Trump's geopolitical & tariff tension: Will the dollar continue to strengthen?

thecekodok



The US dollar jumped in the middle of the fiscal certainty, the uncertainty of tariffs continued

The US dollar continued its rise on Friday, as the main index tracking the currency performance increased for the third consecutive session.


This is followed by a temporary expenditure bill that is expected to prevent government closure, thus reducing the huge uncertainty in the market.



However, concerns about US economic growth still haunt investors, especially with the aggressive tariff policy introduced by President Donald Trump.


The US treasury bond revenue declined after a spike on Thursday, which saw investors turn to safe assets such as gold, pushing the price of precious metal to the highest level of the time and strengthened the dollar momentum.


With Budget issues in Washington temporarily resolved, market focus is now shifting to broader macroeconomic risks, including increasing trade tensions and expected monetary policy changes in the Federal Reserve (Fed).


Geopolitics: As-Russian relations are the focus

In Europe, Russian President Vladimir Putin signals his willingness to discuss the ceasefire in Ukraine with Trump, but stressed that any agreement must lead to the long -term solution of the conflict.


At the same time, Washington has tightened restrictions on Moscow, including blocking payments for Russian energy exports, although diplomatic negotiations are still ongoing.


These geopolitical tensions continue to increase their uncertainty in the market, with investors closely monitoring any developments that may affect global risk sentiment.


Investor sentiment: Bonds are optional compared to equity

Market position data shows that investors are now more optimistic about US treasury bonds compared to equity, the highest in three years.


This reflects deep concerns over US growth prospects.


Trump -introduced tariffs to revamp global trade relations are increasingly seen as a threat to the US economic dominance.


In fact, the Trump administration reiterated its stance on Thursday that tariffs on steel and aluminum would remain, while additional tariffs against major trading partners may have come into force as early as April 2.


Commodity: Oil up, gold almost reached record level

In the commodity market, crude oil prices continue to rise after more stringent restrictions by the US have raised concerns over global supply.


Meanwhile, gold remains stable below the psychological level of $ 3,000 per ounce, maintaining its status as a major protective asset amid economic and geopolitical uncertainty.


Market Review: What's next?

With the threat of the government's closure, the market is ready to face the next wave of risk. Traders need to carefully monitor indicators of the federal reserve interest rate direction, any new tariff announcement, as well as geopolitical development, especially in US-Russian and US-China relations.


Volatility is still high, making a more strategic investment approach important in the coming weeks.

Tags