10/04/2025 - 07:50 UTCThe U.S. Dollar Index (USDX) hovered near the 103.00 mark on Wednesday, regaining some ground after recent selling pressure pushed it below 102.00. The modest rebound followed the release of the Federal Reserve’s March meeting minutes, where officials emphasized the “difficult tradeoffs” ahead—balancing persistent inflation risks with signs of slowing growth.
FOMC participants broadly agreed to maintain current rates, citing sticky inflation and growing uncertainty around trade and the economic outlook. Policymakers also acknowledged rising downside risks to the labor market and noted that navigating between inflation control and employment support may grow more complex if tariff disruptions persist.
Japan’s Nikkei 225 surged on Wednesday, staging a sharp rebound as investors poured back into oversold stocks after President Donald Trump unexpectedly announced a 90-day suspension of tariffs on most U.S. trading partners—excluding China. The move boosted risk sentiment globally and marked a dramatic turnaround following days of intense market volatility. Wall Street rallied in response, with the Dow soaring 7%, the Nasdaq up 10%, and the S&P 500 climbing 8.6%. However, the upbeat mood was partially offset by an escalation in U.S.-China trade tensions, as Trump simultaneously raised tariffs on Chinese goods to 125%, triggering an immediate retaliatory response from Beijing.
On the crypto front, the market staged a strong rebound on Wednesday, with total cryptocurrency market capitalization surging back above $2.7 trillion. The sharp uptick followed President Donald Trump’s unexpected move to lower tariffs on all U.S. trade partners to a flat 10%—excluding China, which now faces a 125% duty. The shift in trade policy reignited appetite for risk assets, propelling crypto prices higher alongside a global equity rally. Bitcoin (BTC) led the charge, soaring 8.4% on iForex platform on Wednesday to end the day above the $82,600 Level after dipping as low as $74,600 earlier in the session. Altcoins also outperformed, with Solana (SOL) jumping 12.93%, while Ethereum (ETH) rebounded 13.39% as investors scooped up oversold assets.
Markets now turn to key U.S. data releases, with the Consumer Price Index (CPI) inflation figures due Thursday, followed by the Producer Price Index (PPI) and University of Michigan (UoM) Consumer Sentiment Index on Friday. These reports will mark the final major inflation and sentiment readings from the pre-tariff phase of 2025, setting important benchmarks for policymakers and investors as they navigate the post-tariff landscape for the remainder of the year. Investors also focus on remarks from FOMC members for further clarity on the Fed’s policy path, especially as the baseline outlook continues to point toward eventual rate cuts amid weakening GDP projections for 2025 and 2026.
The EUR/USD traded between gains and losses on Wednesday ending the session slightly lower, as broader market sentiment improves following a shift in U.S. trade policy.
Investor sentiment received a boost after U.S. President Donald Trump announced via social media that his administration would delay the implementation of “reciprocal” tariffs for 90 days. However, a 10% blanket tariff remains a looming possibility, tempering the market's enthusiasm. While the euro briefly pushed above the 1.1100 level in initial reaction to the news, the rally quickly lost steam, leaving the pair stuck in familiar territory.
Meanwhile, rate expectations have shifted significantly. Federal Reserve rate swap markets are now pricing in 75 basis points of rate cuts for the remainder of 2025, a notable pullback from earlier forecasts.
Attention now turns to key U.S. economic data scheduled for release this week. Thursday will see the publication of Consumer Price Index (CPI) inflation figures, followed by Producer Price Index (PPI) data and the University of Michigan Consumer Sentiment Index on Friday.
The price of gold edges higher on Wednesday ending the session above the level of $3,080 supported by increased safe-haven demand as trade tensions between the United States and China escalate.
On Wednesday, U.S. President Donald Trump announced a 90-day pause on new tariffs for most U.S. trade partners, lowering tariffs to 10% to allow for trade negotiations. However, Trump also raised tariffs on imports from China to 125%, citing what he described as China's lack of respect for global markets.
The growing economic uncertainty, coupled with concerns that Trump's tariff policies could trigger inflation and slow economic growth, has provided a boost to gold, a traditional safe-haven asset.
Traders will now turn their attention to the U.S. Consumer Price Index (CPI) report, set for release later Thursday. Any signs of stronger-than-expected inflation could support the U.S. dollar, potentially putting downward pressure on the price of gold, which is denominated in USD.
Oil prices surged on Wednesday, recovering from four-year lows earlier in the session, following comments from U.S. President Donald Trump regarding trade tariffs on China.
Trump authorized a 90-day pause on most new tariffs for other U.S. trade partners but raised tariffs on Chinese goods to 125%, effective immediately. In retaliation, China announced an 84% tariff on U.S. goods, set to take effect Thursday.
However, analysts cautioned that the escalating trade war continues to weigh on oil prices.
In the U.S., crude inventories rose by 2.6 million barrels to 442.3 million barrels, according to the Energy Information Administration (EIA), surpassing analysts' expectations of a 1.4-million-barrel increase.
U.S. stock index futures saw gains on Wednesday, following a sharp rally on Wall Street after President Donald Trump announced a 90-day pause on reciprocal tariffs, while simultaneously escalating tariffs on Chinese imports.
Trump's announcement was met with a positive market reaction. The US 500 surged 11.22% on Wednesday, marking its best single-day performance since the 2008 financial crisis. The US Tech 100 rose 13.61%, its largest daily gain since 2001, driven by optimism surrounding the easing of trade tensions for U.S. tech firms. The US 30 also saw a notable rise, closing 9.67% higher.
The technology sector saw a sharp rebound, with major players in the "Magnificent 7" experiencing significant gains. Tesla soared 22.91%, while NVIDIA jumped 18.58%. Apple climbed to 14.69%, and Arm Holdings advanced 24.24%. Amazon rose 11.73%, while Meta Platforms gained 14.73%.
Investors are now focused on the upcoming U.S. Consumer Price Index (CPI) report, scheduled for release on Thursday, which will provide further insight into the nation’s inflation outlook.
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