Markets Keep Steady During Fed Reassures, Tariff Fears (04.24.2025)

The euro held near $1.1350 on Thursday as concerns over Fed independence eased but skepticism toward the U.S. dollar lingered. 

The yen gained on renewed U.S.-China trade friction, while gold rebounded toward $3,360 as negotiations stalled. Silver surged above $33.50, supported by both safe-haven demand and industrial optimism. The British pound remained resilient near $1.3280 as Trump’s support for Powell helped stabilize investor sentiment. Traders now await further signals from ongoing global tariff discussions and upcoming economic releases.

Euro Holds Ground as Dollar Doubts Linger

The euro hovered near $1.1350 on Thursday, just below its recent peak of $1.15, supported by easing concerns over Federal Reserve independence and growing skepticism about the U.S. dollar’s global dominance. Although the dollar briefly recovered after President Trump reaffirmed support for Fed Chair Powell, the euro gained more than 5% in April. Further support came from Germany’s increased defense spending and expectations of a 25-basis-point ECB rate cut to 2.25%, with additional easing likely due to escalating trade tensions.

Key resistance is at 1.1460, followed by 1.1580 and 1.1680. Support lies at 1.1260, then 1.1200 and 1.1150.

Yen Rises on Renewed Trade Tensions

The Japanese yen strengthened past 143 per dollar on Thursday, snapping a two-day decline as renewed trade tensions drove demand for safe-haven assets. Market sentiment shifted after reports suggested the U.S. may consider lowering tariffs on Chinese goods, prompting a cautious response from Beijing. However, Treasury Secretary Bessent said no talks have begun and no tariff cuts are planned. Separately, the U.S. declined Japan’s request for exemptions under existing tariff policies.

Key resistance is at 144.00, with further levels at 145.90 and 146.75. Support stands at 139.70, followed by 137.00 and 135.00.

Gold Climbs as US-China Tariff Talks Stall

Gold edged closer to $3,360 on Thursday, rebounding after a two-day decline as US-China trade uncertainty continued to support safe-haven demand. Treasury Secretary Bessent noted that tariff relief is needed for talks to advance, although President Trump ruled out unilateral cuts. Meanwhile, proposed exemptions for automakers helped ease market concerns. Gold remains up over 30% year-to-date, with the gold-to-silver ratio near its highest level since 1994, excluding the pandemic period.

Key resistance is at $3410, followed by $3,500 and $3,600. Support stands at $3315, then $3290 and $3250.

Pound Resilient Amid Easing Policy Jitters

The British pound held firm at around 1.3280 on Thursday morning, maintaining levels seen in the previous session. Support came after comments from U.S. President Donald Trump helped calm markets, especially his confirmation that there are no intentions to dismiss Federal Reserve Chair Jerome Powell. The statement was welcomed by investors, reinforcing confidence in the Fed’s independence and the broader stability of U.S. monetary policy.

If GBP/USD breaks above 1.3430, resistance levels are at 1.3500 and 1.3550. Support is at 1.3200, followed by 1.3050 and 1.2960.

Silver Jumps Above $33.50 on Trade Optimism

Silver rose over 3% to above $33.50 per ounce on Wednesday, rebounding alongside other commodities as U.S.-China trade sentiment improved. Unlike gold, which retreated from record highs on easing safe-haven demand, silver benefited from its role in both precious and industrial markets. Optimism followed President Trump’s comments that future tariffs on Chinese goods may be reduced, and his reassurance about keeping Fed Chair Powell supported broader market confidence.

Technically, resistance is seen at $33.80, followed by $34.20 and $34.85, while support stands at $33.15, then $31.40 and $30.20.