Liberation Day in the United States marked a significant turning point in the nation’s trade policies, introducing an extremely protectionist and inward-looking tariff regime directed at nearly all U.S. trading partners. This announcement has reverberated across global financial markets, impacting currency exchange rates and global investor confidence. Traders and investors scrambled to respond to the real-world implications of those tariffs. GMT—dragged down by the Greenback, the informal term for the U.S. dollar—which ended the week on a weak note, falling to heights not reached since September 2024.
The negative effect of the new tariff policies was seen in all currency pairs. In particular, GBP/USD was all over the place but closed almost flat in the low-1.2900s after trading briefly above the 1.3200 level. EUR/USD flourished momentum for a second straight week. EUR/USD slipped below the key 1.1100 level on news Friday that the WH was increasing tariffs.
The Impact of Liberation Day on Currency Markets
The announcement of the new tariffs came at the same time as a rocky week for the U.S. dollar. After Donald Trump announced his own version of “Liberation Day,” the new currency took its biggest hits in value. The U.S. Dollar Index (DXY) had a hard go of it this week. It closed on a defensive note and tested its make-or-break 200-week simple moving average (SMA), located in the mid-102.00s. That sparked a clear drop, especially after U.S. yields fell sharply. This change put even greater upward pressure on the dollar.
In this environment, USD/JPY retraced lower after three consecutive weeks of gains. Indeed, it slumped to the 144.50 area for the first time since late September. Investors and investors alike responded to the introduction of tariffs by reassessing their positions, resulting in major market movements across almost all major currency pairs.
In opposite fashion, GBP/USD remained resilient even while being surrounded by stormy seas. After hitting a new multi-decade nadir above 1.3200, it plummeted to the low-1.2900’s. Traders are now looking to get clearer signals on some economic indicators and more importantly the new global trade dynamic.
Maker’s Market Performance Amid Tariff Uncertainty
For MakerDAO, too, 2023 has witnessed a remarkable sea change in its market fortunes. Addresses with 100k-1m MKR now represent over 24.27% of Maker’s total supply. This surge is indicative of a growing rise in whale activity entering the cryptocurrency space. Such movements are important as they tend to indicate strong investor confidence or strategic positioning in changing market landscapes.
Despite ongoing fluctuations, Maker has managed to maintain support above $1,250, even after a whale purchased $1.21 million worth of MKR. Analysts observe that Maker is currently battling a bear flag pattern, raising questions about its immediate trajectory as bulls prepare for what could be an epic weekend move in response to broader market trends.
The mood surrounding Maker illustrates the ways in which crypto markets are intertwined with tradfi. This relationship persists even more clearly during crisis periods, as when last week’s tariff announcements broke through the news cycle.
Upcoming Economic Indicators to Watch
Investors on the ground are increasingly adjusting to changes in policy and market dynamics. There are a few important economic reports the market will be looking at this week, and they have the potential to move the market sharply. On April 8, Westpac’s measure of Consumer Confidence will be published. Along with that, NAB Business Confidence survey will give us an even better insight into consumer sentiment and business outlooks here in Australia.
On April 9 th , look for building permits and private residential starts. These are key metrics for evaluating the underlying strength of the housing market. On April 10, consumer inflation expectations will be out—another important piece of data that could shape decisions around monetary policy.
Maybe the most key of those, on April 11, will be Germany’s release of the inflation rate, as well as current account figures. Beyond their borders, Europe have been key for international spectacular and economic stability. These figures will be watched closely by investors to determine how they’ll impact European and U.S. markets alike.