Trump criticized the Fed for shaking confidence! US dollar continues to be sold

On April 21, during the European session on Monday, the US dollar (USD) faced selling pressure again after closing in a calm manner last week. Growing concerns about the U.S. recession and questions about the independence of the Federal Reserve have put pressure on the currency. Many international markets, including France, Germany and the United Kingdom, will continue to close to celebrate Easter Monday, but the U.S. stock and bond markets will be open during normal times. The Economic Calendar does not publish any advanced data.

White House economic adviser Kevin Hassett told reporters late Friday that President Donald Trump and his team are continuing to study whether firing Fed Chairman Jerome Powell is an option, which is unprecedented. Meanwhile, the Financial Times reported earlier on Monday that Chinese state-owned funds are cutting off new investments in U.S. private equity as the next step in the escalating trade conflict. After a slight decline last week, the U.S. dollar index continued to decline early on Monday, trading below its lowest level since April 2022 of 98.50, down more than 1% on the day. Meanwhile, U.S. stock index futures opened bearish this week, down 0.8% to 0.9% last time.

The People's Bank of China (PBOC) announced that it will maintain the most preferential interest rate (LPR) for one- and five-year loans at 3.10% and 3.60%.

Basic market conditions of the foreign exchange market:

The continued weakening of the dollar pushed the euro to a three-year high on Monday, and the yen also rose to a seven-month high. The Swiss franc exchange rate against the US dollar rose to a new high of more than a decade.

Euro/USD continued its upward trend earlier on Monday and traded above 1.1500, the highest since November 2021. Reuters reported on Monday that the EU is considering changing its methane emission rules to make it easier for the United States to avatradescn.comply with its natural gas exports.

GBP/USD rose on Monday, trading at its highest since September around 1.3400.

The US dollar/JPY fell more than 1% on the day, and traded around 140.70 in early trading on Monday.

Big market fundamentals:

In terms of avatradescn.commodities, driven by risk aversion, gold prices rose by more than 2%, hitting a record high of US$3,395, and the cumulative increase has reached 26% this year. Since the beginning of this year, gold prices have been setting new records.

As US-Iran nuclear negotiations progressed, easing market concerns about a decrease in supply to major oil-producing countries in the Middle East, oil prices fell on Monday. Brent crude futures fell 1.75% to $66.77 a barrel. U.S. WTI crude oil fell 1.75% to $63.55 a barrel.

Analysis of major currency trends:

Euro: Euro/USD broke through 1.1472 today and resumed its upward trend, and intraday bias rose again. The current rise from 1.0176 should be targeted at a 161.8% forecast of 1.0358 to 1.0953, and next from 1.0731 to 1.1694. On the downside, a small support level below 1.1357 will make the intraday bias neutral and consolidate again, then rebound again.

GBP: GBP/USD has truly recovered through breaking through 1.3291, and intraday bias has risen again. A resolute breakthrough of 1.3433 will confirm a larger uptrend recovery and aim for a 100% forecast from 1.2706 to 1.3813 to 100% forecast from 1.2099 to 1.3206. On the downside, the secondary support below 1.3277 will first make the intraday bias neutral again.

JPY: The US dollar/JPY continued to decline today, and the intraday bias continued to decline. Breakthroughs through the recent downward channel indicates a downward acceleration. The current decline from 158.86 should expand to 139.57 support level. On the plus side, small resistance above 144.07 will turn into intraday bias neutral again. But as long as the resistance at 151.20 is held, the overall outlook will remain bearish.

The above content is about "[Ava Aihua official website]: Trump criticized the Fed for shaking confidence! The entire content of the US dollar continues to be sold off is carefully avatradescn.compiled and edited by the editor of Avatrade Forex. I hope it will be helpful to your transaction! Thanks for your support!

Only the strong can understand the struggle; the weak can't even fail, but are born to be conquered. Go forward to learning the next article!