Forex Today: Powell and the US NFP will be in the limelight

The Greenback tumbled to multi-month lows as market participants digested President Trump’s newly announced reciprocal tariffs, all against a backdrop of sharp losses in global stock markets and escalating concerns over a global trade war.

Here is what you need to know on Friday, April 4:

The US Dollar Index (DXY) almost fully faded the October-January rally, retreating to multi-month troughs in the low 101.00s amid an equally pronounced drop in US yields across the curve. The release of the Nonfarm Payrolls will be the salient event, followed by the Unemployment Rate and speeches by Chair Powell, Waller, and Barr.

EUR/USD advanced markedly and revisited the 1.1150 region for the first time since early October. Germany’s Factory Orders are due along with the HCOB Construction PMI in Germany and the EMU, all ahead of the speech by the ECB’s De Guindos.

GBP/USD briefly surpassed the 1.3200 barrier to hit new six-month peaks following the important decline in the Greenback. The final S&P Global Construction PMI will be published.

USD/JPY extended its bearish move to six-month troughs near the 145.00 support on the back of increased safe haven demand post-Trump’s tariffs. The Household Spending figures are due in the Japanese docket.

AUD/USD rose for the third consecutive day, this time approaching the key resistance area around the 0.6400 barrier. Next on tap in Oz will be the Consumer Confidence gauge tracked by Westpac, due on April 8.

WTI prices collapsed to the area of yearly lows in the sub-$66.00 region per barrel amid the generalised sour sentiment as traders adjusted to Trump’s tariffs.

In a volatile day, Gold prices settled above the $3,100 mark per troy ounce, down mildly for the day despite hitting an all-time peak near $3,170 early in the session. Silver prices tumbled heavily to four-week troughs below the $32.00 mark per ounce.