The dynamics of the trade war have once again stirred up the global financial markets. This time, there is good news as the President of the United States, Donald Trump, has decided to delay the reciprocal policy for 90 days. As a result, countries that were previously facing high import tariffs will now see those tariffs reduced to 10% unless they retaliate against the U.S. by increasing their own tariffs.
Despite Trump postponing the reciprocal measures for nations he claims “respect” U.S. policies, tariffs on China were raised to 125%, up from 104%. This hike followed China’s increase of tariffs on American products to 84% the day before.
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This sentiment continues to influence market movements on Thursday’s trading session (April 10, 2025).
GOLD
The price of Gold (XAUUSD) surged by more than $100 on Wednesday, reaching $2,982.57 per troy ounce. By midday, it had climbed further to $3,131.68 per troy ounce.
Trump’s actions could indicate that the trade war is now primarily focused on China, reminiscent of the events between 2018 and 2019. This trade conflict has caused a slowdown in global economic growth and increased demand for Gold as a safe haven asset. This sentiment is expected to continue impacting Gold prices during the European trading session.
OIL
Oil prices (CLS10) jumped $4.73 to $62.68 per troy ounce on Wednesday, recovering from a prior drop to $55.10 per troy ounce, which was the lowest level since January 2001.
Trump’s delay on the reciprocal policy has generated a positive sentiment for Oil. However, given that the trade war with China is intensifying and the significant rise in prices on Wednesday, there is potential for profit taking during the European trading session.
EURUSD
EURUSD initially surged by about 140 pips yesterday before reversing and closing on Wednesday at 1.09447. Compared to the Tuesday close, EURUSD was down slightly by 108 points (10.8 pips).
Trump’s postponement of the reciprocal policy has strengthened the US dollar, as concerns regarding an economic slowdown in the United States have diminished. Nevertheless, potential postponement of reciprocal tariffs for the European Union could yield positive sentiment for EURUSD.
GBPUSD
GBPUSD achieved a two-day upward streak after closing on Wednesday at 1.28206. Compared to the Tuesday closure, GBPUSD rose by 593 points (59.3 pips).
The rise in GBPUSD followed Trump’s delay of the reciprocal policy. The risks of a global economic slowdown appear to have decreased, and the British economy remains relatively strong, allowing GBPUSD to rise for two consecutive days. Currently, positive sentiment surrounds GBPUSD.
USDJPY
USDJPY soared 1,468 points (146.8 pips) to 147.708 on Wednesday after previously dropping to 143.995. However, in today’s trading, USDJPY has reverted back to 146.605.
This movement indicates a tug-of-war sentiment between the US dollar and the yen, both of which are considered safe haven assets. Given the intensifying trade conflict between the U.S. and China, USDJPY may continue to face downward pressure due to significant risks of an economic slowdown in the United States.
Nasdaq
The Nasdaq index soared 2,124 points, or over 12%, reaching 19,350 on Wednesday. This increase marks the largest daily gain since January 2001. Trump’s delay of the reciprocal policy led to an immediate spike in the Nasdaq.
However, following such extraordinary gains and the escalating U.S.-China trade war, there may be a potential for profit taking during the European trading session.
