EUR and GBP Capitalise on USD Weakness
As the U.S. dollar stumbled, the Euro and British pound quietly gained momentum. The euro emerged as a preferred refuge amid widespread uncertainty, supported by Europe’s relative political stability and encouraging economic indicators. At the same time, the British pound was strengthened by market speculation that the Bank of England would pause or slowdown interest rate cuts, offering investors a degree of confidence.
This widening gap between U.S. and European monetary paths created fertile ground for traders, sparking heightened activity and opportunities in the EUR/USD and GBP/USD currency pairs throughout the month. Investors actively adjusted their positions to capitalise on the contrasting policy expectations and geopolitical factors influencing these currencies.
Yen Climbs on Safe Haven Status.
The Japanese yen made a robust comeback as investors sought safety amid rising geopolitical tensions and market volatility. Its appeal was reinforced by the Bank of Japan’s steadfast commitment to ultra-loose monetary policy, contrasting with the uncertain stances of other central banks. As risk aversion grew, capital flowed into the yen, further boosted by the unwinding of carry trades—cementing its role as a safe-haven asset during the month’s market turbulence.
Dollar Index Tumbles, Stocks Rebound.
April was a turbulent month for the global foreign exchange market, marked by significant volatility driven by geopolitical tensions, shifting U.S. economic policies, and central bank actions.
The U.S. dollar took a sharp nosedive, hitting its lowest point in three years. The plunge was sparked by President Trump’s fresh salvo of tariff threats, sending shockwaves through the markets and stoking fears of an intensifying trade war with far-reaching economic fallout. On top of that, disappointing inflation numbers and growing speculation that the Federal Reserve might soon ease interest rates piled on the pressure, driving the dollar further down the slippery slope.
Gold prices ascended to new record highs, with spot gold reaching $3,128.06 per ounce and U.S. gold futures closing at $3,151.10 per ounce. This remarkable appreciation represents an 18% increase year-to-date in 2025, following a substantial 27% gain in 2024, underscoring gold’s enduring role as a strategic asset amid prevailing economic uncertainties. This was fuelled by several key factors. First, President Trump’s sweeping tariff announcements sparked fears of an economic slowdown and inflation, driving investors toward gold as a safe haven. Second, a sharp selloff in global equities—triggered by the tariffs—amplified market volatility and further boosted demand