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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua Ava Foreign Exchange Market Analysis]: The US dollar plummeted and fell below the 100 mark, and the gold price soared nearly 45 US dollars to a record high." Hope it will be helpful to you! The original content is as follows:
On April 11, on Friday, the Asian market was intraday, and in the early trading of the Asian market, the US dollar index continued its plunge in the previous trading day, and the US dollar index fell below the 100 mark, the first time since July 2023. Spot gold soared nearly $45, setting a new record high.
The US dollar weakened across the board, with the US dollar index falling to 99.75 in the early trading session on Friday. The market continues to digest US President Donald Trump's dramatic reversal of tariff policies. The U.S. dollar index plummeted nearly 2% on Thursday to 100.98.
The yen rose 1.1% in the early trading on Friday, https://avatradescn.com at 1 US dollar against 142.89 yen. The dollar fell to a 10-year low against the Swiss franc. The increased tariff tensions have led to new turmoil in global markets, with the two safe-haven currencies, the Japanese Yen and Rielong.
As the yen soared, Japanese stocks were sold. The TSE and Nikkei 225 index fell about 5% in the early trading.
Since this month, the US dollar has fallen by 3.46% against the Japanese yen, while the US dollar has fallen by nearly 6.5% against the Swiss franc.
The White House released a memorandum on Thursday, saying that Trump's tariffs on China have reached at least 145%, including a "reciprocal tariff" of 125%, and a 20% tariff imposed on Chinese imports this year.
The White House clarified to US media CNBC at noon Eastern Time on Thursday that the Trump administration imposed a tariff rate on China in the name of reciprocal tariffs at 125%, but this does not include February this yearIn the early and early March, the United States imposed a total of 20% tariffs on China twice on the grounds of the fentanyl crisis. Therefore, during Trump's second presidency, the cumulative tariff rate imposed by the United States on all Chinese goods imported to the United States has reached 145%.
Asian market
Japan's PPI rose 4.2% year-on-year in March, slightly higher than 4.1% in February and higher than the year-on-year increase expectation of 3.9%. This growth was broadly based, with food prices rising significantly, up 3.1% year-on-year, energy costs rising, and oil and coal prices soaring 8.6% year-on-year.
Despite the rise in domestic producer prices, import costs in the yen fell -2.2% year-on-year in March, continuing the decline of -0.9% in February. However, export prices rose slightly by 0.3% year-on-year, a sharp slowdown from the year-on-year increase of 1.7% in February.
European Market
François Villeroy de Galhau, a member of the ECB Management avatradescn.committee of France, stressed today that although the United States has long advocated the global centrality of the dollar, recent tariff policy measures have begun to weaken international confidence in the dollar.
Villerroy said in an interview with FranceInter radio that the Trump administration’s approach was “very incoherent” and suggested that its recent actions “defeat” the confidence the dollar normally holds.
He avatradescn.compared this with the euro, praising Europe for its vision for establishing its own independent monetary system 25 years ago. “Thank God, Europe…created the euro,” he noted, adding that the group now enjoys “monetary autonomy” that allows the ECB to manage interest rates in a different way than U.S. policy, which was impossible in the past.
U.S. Market
FOMC March meeting minutes show that policymakers are increasingly concerned about the economic outlook, especially as uncertainty rises. While these discussions came before the sharp escalation of the U.S. tariff war in April, these insights remain valuable.
"Almost all" respondents believed that inflation risks tend to be "upward", and the "downward" risks of employment and growth are also marked, laying the foundation for policy dilemma.
Some officials stressed that the Fed may soon face "hard trade-offs", especially as inflation remains high and employment and growth prospects deteriorate.
It is worth noting that some participants also warned that the “sudden repricing of financial market risks” could amplify the impact of any negative economic shock. These avatradescn.comments seem prescient given what happened in the global market in April.
While meeting minutes may seem a bit outdated now, they still provide important benchmarks for understanding how the Fed may react in an increasingly vulnerable environment.
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