Should investors be wary of the upside potential for the U.S. dollar, which rose following U.S. President Trump’s remarks about suspending tariffs?

Should investors be wary of the upside potential for the U.S. dollar, which rose following U.S. President Trump’s remarks about suspending tariffs?

10.04.2025

In the U.S. currency market the previous day, the U.S. dollar strengthened toward the end of the U.S. trading session following reports that President Trump had announced a 90-day suspension of reciprocal tariffs. The EUR/USD pair fell from 1.1094 to 1.0914, moving from above the 20-period moving average (MA) on the hourly chart to below it.On the 4-hour chart, the pair has pulled back after being capped by the +2σ Bollinger Band, while on the daily chart, support at the 10-period moving average continues to hold.

Among European currencies, the pound rose against the US dollar. The GBP/JPY pair rose from 184.388 to 189.813.The pair rebounded to the 200-period EMA on the hourly chart. While the RSI on the 4-hour chart has risen from 19 to 54, the daily chart continues to trade below the 20-period MA. We will be watching to see if the pound’s rebound holds during European trading hours.

Today’s economic indicators include the UK RICS House Price Index at 8:01, Japan’s Domestic Corporate Goods Price Index at 8:50, Japan’s Foreign/Inbound Securities Investment at 8:50; a speech by RBA Governor Block at 19:00; South African Manufacturing Output at 20:00; U.S. Initial Jobless Claims and U.S. Consumer Price Index at 21:30; and Canadian Housing Starts atat 10:00 p.m., remarks by U.S. Federal Reserve Vice Chair Breeden; at 11:00 p.m., remarks by U.S. Federal Reserve Governor Bowman; and at 11:30 p.m., U.S. weekly natural gas inventories. Investors should watch for upside potential in the U.S. dollar, which has risen following U.S. President Trump’s remarks regarding a tariff suspension.