Forex Today: Trump’s tariffs remain in centre stage ahead of US CPI

The Greenback added to Friday’s recovery and climbed to three-day highs on the back of the intense safe-haven demand in response to unabated trade tensions following President Trump’s tariffs. 

Here is what you need to know on Tuesday, April 8:

The US Dollar Index (DXY) rose to around 103.50, or three-day highs, helped by the prevailing risk-off sentiment and the rebound in US yields across the curve. The NFIB Business Optimism Index is due, followed by the API’s weekly report on US crude oil stockpiles, as well as the speech of the Fed’s Daly.

EUR/USD tumbled to two-day lows and revisited the sub-1.0900 region amid increasing concerns around the US trade policy and the US economy. The final Inflation Rate in Germany comes on April 11 along with Current Account results. 

GBP/USD plummeted to multi-week lows, revisiting the vicinity of the 1.2700 support and breaking below the key 200-day SMA. Next on the UK calendar will be the GDP prints, Goods Trade Balance, Industrial and Manufacturing Production, Construction Output, and the NIESR Monthly GDP Tracker, all on April 11.

USD/JPY built on Friday’s advance and climbed to two-day highs just past the key 148.00 hurdle. Next in Japan will be the Eco Watchers survey along with Current Account results and Bank Lending figures.

AUD/USD extended Friday’s deep retracement, challenging the 0.5900 level for the first time since March 2020. The Westpac Consumer Confidence gauge and the NAB  Business Confidence are due on April 8.

Prices of WTI dropped to more than three-year lows around the $59.00 mark per barrel amid unabated worries surrounding a potential global trade war and its direct impact on crude oil demand.

Gold prices dropped for the third consecutive day, breaking below the key $3,000 threshold per troy ounce amid the continuation of the sharp sell-off in stock markets worldwide. Silver prices retreated to levels last seen in September near the $28.00 mark per ounce before staging a decent comeback.