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Hello everyone, today XM Forex will bring you "[XM Forex Decision Analysis]: Trump threatens to impose tariffs again to suppress the US dollar, and gold breaks record highs again." Hope this helps you! The original content is as follows:
Markets started the week taking a cautious stance after U.S. President Donald Trump announced late on Friday that he would impose 100% tariffs on Chinese imports. There won't be any high-level data released on Monday's economic calendar, so risk sentiment will remain the main market driver.
In an article published late Friday on TruthSocial, Trump said he had learned that China had taken an "unusually aggressive stance" on trade, telling trading partners they would impose massive export controls on nearly everything they produce.
“Based on China taking this unprecedented position, and on behalf of the United States only, and not other similarly threatened countries, beginning November 1, 2025 (or earlier, depending on any further actions or changes by China), the United States of America will impose 100% tariffs on China, higher than any tariffs they currently pay,” Trump responded.
The U.S. dollar (USD) came under heavy selling pressure this weekend, with major Wall Street indexes falling sharply. After falling more than 0.5% on Friday and ending a four-day winning streak, the U.S. dollar index recovered slightly to around 99.00 in early European trading on Monday. Meanwhile, U.S. stock futures rose 1% to 2%. The U.S. bond market will remain closed for the Columbus Day holiday on Monday, but both the New York Stock Exchange (NYSE) and the Nasdaq will be open during normal hours.
EUR/USD struggled to build on Friday’s gains and stabilized around 1.1600 during European time. French President Emmanuel Macron reappoints Prime MinisterSebastien Lecornu, who is now expected to submit his 2026 budget before Tuesday's deadline.
GBP/USD remains under mild bearish pressure, trading just below 1.3350 on Monday morning. On Tuesday, the Office for National Statistics will publish labor market data for September.
USD/JPY opened with a bullish gap after falling more than 1% on Friday and continued to move higher during the European trading session. As of press time, USD/JPY rose more than 0.7% on the day to 152.30.
In terms of edoyoko.commodities, as a hedge against fiscal and political uncertainty, gold demand was strong, rising 0.8% to US$4,049, and briefly exceeded last week's record high to US$4,059.
Oil prices rebounded on expectations that China and the United States may edoyoko.compromise. Brent crude oil rose 1.6% to $63.74 a barrel, and U.S. WTI crude oil rose 1.6% to $59.88 a barrel.
Euro: The intraday bias of EUR/USD remains neutral, and some consolidation may occur above 1.1540. As long as the 1.1778 resistance holds, further losses are expected. On the downside, a break above 1.1540 will resume the decline from 1.1917 to 1.1390, or fall further to 1.1252, the 38.2% retracement of 1.0176 to 1.1917.
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