodities Recap
Gold prices hit a record high, touching the $3,400 mark on Monday, as a faltering dollar and worries about a global economic slowdown over rising U.S.-China trade tensions kept safe-haven bullion in demand.
Spot gold was up 2.2% at $3,401.49 an ounce at 1142 GMT, after hitting a record high of $3,403.90 earlier in the session.
Oil prices dropped more than 2% on Monday, fueled by signs of progress in U.S.-Iran talks, while investors remained cautious about the potential economic impact of tariffs, which could dampen fuel demand.
Brent crude futures slipped $1.51, or 2.2%, to $66.45 a barrel by 1115 GMT after closing up 3.2% on Thursday. U.S. West Texas Intermediate crude was at $63.11 a barrel, down $1.57.