Week ahead: Global economic turbulence as Trump sets the tone

As the financial markets brace for another week of uncertainty, President Donald Trump has once again stirred debate with a series of bold moves. His renewed criticism of Federal Reserve Chair Jerome Powell – calling him “Mr. Too Late” and a “fool” – has put monetary policy back in the spotlight, while his direct call for Americans to buy stocks raises questions about market sentiment.

Beyond the economy, Trump’s push to raise taxes on individuals earning over $2.5 million to 39.6% marks a notable shift in fiscal policy discussions. Meanwhile, his call for a 30-day unconditional ceasefire between Russia and Ukraine introduces a new dimension to geopolitical conversations. As the week unfolds, investors, policymakers, and global leaders alike will be watching closely to see how these developments play out.

KEY ECONOMIC INDICATORS

Trade & Tariffs: Trade deal between the U.S. and the U.K.

• _{The U.S. keeps a 10% base tariff on U.K. goods, expands market access, removes tariffs on U.K. steel/aluminum, applies 0% tariffs on U.S. agricultural exports and introduces tiered tariffs on U.K. car imports.}
• _{The U.S. Trade Representative may enforce actions on imported services.}
• _{Trump announced a $10 billion Boeing aircraft deal with the U.K.}
• _{The U.S. Commerce Secretary aims to strike a trade deal with a major Asian country.}
• _{The E.U. may impose extra tariffs on $95 billion worth of U.S. goods if talks fail.}

U.K. Interest Rate

• _{The Bank of England cut rates by 25 basis points, but the decision was divided.}

Energy

• _{U.S. and Russia are reportedly exploring ways to resume natural gas supplies to Europe.}

MARKET MOVERS

XAU/USD

• _{Although the bulls are in control, the stalling positive momentum indicates a potential reversal.}
• _{While a corrective move lower is anticipated, a short-term bounce may occur before the next leg down.}
• _{Preference to sell into the trend.}

Trade Opportunity: Target 1: 3,210 / Target 2: 3,200

DAX40

• _{Short-term bias has shifted to the upside.}
• _{Market has posted four consecutive daily gains.}
• _{No clear signs of exhaustion in the current uptrend.}
• _{Attractive risk to reward setup for initiating long positions at market.}
• _{The 20-period 1-hour EMA is currently positioned at 22,150.}

Trade Opportunity: Target 1: 22,955 / Target 2: 23,055

USDJPY

• _{Registered modest daily gains, though price action remained within the range of the prior trading day – a sign showing indecision in the market.}
• _{Resistance is seen at 143.83, aligning with the 261.8% Fibonacci extension at 143.71.}
• _{While the expected move lower is corrective in nature, it presents a compelling risk to reward opportunity.}
• _{Medium-term bias remains neutral.}

Trade Opportunity: Target 1: 142.08 / Target 2: 141.5

NEWS HEADLINES

Washington’s power play: Trade, treasury and the Dollar

• _{U.S.-U.K. trade deal: President Trump announced a “breakthrough” trade agreement with the U.K., aiming to strengthen economic ties and reduce tariffs.}
• _{Dollar index: The U.S. Dollar Index rose 0.76% to 99.86, the highest level since April 10, signaling strong investor confidence.}
• _{Treasury Yields: The 10-year yield closed at 4.2740%, reflecting long-term market sentiment, while the 2-year yield settled at 3.7870%, which is more in-line with monetary policies.}

Crypto frenzy: Bitcoin breaks $100K, Ethereum soars

• _{Bitcoin surged over $5,000 to briefly touch $104,000 for the first time since early February. It was last traded at $102,773.}
• _{Ethereum jumped 20% on the day, now at $2,172.}

Precious metals under pressure

• _{Gold dipped 1.79% to close at $3,304.98/oz after touching a low of $3,290.}
• _{Silver fell slightly by 0.15% to $32.45/oz.}

Oil spikes: Trade deal and sanctions fuel market rally

• _{Oil prices jumped over 3% due to the U.K.-U.S. trade deal and U.S. sanctions on Iranian oil companies.}
• _{WTI crude rose 3.99% to $60.22/barrel.}
• _{Brent crude gained 3.69% to $63.17/barrel.}

The Surge in the stock markets: Crypto plays shine, tech giants climb

• _{Major U.S. stock indices posted gains, with the Dow Jones up 0.6%, the S&P 500 rising 0.58%, and the Nasdaq climbing 1.07%.}
• _{Crypto-related stocks led the rally, as Canaan surged 9%, Robinhood advanced 8%, and MicroStrategy gained 5%.}
• _{Tech giants performed well, with Google (GOOGL) increasing 2% and Tesla (TSLA) rising 3%.}
• _{The Nasdaq Golden Dragon China Index gained nearly 1%, driven by a 2% rise in Alibaba (BABA).}
• _{European markets saw solid gains, with the German index DAX up 1.02% and the Euro Stoxx 50 climbing 1.12%.}
• _{The U.K. FTSE 100 stood out as the exception, slipping 0.32%.}

Click here to open account and start trading.