Last week began with relative calm but ended with risk aversion accelerating sharply, as investors shifted into defensive mode ahead of the long-anticipated April 2 “Liberation Day” – the date the US is expected to announce sweeping reciprocal tariffs.
By Friday, the cracks were clear: equities sold off, yields fell, and Gold surged to fresh record highs. The flight to safety is now well underway, and markets are no longer willing to wait for clarity.
While FX markets remained largely contained within prior-week ranges, sentiment clearly deteriorated. The US Dollar moved broadly sideways, with marginal changes despite slightly better-than-expected GDP and Core PCE data. The DXY closed at 104.011, just below the previous week’s level. The data wasn’t weak, but in the current environment, it wasn’t strong enough to shift the dial.
The Euro and Pound also traded quietly despite weaker PMI and CPI prints. However, EUR/USD price action late in the week hinted at potential upside, with some traders speculating that March’s Euro strength could morph into a meaningful breakout. April may prove decisive: either the Euro confirms a longer-term trend reversal, or March’s rally becomes yet another false dawn.
Commodity currencies pulled back slightly, with the AUD, NZD, and CAD all registering minor losses. The Norwegian Krone bucked the trend, rising 0.6% following a steady hand from Norges Bank. Elsewhere, the Swiss Franc gained 0.3%, while JPY and MXN both slipped 0.5%.
Despite global jitters, European assets showed continued resilience. German and UK equities outperformed US counterparts, and the Euro remained the strongest major currency for the month. However, with the global trade conflict escalating, Europe’s export-heavy economy faces growing downside risks.
Oil extended its rebound for a third consecutive week, with WTI climbing 1% to close at $68.97. Still, the rally remains unconvincing, driven more by technical factors than a shift in fundamental outlook. The broader trend remains fragile as global demand concerns persist.
The Week Ahead. The stage is set for a volatile and potentially historic week, as the US rolls out its new tariffs and the world watches for retaliatory measures. With sentiment already shaky, any policy misstep could amplify volatility.
Macro-wise, markets will be watching a wide range of global PMIs, Eurozone inflation data, the RBA interest rate decision, and the all-important US Nonfarm Payrolls at the end of the week.
Weekly Majors’ Market Performance
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The post Liberation Day Looms first appeared on trademakers.
The post Liberation Day Looms first appeared on JP Fund Services.
The post Liberation Day Looms appeared first on JP Fund Services.
