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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua Ava Foreign Exchange Decision Analysis]: Trump's automobile tariffs are caught off guard! Waiting for the release of mid-range data, the US dollar falls." Hope it will be helpful to you! Original content is as follows:

Earlier on Thursday, the US dollar (USD) struggled to stay strong as market participants evaluated the latest developments surrounding U.S. trade policy. In the second half of the day, the U.S. Bureau of Economic Analysis will announce a final correction to the fourth-quarter GDP data. The economic calendar will also release the number of first-time unemployment claims in the United States every week and sales of homes for sale in February.

U.S. President Donald Trump announced Wednesday that they plan to impose a 25% tariff on all cars imported into the United States. Trump said the car tariffs will be permanent and will take effect on April 2. Later in the day, Reuters reported that the Trump administration could allow for a delay of up to one month for imports of auto parts. Trump posted on social media earlier Wednesday that they would impose large-scale tariffs on Canada and the EU “much higher than currently planned” if Canada and the EU do economic damage to the United States.

The U.S. dollar index fell back Thursday and fluctuated below 104.50 after reaching its two-week high. Meanwhile, U.S. stock index futures trading rose and fell after Wall Street's main index closed in the negative territory on Wednesday.

Basic foreign exchange market trends:

The US dollar/yen rose on Wednesday, erasing the lost ground on Tuesday. In early European trading Thursday, the pair stabilized at around 150.50. Japanese Chief Cabinet Secretary Lin Fangzheng said on Thursday that they once again demanded that the United States exempt Japan's automobile tariffs.

Euro/USD fell to its two-week low of around 1.0730 in the Asian session on Thursday, but successfully rebounded. The pair last rose slightly to 1 on the day.0770 near. Several European Central Bank (ECB) policymakers, including President Christine Lagarde, will speak later in the day.

The GBP/USD fell nearly 0.5% on Wednesday, under pressure from weak inflation data and spring budget announcements. The pair held its position early Thursday, trading above 1.2900.

Bulle market fundamentals:

Uncertainty in trade tariffs pushed gold prices to rise 0.5% to $3,035/ounce, close to an all-time high of $3,057/ounce.

Oil prices rose slightly, with Brent crude oil futures rising 0.1% to $73.87 per barrel, and US WTI crude oil futures rose 0.1% to $69.73 per barrel.

Analysis of major currency trends:

Euro: The outlook for Euro/USD remains unchanged, and it is expected that the retracement from 1.0358 to 1.0726 at 1.0953 will provide strong support to avatradescn.complete the correction from 1.0953. On the plus side, breaking through 1.0857 will first retest 1.0953. Resolute breakthrough will resume a greater increase from 1.0176. However, a continued breakthrough of 1.0726 will bring a deeper correction to 55DEMA (now at 1.0630).

GBP: After the GBP/USD fell briefly to 1.2869, the price of the GBP/USD rebounded again, and the intraday bias remained neutral. The correct decline from the short-term top 1.3013 may extend to the near-term channel support level (now at 1.2792). But the downside space should be curbed by the 38.2% retracement level of 1.2248 to 1.3013 at 1.2721 to bring a rebound. On the bright side, breaking through 1.3013 will resume rebounding from 1.2099.

JPY: The outlook for USD/JPY remains unchanged. It is expected that 150.92 will still show strong resistance to avatradescn.complete a correction rebound from 146.52. The downward breakout exceeds 148.17 support will be retested first at 146.52. The 61.8% retracement level of 146.32, which continues below 139.57 to 158.86, will resume the decline from 158.86 to 139.57 support. However, a firm breakthrough of 150.92 will indicate that the decline from 158.86 has been avatradescn.completed, and then the bias will be turned back to the upward 154.79 resistance level.

The above content is about "[Ava Foreign Exchange Decision Analysis]: Trump's car tariffs were caught off guard! Waiting for the release of mid-range data, the US dollar fell back" is carefully avatradescn.compiled and edited by the Avatrade Forex editor. I hope it will be helpful to your transaction! Thank you for your support!

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