Market Overview
- The forex market experienced significant movements following statements from the Bank of Japan and the announcement of new tariffs by US President Trump.
- The USD/JPY pair rose slightly in response to the Bank of Japan's Deputy Governor Shinichi Uchida's statement about potential interest rate hikes, reflecting an improvement in the Japanese economy.
- The USD/JPY pair also saw a slight increase after Japan's Finance Minister Shunichi Kato expressed concerns about US tariffs but refrained from commenting on foreign exchange.
- The US Dollar Index increased marginally after a lawsuit was filed against President Trump's tariffs on Chinese imports.
- Major currency pairs like EUR/USD and GBP/USD saw significant surges due to weakening US Dollar caused by tariff announcements.
- Gold prices rebounded to around $3,115 due to heightened economic uncertainty supporting safe-haven demand.
Fundamental Analysis
- The Bank of Japan's decision to potentially raise interest rates was driven by rising Japanese inflation and prospects of increasing salaries in the country.
- Concerns over US tariffs impacting the Japanese economy and trade systems were expressed by Japan's Finance Minister Shunichi Kato.
- A lawsuit against President Trump's tariffs on Chinese imports was filed by the New Civil Liberties Alliance, claiming he exceeded his authority under the International Emergency Economic Powers Act.
- IMF Managing Director Kristalina Georgieva expressed concern over the significant risk to the global economy posed by US President Donald Trump's recent tariffs announcement.
Technical Analysis
- EUR/USD surged 1.8% on Thursday, surpassing 1.1000, as the US Dollar weakened due to tariff announcements.
- GBP/USD reached new six-month highs before retreating, remaining bullish despite hitting 1.3200.
- USD/JPY was down 0.01% at 146.06 due to concerns over new tariffs imposed by the US.
- The NZD/USD pair traded near the 0.5800 zone on Thursday, showing positive momentum with a buy signal from MACD.
- AUD/JPY traded near the 92.40 zone on Thursday, showing a bearish trend with signals from MACD and Awesome Oscillator indicating selling pressure.
- The USD/CHF pair dropped to the 0.8600 zone, its lowest level since October 2024, due to US tariffs causing global portfolio adjustments and bearish pressure on the US Dollar.
Conclusion
- The market outlook remains uncertain due to the potential impact of new tariffs and central bank decisions.
- Trading opportunities may arise from price action in major currency pairs and gold, with potential shifts in investor sentiment and economic trends.
