Global Market Snapshot 7th April 2025

Last week, U.S. President Donald Trump officially announced the long-anticipated reciprocal tariff policy, sending shockwaves through global financial markets. The aggressive tax rates, wide-reaching scope, and complex execution of this trade policy stunned the world. What could have been a short-term fluctuation rapidly evolved into a broader risk event, triggering widespread sell-offs across financial markets.

In response, Vietnamese General Secretary Nguyen Phu Trong reached out to Trump by phone, proposing zero tariffs on Vietnamese exports to the U.S. in exchange for equal treatment. Meanwhile, European Commission President Ursula von der Leyen issued a strong statement emphasizing Europe’s advantage in tech leadership and market size. She warned that if negotiations fail, the EU is prepared to respond with firm and coordinated countermeasures.

The tone and manner of U.S.-EU negotiations will be crucial in determining whether the world slides into a full-scale global trade war, or if tensions can be diffused.

Weekly Technical Outlook

EUR/USD

• Last week, EUR/USD rebounded from 1.0763 to a high of 1.1147 before pulling back.
  
• This week’s trend appears neutral and consolidative.
  
• Support: 1.0730 — A break below this could signal a deeper correction.
  
• Resistance: 1.1147 — A breakout here could shift the trend to bullish.
  

USD/JPY

• The pair fell from 150.49 to a low of 144.52, followed by a mild rebound.
  
• The trend is expected to remain range-bound in early trading this week.
  
• Resistance: 151.28 — Continued failure to break this level could lead to a bearish outlook.
  
• Support: 144.52 — A breakdown would confirm a renewed downtrend.
  

GBP/USD

• GBP/USD peaked at 1.3206 last week before retreating, suggesting a potential short-term top.
  
• The outlook for this week is bearish.
  
• Support: 1.2546 — A break here opens the door to 1.2331.
  
• Resistance: 1.3206 — A breakout would revive bullish momentum.
  

USD/CHF

• USD/CHF dropped sharply from 0.8853 to a low of 0.8475, then staged a minor rebound.
  
• This week’s trend is neutral, with potential trading opportunities within the range.
  
• Resistance: 0.8862 — A breakout would turn the trend bullish.
  
• Support: 0.8475 — A breakdown could push the pair lower toward 0.8374.
  

AUD/USD

• AUD/USD saw a significant breakdown last week, reaffirming the downtrend from 0.6941.
  
• This week’s outlook remains bearish, with a downside target of 0.5832.
  
• Resistance: 0.6184 — A breakout may shift the trend to neutral.
  
• Upper resistance: 0.6407 — Breaking this would suggest a bullish reversal.
  

USD/CAD

• USD/CAD fell from 1.4414 to a low of 1.4027, then rebounded strongly.
  
• The pair is in a neutral consolidation phase this week.
  
• Resistance: 1.4543 — A breakout signals the end of the downtrend and a shift to bullish.
  
• Support: 1.4027 — A breakdown would indicate accelerated bearish momentum.