empty
14.04.2025 09:45 AM
The Uncertainty Factor Will Pressure the Dollar and Support Demand for Safe-Haven Assets (There is a likelihood of further decline in USD/JPY and rising gold prices)

Global markets remain heavily influenced by Donald Trump's erratic behavior. In his attempt to pull the U.S. out of severe economic dependence on imports, Trump continues to juggle the topic of tariff duties. Market participants remain mainly unresponsive to key economic data— especially from the U.S. — remaining instead under the strong influence of the chaos generated by the American president. And yet, that data signals significant changes in the national economy.

On Friday, a report on U.S. consumer inflation showed a notable slowdown in headline and core values. If this trend continues, it could become a strong signal for the Federal Reserve to proceed with interest rate cuts this year. However, amid this wave of positivity, one key factor must be considered — the turbulence surrounding Trump's tariff decisions. He softened his stance under domestic pressure by issuing a resolution to delay massive tariff plans for most trading partners by 90 days, settling on a 10% rate.

But this isn't a solution to the problem. It still looms. And while many begin to believe that Trump may yield under immense pressure, that may not happen, considering the personality traits of the 47th president. Also worth noting is that the U.S.'s largest trading partner, China, didn't bend to Washington's will and responded symmetrically.

In this environment of persistent uncertainty surrounding the future of the trade war, investors are trying to react locally. The market responded positively to the 90-day pause and the U.S. Consumer Price Index drop on Friday. Global stock indices gained solidly, and prices rose in the commodity markets. Meanwhile, the U.S. dollar, as expected, fell below the critical psychological level of 100.00 on the ICE index — and this decline continues this morning. The cryptocurrency market has slowed its upward movement, as the key factor of global economic uncertainty remains the primary constraint.

What can be expected in the markets today?

The positive reaction in the stock markets will likely fade against the backdrop of lingering uncertainty over the consequences of the trade wars launched by Donald Trump. The cryptocurrency market is expected to consolidate within a sideways range, as will prices in the commodity markets. However, the dollar is expected to continue declining, as falling inflation now adds to the negative pressure from the tariff narrative — and if inflation continues to fall, the Fed may be prompted to cut interest rates.

This image is no longer relevant

This image is no longer relevant

Day Forecast:

USD/JPY

The pair remains under intense pressure amid the negativity surrounding the dollar. Most likely, after breaking below the 142.35 support level — which previously served as a target — the pair may fall first to 141.60 and then to 140.60. A potential entry point could be at 142.15.

GOLD

Gold prices resumed growth under the influence of uncertainty. However, a pullback toward 3166.40 is possible before the next upward movement due to local overbought conditions. The entry point could be around 3194.48, with a short-term target of 3272.50.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Inflation Is Almost Under Control

While the euro continues to hold its ground against the dollar, European Central Bank (ECB) Governing Council member Fabio Panetta indicated during an interview today that inflation in the eurozone

Jakub Novak 13:40 2025-05-30 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is attempting to regain positive momentum today, though traders remain cautious ahead of the key U.S. Personal Consumption Expenditures (PCE) Price Index release. As a preferred inflation

Irina Yanina 13:22 2025-05-30 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair continues to struggle to recover after rebounding from the 1.1200 level reached earlier, showing a moderately negative bias, although the decline remains limited. The U.S. dollar

Irina Yanina 13:19 2025-05-30 UTC+2

Legal Disputes Between Trump and Companies Over Tariffs Will Negatively Impact Markets (There Is a Likelihood of Continued Decline in Bitcoin and Litecoin Prices)

Global markets are significantly influenced by events occurring in the United States, where both political and economic spheres continue to swing like a pendulum. Earlier this week, after the U.S

Pati Gani 11:11 2025-05-30 UTC+2

More Time is Needed

Dallas Federal Reserve Bank President Lorie Logan indicated yesterday that it might take some time before policymakers understand how the economy will react to tariffs and other policy changes

Jakub Novak 10:53 2025-05-30 UTC+2

The ECB Should Not Delay Rate Cuts

While the euro is trying to regain its monthly highs after a fairly significant correction seen this week, a survey of several economists shows that the European Central Bank

Jakub Novak 10:49 2025-05-30 UTC+2

Markets Demand an Appeal

The S&P 500 started the day strong but ended on a downbeat note. Initially buoyed by the U.S. Court of International Trade's ruling that the White House's tariffs were illegal

Marek Petkovich 10:33 2025-05-30 UTC+2

What to Pay Attention to on May 30? A Breakdown of Fundamental Events for Beginners

Several macroeconomic reports are set to be released on Friday, but none are deemed particularly significant. In Germany, the inflation report for May will be released, with expectations

Paolo Greco 06:51 2025-05-30 UTC+2

GBP/USD Overview – May 30: Justice Has Prevailed, but for How Long?

The GBP/USD currency pair closed below the moving average line on Thursday, and the dollar strengthened for three consecutive days. However, everything changed in the second half

Paolo Greco 03:51 2025-05-30 UTC+2

EUR/USD Overview – May 30: Checkmate to Donald Trump

The EUR/USD currency pair continued its slight downward movement on Thursday morning but surged sharply upward in the afternoon. We observed a strong emotional reaction from traders linked

Paolo Greco 03:51 2025-05-30 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.