The President did not hold back on his promises of incoming harsh trade limitations. He announced a 10% minimum tariff on all US imports and increased duties on numerous countries, including key trading partners like Japan and the Eurozone countries.
Here are some of the decisions he showed the world on a big board: UK 10%, Europe 20%, Japan 24%, South Korea 25%, South Africa 30%, Switzerland 31%, Taiwan 32%, Indonesia 32%, China 34%, and Vietnam 46%.
The scale of this tariff intervention is likely to cause heavy disruptions in the global supply chains, driving up inflation and augmenting global geopolitical tensions and economic uncertainty.
Remember that, at the same time, Trump threatened to bomb Iran if the countries fail to find common ground on Iran’s nuclear development plans, and the US military presence in the Middle East is quickly ramping up.
We have been telling you for a long time now which assets and in which direction you should trade medium-to-long-term. Let’s break it down another time and provide additional information.
Gold
XAUUSD surged as soon as “the board” was shown. As a result, a new ATH of $3168/oz was reached before the metal proceeded to cool down. The bullish scenario is stronger than ever before.
Long-term entry points: At the market ($3125/oz), $3100/oz, $3075/oz, $3060/oz. The targets remain at $3200/oz and $3400/oz.
Nasdaq
NASDAQ-100 dropped -5.2% (US500 -4.53%) in a matter of 15 minutes on “the board” reveal, touching 18,700 before rebounding out of oversold zone. The targets remain the same – 18,400 and 17,400 to begin with, and a stronger bear market to be expected if the escalation continues. The US stock market bubble is slowly starting to collapse.
Bitcoin
BTC followed the normal dynamic of US equities (-7.15% from peak to bottom), touching $88,500 once again and returning to $82,000. If the NFP report and the consequent Powell speech fail to provide hints on Quantitative Easing, the crypto flagship, along with the whole crypto market, is more likely to be expected to fall.
The targets of such a move are still the same: $77,000 to begin with. Enter on a technical rebound: $84,600 and $85,300.
EURUSD
Here, the plot thickens. Although tariffs of 20% were pledged for the EU, the Fiber went higher (because the US Dollar Index went quickly lower, not because the EUR strengthened). European leaders proclaimed they were ready to face this trade war. As investors flee the Dollar, the Euro might become a preemptive stop for most of those who want to store their money in a safe currency. Ultimately, however, a trade escalation with the US, which is the biggest trading partner of the Union (20% of exports, 13,7% of imports in 2024) could weaken the Euro.
The pair returned to 1.09898 and is retracing at the time of writing. Monitor tomorrow’s NFP data and Powell's comments to understand the likely future dynamics. If new quantitative easing and rate cuts are considered possible, the EURUSD might go higher (target for this scenario: 1.12102).
Jakarta Composite Index
COMPOSITE quotes are frozen due to national holidays and won't open before next week. Considering how strong the influence of US-led policies is on the Indonesian economy, and looking at how other Asian countries reacted to the news (Vietnam's benchmark stock index -5.4%, Korean benchmark -2.8%, etc), next week's market opening looks glum for the Composite.
Our targets remain the same for this stock index: 5,750 points (in case tariff no tariff negotiations reverse this situation).Tariff Announcement Aftermath: Here’s What You Should Do!
The President did not hold back on his promises of incoming harsh trade limitations. He announced a 10% minimum tariff on all US imports and increased duties on numerous countries, including key trading partners like Japan and the Eurozone countries.
Here are some of the decisions he showed the world on a big board: UK 10%, Europe 20%, Japan 24%, South Korea 25%, South Africa 30%, Switzerland 31%, Taiwan 32%, Indonesia 32%, China 34%, and Vietnam 46%.
The scale of this tariff intervention is likely to cause heavy disruptions in the global supply chains, driving up inflation and augmenting global geopolitical tensions and economic uncertainty.
Remember that, at the same time, Trump threatened to bomb Iran if the countries fail to find common ground on Iran’s nuclear development plans, and the US military presence in the Middle East is quickly ramping up.
We have been telling you for a long time now which assets and in which direction you should trade medium-to-long-term. Let’s break it down another time and provide additional information.
Gold
XAUUSD surged as soon as “the board” was shown. As a result, a new ATH of $3168/oz was reached before the metal proceeded to cool down. The bullish scenario is stronger than ever before.
Long-term entry points: At the market ($3125/oz), $3100/oz, $3075/oz, $3060/oz. The targets remain at $3200/oz and $3400/oz.
Nasdaq
NASDAQ-100 dropped -5.2% (US500 -4.53%) in a matter of 15 minutes on “the board” reveal, touching 18,700 before rebounding out of oversold zone. The targets remain the same – 18,400 and 17,400 to begin with, and a stronger bear market to be expected if the escalation continues. The US stock market bubble is slowly starting to collapse.
Bitcoin
BTC followed the normal dynamic of US equities (-7.15% from peak to bottom), touching $88,500 once again and returning to $82,000. If the NFP report and the consequent Powell speech fail to provide hints on Quantitative Easing, the crypto flagship, along with the whole crypto market, is more likely to be expected to fall.
The targets of such a move are still the same: $77,000 to begin with. Enter on a technical rebound: $84,600 and $85,300.
EURUSD
Here, the plot thickens. Although tariffs of 20% were pledged for the EU, the Fiber went higher (because the US Dollar Index went quickly lower, not because the EUR strengthened). European leaders proclaimed they were ready to face this trade war. As investors flee the Dollar, the Euro might become a preemptive stop for most of those who want to store their money in a safe currency. Ultimately, however, a trade escalation with the US, which is the biggest trading partner of the Union (20% of exports, 13,7% of imports in 2024) could weaken the Euro.
The pair returned to 1.09898 and is retracing at the time of writing. Monitor tomorrow’s NFP data and Powell's comments to understand the likely future dynamics. If new quantitative easing and rate cuts are considered possible, the EURUSD might go higher (target for this scenario: 1.12102).
Jakarta Composite Index
COMPOSITE quotes are frozen due to national holidays and won't open before next week. Considering how strong the influence of US-led policies is on the Indonesian economy, and looking at how other Asian countries reacted to the news (Vietnam's benchmark stock index -5.4%, Korean benchmark -2.8%, etc), next week's market opening looks glum for the Composite.
Our targets remain the same for this stock index: 5,750 points (in case tariff no tariff negotiations reverse this situation).Publication date:
2025-04-03 21:51:42 (GMT)
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