Trump Softens Tone, Yet Reiterates the Need for Rate Cuts

Market Overview

On Tuesday, the U.S. dollar rebounded sharply amid optimism surrounding U.S. tariff negotiations, with the Dollar Index climbing nearly 100 points from its intraday low to close up 0.634% at 98.98. U.S. Treasury yields were mixed, while spot gold experienced a dramatic reversal. After briefly breaching the historic $3,500 level, gold plunged more than $130 to settle at $3,382.17 per ounce, down 1.24%. Spot silver mirrored the same inverted-V pattern, retreating after another failed attempt to break through the $33 mark and closing 0.59% lower at $32.48 per ounce.

Hot Topics to Watch

● Trump Says He Wont Fire Powell, But Insists “Now Is the Perfect Time for Rate Cuts”

In an Oval Office interview, when asked whether he would confirm he‘s not seeking to remove Fed Chair Jerome Powell, Trump replied, “Absolutely not. Never have.” However, he reiterated his criticism of Powell, calling for more aggressive rate cuts and emphasizing that now is the ideal moment to act. Analysts view this as an attempt to calm market nerves and a clear pivot in Trump’s stance.

● U.S.-Japan Finance Chiefs to Meet Amid Yen Surge

The upcoming meeting between U.S. and Japanese finance ministers comes at a delicate time, as Trump's tariff stance coincides with a sharp appreciation in the yen. On Tuesday, the yen strengthened to 139.90 against the dollar—the highest level since last September. Analysts warn that breaching this threshold could trigger further yen buying and accelerate dollar outflows.

Key Events to Watch (GMT+8)

• 21:45 S&P Global Manufacturing PMI (Preliminary, April – U.S.)

• 21:45 S&P Global Services PMI (Preliminary, April – U.S.)

• 22:30 EIA Crude Oil Inventories (week ending April 18 – U.S.)

• Overnight 02:00 Federal Reserve Beige Book Release