Forex Friday

EURUSD, Nasdaq Forecast: With US-China trade talks in focus, a $200 drop in gold, and key earnings and data ahead, markets remain on edge as investors await confirmation on the next directional move in the US Dollar and equity indices.

Any further signs of stagflation in today's data should be bad news for both risk assets and the dollar. With trade war uncertainty in the foreground, the USD/JPY forecast remains bearish, with 140.00 now looking an increasingly likely target for the sellers.

EURUSD, USDJPY Forecast: China escalates the trade war, raising tariffs on US goods to 125% starting April 12. The Dollar Index drops below 100, lifting EURUSD above 1.14 and pulling USDJPY down to 142 ahead of key US bank earnings today.

Risk appetite took another big hit as China struck back with fresh tariffs of its own, following Trump’s big reciprocal tariffs announcement on Wednesday.

It feels like the whole world is on pause with as US president Donald Trump is gearing up to announce a sweeping new round of trade tariffs on 2nd April.

USDJPY, Gold Forecast: Tokyo’s core CPI data kept Bank of Japan (BOJ) rate hike expectations alive on Friday, with an uptick to 2.4%. Meanwhile, gold continues to thrive on safe-haven demand, reaching record highs above $3,080 per ounce.

The GBP/USD forecast will be in focus again with UK CPI and the Fed’s favourite inflation measure to come in the week ahead, along with global PMIs.

EURUSD, USDCAD Forecast: DXY's bearish momentum found key support, pushing EURUSD and USDCAD to critical levels ahead of potential long-term reversals.

The US dollar forecast remains modestly bearish following last week’s big drop, driven largely by the rallying EUR/USD pair on the back of the Germany’s big spending plans.

The USD/CAD started rising sharply on the back of Trump’s imposition of tariffs on Canada and Mexico, before falling back equally sharply this week when the US President significantly expanded the goods exempted from his new tariffs that were only imposed two days earlier. Then, today, we had jobs data from both North American nations causing even more volatility for the pair. If you think that was enough, the week ahead promising to further impact the USD/CAD forecast, with key US data and a rate decision by the Bank of Canada to come.

Optimism surrounding peace negotiations in Ukraine has provided modest support to the EUR/USD outlook. However, sentiment has taken a slight knock in recent days amid tariff concerns and a brewing dispute between President Donald Trump and Ukrainian President Volodymyr Zelenskiy. That said, hopes remain that a deal could eventually be reached.