Financial Market Newsletter

IMF warned that this global realignment may usher in an era in which the U.S dollar plays a less central role in the international financial system.

The USD fell sharply on Monday, dropping by 1,09% to 98,3 - its lowest level in 3 years - as market confidence in the U.S economy continued to erode.

The USD Index opened the first trading day of this week at its lowest level in a year, falling to 98,7 level.

The ECB is forecasted to implement 3 additional rate cuts this year, while the euro continues its strong appreciation against the USD (+9,83% year-to-date), with a target level of $1,20 anticipated in the first half of 2025.

The USD continued to weaken on Wednesday, falling 0,82% as markets awaited clarity on whether the Trump administration will reach new trade agreements with key partners.

Barclays Bank estimates that the CNY could depreciate sharply toward 9 per dollar, down from the current level of 7,3, to absorb the impact of the steep 145% U.S tariff rate.

China’s exports surged by 12,4% year-on-year in March, significantly above the 2,3% growth recorded in the first two months of the year and well beyond the 4,4% forecast.

The USD continued to weaken against major currencies on Friday as the deepening tariff war and mounting policy uncertainty eroded investor confidence.

The Consumer Price Index (CPI) dropped to an annual rate of +2,4%, below the earlier forecast of +2,6%.