Category: US

Asset Summary – Thursday, 10 April

GBPUSD is exhibiting upward momentum, primarily driven by a weakened US dollar. Heightened trade tensions between the US and China, coupled with retaliatory tariff announcements from both nations, are contributing to this dollar depreciation. Furthermore, the European Union’s approval of tariffs on US goods adds to the negative sentiment surrounding the US currency. In the UK, concerns expressed by a Bank of England Deputy Governor regarding the potential impact of these tariffs on UK growth are influencing market expectations for future interest rate cuts. The increasing probability of aggressive rate cuts by the Bank of England, including a potential 50 basis point cut in May and a series of cuts throughout the year, is also factoring into the dynamics affecting the pair.

EURUSD is gaining value as trade tensions between the US and China escalate, leading investors to seek alternatives to the US dollar. The increase in tariffs imposed by both nations is diminishing the dollar’s appeal as a safe-haven asset, simultaneously, the Euro is strengthened by political stability in Europe, specifically the coalition agreement in Germany, which paves the way for new leadership. Furthermore, the anticipated interest rate cut by the European Central Bank this month appears to be already priced in, minimizing any potential negative impact on the Euro. These combined factors are pushing the EURUSD towards its highest level in several months.

DOW JONES is positioned for continued gains as positive market sentiment follows a substantial rally driven by President Trump’s tariff pause announcement. The index experienced a significant surge, mirroring gains in the S&P 500 and Nasdaq Composite. This upward trend is likely to be sustained, although the ongoing trade tensions with China and the potential for tariffs on the EU present a degree of uncertainty. The strong performance of leading technology companies suggests a broad-based recovery, potentially benefiting the Dow Jones through its constituents that participate in the tech sector.

FTSE 100 experienced a significant decline, driven by escalating global trade tensions. Retaliatory tariffs imposed by China and the European Union on US goods triggered market uncertainty, negatively impacting major UK stocks. Pharmaceutical companies like AstraZeneca and GSK faced substantial losses following indications of potential tariffs targeting the sector. Declining crude prices further pressured oil giants Shell and BP, contributing to the overall downturn. Despite a positive trading update from JD Sports, the lack of commentary on potential US tariff risks raises concerns given their significant presence in the American market.

GOLD is experiencing upward price pressure as escalating trade tensions between the US and China drive investors toward safe-haven assets. The tit-for-tat tariff increases, despite some broader de-escalation efforts, are creating economic uncertainty, bolstering gold’s appeal. Concerns within the Federal Reserve regarding rising inflation and slower growth, as indicated by recent FOMC minutes, further support the bullish outlook. The market is keenly awaiting upcoming US CPI and PPI data to gauge the Fed’s future interest rate policy. Additionally, substantial inflows into gold-backed ETFs in the first quarter of the year demonstrate strong investor confidence in the precious metal.

Asset Summary – Wednesday, 9 April

GBPUSD is facing downward pressure as the pound weakens against the dollar. Concerns about a potential global recession, fueled by trade tensions between the US and China, are driving investors away from assets perceived as riskier, like the British pound. This, coupled with increasing expectations of interest rate cuts by the Bank of England, significantly lowers the attractiveness of holding GBP. The market’s anticipation of aggressive monetary easing by the BoE, including a high probability of a rate cut in May, further weakens the pound, leading to a decline in the GBPUSD exchange rate.

EURUSD faces downward pressure as escalating global trade tensions and worries about slower global growth weigh on riskier currencies. The euro’s stability around $1.09 is fragile, contingent on the EU’s response to U.S. tariffs. The failure of the EU’s zero-for-zero tariff proposal and the potential implementation of counter-tariffs against U.S. goods create uncertainty. Furthermore, China’s firm stance against U.S. trade threats adds to the overall risk-off sentiment, likely hindering any significant upward movement for the currency pair in the near term. Traders should closely monitor trade negotiations and policy announcements from both the EU and the US as key drivers for future EURUSD direction.

DOW JONES faces downward pressure as newly implemented US tariffs on Chinese goods spark fears of a full-blown trade war. The market’s negative reaction, including Tuesday’s decline, suggests that investor confidence is shaken by the escalating conflict. Initial optimism about tariff negotiations has faded following confirmation of the tariffs, signaling further potential losses. The lack of progress despite reported interest from numerous countries underscores the uncertainty surrounding international trade relations, likely fueling further volatility. Investors’ focus will now shift to the Federal Reserve’s minutes for any indications regarding future interest rate policy, which could offer some stability or further exacerbate market concerns.

FTSE 100 experienced a significant rebound, adding 2.7% to reach a closing value of 7,910.5, effectively halting a recent period of declines. This upward movement suggests a potential recovery following substantial losses prompted by anxieties surrounding international trade policies, which had previously erased a considerable amount of market capitalization. The gains were particularly pronounced in the aerospace and defense sectors, with Rolls-Royce and BAE Systems leading the advance, indicating renewed investor confidence in these specific industries. Broader gains across various other companies imply a wider market recovery after the recent downturn.

GOLD is experiencing upward pressure, driven primarily by its role as a safe-haven asset in the face of escalating global economic uncertainty. The imposition of tariffs by the United States, specifically the significant duties on Chinese goods and the potential for further tariffs on pharmaceuticals, is heightening concerns about a global recession and inflationary pressures. This uncertainty is encouraging investors to seek refuge in gold. Furthermore, substantial inflows into gold-backed ETFs indicate strong investor confidence in the metal. Traders are also closely watching the Federal Reserve’s upcoming policy meeting minutes for clues regarding potential future interest rate adjustments, which could further influence gold’s value.

Asset Summary – Tuesday, 8 April

GBPUSD is facing downward pressure as the British pound weakens against the US dollar. This decline is attributed to increased risk aversion in the market stemming from worries about a potential global recession fueled by US trade policies. China’s retaliatory tariffs have exacerbated these concerns, prompting investors to anticipate significant interest rate cuts from the Bank of England. The growing expectation of aggressive monetary easing by the BoE, including a high probability of a rate cut in May, is further diminishing the appeal of the pound, thus contributing to the decline in the GBPUSD exchange rate.

EURUSD is likely to experience volatility and potential downward pressure. The escalating trade war, particularly the tariffs imposed by the U.S. and China, is creating economic uncertainty. The anticipation of retaliatory measures from the EU, coupled with President Macron’s call to suspend U.S. investments, signals a weakening of economic ties and potentially slower growth in Europe. This environment increases the likelihood of the ECB easing monetary policy, specifically rate cuts, which would devalue the Euro relative to the Dollar. The market’s expectation of a near-certain rate cut in April and further reductions throughout the year suggests a bearish outlook for the Euro, influencing EURUSD downwards.

DOW JONES experienced a decline in value, continuing a downward trend over the past three sessions amid ongoing market volatility and uncertainty surrounding tariffs. Despite an initial surge driven by tariff pause speculation, which was later refuted, the Dow Jones ultimately closed lower. Investors are closely watching upcoming inflation data, which could significantly impact the Federal Reserve’s monetary policy decisions and, consequently, influence the Dow Jones’s future performance.

FTSE 100 experienced a significant decline, reaching its lowest point in over a year, primarily driven by global market anxieties stemming from escalating trade tensions initiated by US tariffs and subsequent retaliatory actions. Investors are responding to developments regarding tariffs and retaliatory measures from other countries. The prospect of further tariff increases from the US has amplified market uncertainty, contributing to substantial losses in various sectors, with Melrose Industries, RELX, Sage Group and Rentokil Initial being some of the most impacted companies. However, a few companies such as Fresnillo, Entain, Natwest Group and Taylor Wimpey displayed some resilience against the broader downward trend, showing that there are still some companies performing well.

GOLD is experiencing upward price pressure, driven by anxieties surrounding a potential global recession fueled by escalating trade tensions between the U.S., China, and the EU. President Trump’s tariff threats are stoking fears and pushing investors towards safe-haven assets like gold. Market participants are also keenly awaiting upcoming economic data releases, including the Federal Reserve minutes and inflation reports, which could offer clues about future monetary policy decisions and further influence gold’s trajectory. Despite recent pullbacks, gold maintains a strong year-to-date performance, indicating continued investor confidence in its value.

Asset Summary – Tuesday, 8 April

GBPUSD experienced a decline as the British pound weakened significantly against the dollar. The drop was primarily fueled by growing risk aversion in the market due to concerns about the potential for a global recession stemming from US trade policies. China’s retaliatory tariffs exacerbated these fears. Consequently, investors are increasingly anticipating interest rate cuts by the Bank of England, with markets now pricing in substantial reductions to the benchmark rate. The increased probability of a near-term rate cut further contributes to the downward pressure on the pound, suggesting continued weakness in the GBPUSD exchange rate.

EURUSD faces a complex outlook amidst escalating trade tensions and anticipated monetary policy adjustments. The dollar’s weakness is supporting the euro, keeping the currency pair near recent highs. However, the potential for a full-blown trade war, particularly with increased tariffs between the U.S. and both China and the EU, creates uncertainty. Macron’s call to suspend U.S. investments and the EU’s potential retaliatory measures further exacerbate the situation. Crucially, markets are increasingly pricing in ECB rate cuts, which could weigh on the euro. The expectation of lower interest rates in the Eurozone, with a high probability of a cut in April and further easing anticipated throughout the year, presents a downward pressure on the euro relative to the dollar, potentially offsetting the current support from dollar weakness.

DOW JONES faces continued pressure amid high market volatility and tariff anxieties. Recent trading saw the Dow decline, reflecting sensitivity to trade uncertainties despite initial optimism fueled by tariff pause rumors, which were later refuted. This suggests the index’s performance is heavily influenced by trade policy developments. While technology stocks showed resilience, boosting the Nasdaq, the Dow’s broader composition makes it more susceptible to negative sentiment surrounding tariffs, and investors are likely to remain cautious until further clarity emerges, particularly with upcoming inflation data potentially shaping monetary policy decisions.

FTSE 100 experienced a significant decline, falling to a yearly low as market sentiment was negatively impacted by escalating trade tensions between the US and other nations, particularly China, stemming from tariff escalations. The broad selloff saw substantial losses across various sectors, with Melrose Industries, RELX, Sage Group and Rentokil Initial being particularly affected. The limited gains from companies such as Fresnillo, Entain, Natwest Group, and Taylor Wimpey were insufficient to offset the widespread downturn, indicating a bearish outlook driven by macroeconomic uncertainties.

GOLD is currently experiencing upward price pressure fueled by anxieties surrounding a potential global economic slowdown triggered by escalating trade disputes. President Trump’s threat of increased tariffs on Chinese goods and the EU’s proposed counter-tariffs against the U.S. are key drivers of this safe-haven demand. Looking ahead, the Federal Reserve’s meeting minutes, along with upcoming inflation and producer price data, will be closely scrutinized for clues regarding future monetary policy, which could further influence gold’s trajectory. Despite recent dips, gold has demonstrated substantial gains this year, indicating underlying strength in the market.

Asset Summary – Monday, 7 April

GBPUSD experienced a significant rise, reaching a six-month high of $1.3, primarily driven by a weakened US dollar. This dollar weakness stems from market anxieties surrounding newly announced US tariffs, including a 10% levy on UK imports. Investor concerns about the global economic impact of these tariffs have triggered a flight to safety, benefiting the pound. Furthermore, increased expectations of interest rate cuts by the Bank of England (BoE), as reflected in market pricing, are adding upward pressure on the GBPUSD, with markets now anticipating 62bps worth of cuts. The UK Prime Minister’s intention to act in Britain’s interest is likely a contributing factor to investor confidence in the pound.

EURUSD faces potential volatility and downward pressure. The weakening dollar initially supported the euro, but escalating trade war tensions introduce significant uncertainty. China’s retaliatory tariffs and potential EU countermeasures against US tariffs weigh on global trade, pushing the ECB towards a likely rate cut. Increased expectations for a lower ECB deposit rate by the end of the year signal a weakening Eurozone economy, which could diminish the euro’s appeal and lead to a decline in the EURUSD exchange rate, despite its current position near recent highs.

DOW JONES is facing significant downward pressure, suggested by the sharp decline in Dow futures. The aggressive tariff policies pursued by the White House, combined with retaliatory tariffs from China, Canada, and the EU, are fueling market uncertainty and prompting a selloff. The substantial losses already incurred by the Dow last week, coupled with the Trump administration’s steadfast stance on tariffs despite market reactions, indicate further potential for instability and decline in the Dow’s value.

FTSE 100 has experienced a decline in value since the start of 2025. Trading activity, as indicated by a contract for difference (CFD) that mirrors the index’s performance, reveals a decrease of 118 points, which translates to a 1.44% reduction in the index’s overall value. This suggests a negative trend in the performance of the leading companies listed on the UK stock market.

GOLD is experiencing downward pressure as investors sell off holdings to cover losses in other markets, reacting to a broader financial market downturn. Heightened trade war anxieties, driven by newly implemented and anticipated tariffs, are fueling recession fears, prompting liquidation of gold positions. Federal Reserve concerns about the inflationary and growth-dampening effects of these tariffs further contribute to the negative sentiment surrounding gold, suggesting a challenging near-term outlook for its price.