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The US Dollar Index (DXY), which measures the US Dollar (USD) against a basket of six major currencies, is remaining below 99.50 during the early European hours on Friday. The Greenback remains subdued amid growing concerns over the economic impact of tariffs on the United States (US).

The Australian Dollar (AUD) remains subdued on Friday following a seven-day winning streak. However, the AUD/USD pair may regain its ground as the US Dollar (USD) weakens amid growing concerns over the economic impact of tariffs on the United States (US).

The Gold price (XAU/USD) holds steady on Friday after retreating from an all-time high of $3,358 as investors book profits during a long Easter weekend.

USD/CHF slipped slightly during Friday’s Asian trading hours, hovering around 0.8180, after posting gains in the previous session. The pair is under pressure as the US Dollar weakens amid mounting concerns over the economic fallout from US tariffs.

• Inflation risk from trade tensions seems weak and could even be downward.
• Inflationary risk from a few weeks ago has gone.
• We are ready to act quickly depending on the data.
• We are in a “very choppy sea”.
• Agile pragmatism applies to the latest decision.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

The EUR/JPY cross trades flat near 161.85 during the early European session on Friday. US President Donald Trump’s trade war remains a source of deep uncertainty. However, Trump on Thursday offered some encouraging signals that negotiations with other countries could lead to lower tariffs.

• We need to determine whether it’s possible to end the war in Ukraine.
• Talking about a matter of days to make that clear.
• If not possible, the President will possibly say “we’re done”.
• We need to determine quickly whether it’s doable.
• If not possible, we have other priorities.
• Had positive meetings on Thursday.
• Hope to hear back from Ukrainians soon.
• If it’s not possible to end the war in Ukraine, we need to move on.
• There are a lot of other things going on in the world.
• We recognise Ukraine wants to feel it will be able to defend itself.
• We want to avoid thousands of people dying in the next year.
• If both sides are serious about peace, then we want to help, otherwise we will move on.
• We recognise European states have a stake in this.
• If peace in Ukraine is not about to happen, we need to know now.
• Spoke to Russia’s Lavrov on Thursday.
• Wanted Russia to know France and UK were constructive.

This reads like an ultimatum. The US either closes a peace deal soon, or it will abandon the mission.

This article was written by Giuseppe Dellamotta at www.forexlive.com.