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Here are the important upcoming news events that could affect your trading.
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๐Ÿ“Š USDJPY tries to renew highs amid U.S.โ€“China trade talks

USDJPY hit a four-week high of 146.189 but failed to hold its gains, declining by 0.25% on Monday.

๐Ÿ‘‰Possible effects for traders

Market sentiment improved after officials from the U.S. and China highlighted tangible progress in negotiations. U.S. representatives emphasised steps toward narrowing the trade deficit, while Chinese authorities referred to the discussions as reached an 'important consensus'. Despite this progress, U.S. Commerce Secretary Howard Lutnick noted that existing 10% tariffs on other nations would likely remain. Attention is now shifting to U.S.โ€“Japan trade discussions, with Tokyo targeting a finalised agreement by June.

Domestically, Japan reported a current account surplus of ยฅ3.45 trillion in March, moderating slightly from a record ยฅ4.06 trillion surplus in February. While the strong external balance underscores the country's resilient export performance, this has done little to support the Japanese yen (JPY) amid the prevailing risk-on sentiment. Investors appear more focused on global trade developments and interest rate differentials, which continue to drive the currency lower.

USDJPY moved sideways during the Asian and early European hours. Two key economic releases this week could impact the pair. First is the U.S. Inflation Rate report, due at 3:30 p.m. UTC tomorrow. Stronger-than-expected figures may trigger a correction in USDJPY, while weaker data could support the pair. Second is the Japan's Gross Domestic Product report, which will come out on Thursday at 11:50 p.m. UTC. A higher-than-expected number could push USDJPY to new highs, while softer data could trigger a downward correction. Key levels to watch for USDJPY are support at 145.000 and resistance at 146.200.

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๐Ÿ“Š Euro hits new lows

On Friday, the euro (EUR) rose by 0.19% on prospects of a trade deal.

๐Ÿ‘‰Possible effects for traders

The U.S. dollar (USD) faced sustained downward pressure in recent weeks due to U.S. President Donald Trump's unpredictable trade policies. However, the dollar stabilised last week after the Federal Reserve (Fed) indicated it doesn't plan further rate cuts in the near term. Investors are now closely watching the upcoming April's consumer price data for signs of tariff-driven inflation. Meanwhile, flat retail sales are anticipated in April, following a surge in March, hinting potential signals of trade-related headwinds in the broader economy.

'What we seem to have here, then, is a broad framework under which the two nations can conduct further talks, with the aim of reaching a broader trade agreement,' said Michael Brown, a senior research strategist at Pepperstone. 'Not the worst-case outcome that was possible from this weekend's talks, far from it, but not a concrete deal either', he added. 'Does this progress allow for any tariffs to be paused, reduced, or rolled back, and if so, for how long?'

EURUSD declined slightly in the Asian and early European trading sessions. Today, the formal macroeconomic calendar is rather light, so volatility will likely remain low. Technically, EURUSD will probably remain under bearish pressure as long as the price remains below the key 1.13000 level.

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๐Ÿ“Š Gold slides on U.S.โ€“China trade talks

Gold (XAU) declined by over 3% on Monday, falling below $3,280 towards a one-week low.

๐Ÿ‘‰Possible effects for traders

Market appetite for safe-haven assets weakened amid renewed optimism surrounding U.S.โ€“China trade relations. Over the weekend, officials from both sides concluded preliminary discussions and gave positive signals. Beijing announced its intention to begin formal negotiations, while the U.S. emphasised tangible progress towards a potential trade agreement. U.S. Treasury Secretary Scott Bessent confirmed that details on negotiations would be disclosed in a briefing later on Monday. The developments eased investor concerns and exerted downward pressure on gold.

On the geopolitical front, the Indiaโ€“Pakistan ceasefire agreement held steady overnight into Sunday, despite early accusations of violations by both sides. The lack of immediate escalation further reduced demand for safe-haven assets like gold, reinforcing the broader sell-off in precious metals at the beginning of the trading week.

Today, the economic calendar is relatively uneventful, but traders should monitor any developments in U.S. trade tariffs. 'There's strong optimism across the market of progress in U.S.โ€“China trade talks in particular and more broadly more trade deals', said Matthew Weller, head of market research at StoneX. Key levels to watch for XAUUSD are support at $3,195 and resistance at $3,360.

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๐Ÿ“ˆ What moved the market last week?
Our latest market movers round-up reveals the key shifts:

๐Ÿš€ Top Performers
๐Ÿ”น XAUUSD (Gold) +2.60% โ€” Despite losing some momentum late in the week, gold surged over 2.5% due to strong safe-haven demand and structural buying by Chinaโ€™s central bank (PBoC). Hopes for a U.S.โ€“China trade deal briefly tempered the rally. 
๐Ÿ”น USDCAD +0.85% โ€” The Canadian dollar held firm amid steady commodity prices. 
๐Ÿ”น USDCHF +0.53% โ€” The Swiss franc edged lower as risk sentiment improved. 

๐Ÿ”ด Biggest Laggards

๐Ÿ”น EURUSD โˆ’0.42% โ€” The euro dipped as the U.S. dollar showed mixed performance. 
๐Ÿ”น AUDUSD โˆ’0.48% โ€” The Aussie dollar softened despite broader market optimism. 
๐Ÿ”น USDMXN โˆ’0.68% โ€” The Mexican peso gained as risk appetite improved. 

๐Ÿ’ก Key Takeaways
- Gold (XAU) led the pack, while the rand (ZAR) lagged behind. 
- The U.S. dollar was mixed: it strengthened against some majors (CAD, CHF, JPY) but weakened against EM currencies (MXN, ZAR) and the euro. 
- Risk appetite improved late in the week, pressuring safe havens like gold but boosting higher-yielding assets.

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๐Ÿ“Š British pound falls against U.S. dollar

The British pound (GBP) decreased by 0.96% on Monday as the U.S. dollar (USD) strengthened due to the U.S.โ€“China trade agreement.

๐Ÿ‘‰Possible effects for traders

Earlier today, U.K. unemployment statistics were released. The increase in the U.K. unemployment rate from 4.4% towards 4.5% in March indicates a slight weakening in the labour market. A rising jobless rate may signal an economic slowdown, making the Bank of England more cautious about further rate hikes, as tighter monetary policy puts additional pressure on the economy. If this trend continues and inflation remains subdued, the central bank may even consider cutting rates to support employment and stimulate growth. This could increase the likelihood of pausing or reducing interest rates rather than further tightening.

GBPUSD rose during Asian and early European trading hours, trying to recover some of yesterday's losses. Today, the U.S. Inflation Rate report is due at 12:30 p.m. UTC. Higher-than-expected numbers could support GBPUSD. Conversely, lower-than-expected figures may deepen the downtrend in the pair. "Key technical levels to watch are resistance at 1.31400 and support at 1.30400.

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๐Ÿ“Š Euro hits new lows

The euro (EUR) lost 1.46% against the U.S. dollar (USD), closing at a five-week low on Monday after the U.S. and China reached a deal regarding trade tariffs.

๐Ÿ‘‰Possible effects for traders

On Monday, Washington and Beijing announced a 90-day agreement to significantly reduce the hefty trade tariffs they had imposed on each other. The deal triggered a relief rally that lifted global stock markets and strengthened the U.S. dollar.

'It's way better than the market was expecting', said Rodrigo Catril, senior FX strategist at National Australia Bank. 'It's just an indication of, for one, the U.S. administration is quite sensitive to the impact (tariffs are) having on the economy, and some would say there's been a serious walk back in terms of what they've done'.

EURUSD fell during the Asian and early European trading sessions. Traders should stay alert for new developments in global trade tariffs and peace negotiations between Russia and Ukraine. In addition, the German ZEW Economic Sentiment report at 9:00 a.m. UTC today may add volatility to the market. Higher-than-expected figures could finally push EURUSD above the critical 1.11500 level. Conversely, lower-than-expected numbers may trigger a pullback towards 1.10500.

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๐Ÿ“Š Gold collapses amid trade tariff easing

Gold (XAU) declined by over 2.69% on Monday. 'Gold, conversely, faced significant headwinds, retreating from earlier highs above $3,400 down to nearly $3,200 as easing geopolitical fears and stronger economic optimism diminished safe-haven appeal', Saxo Bank analysts wrote.

๐Ÿ‘‰Possible effects for traders

The decline was driven by improved risk sentiment and reduced demand for safe-haven assets after a breakthrough in U.S.โ€“China trade negotiations. The countries agreed to lower tariffs: U.S. rates on Chinese imports dropped from 145% towards 30%, and China's levies on U.S. goods fell from 125% towards 10% for the next 90 days.

'The progress made in trade talks between the U.S. and China over the weekend significantly dials back trade tensions, stoking risk appetite, and sapping gold's haven bid', Peter Grant, vice president and senior metals strategist at Zaner Metals, told MarketWatch.

XAUUSD rose slightly during the Asian and early European trading sessions. Today, traders should focus on the U.S. Inflation Rate report at 12:30 p.m. UTC. The data may affect interest rate expectations and investor sentiment, increasing volatility in the Forex market, including XAUUSD. Key levels to watch are support at $3,195 and resistance at $3,265.

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HK50 extended its rally following a surge above the 22500 threshold. The price remains in an uptrend, with higher swings within the ascending channel and golden-cross of the EMAs suggesting the potential for further upside.

If HK50 sustains its bullish momentum, the index could approach the channel's upper bound and 100% Fibonacci Extension at 24800.

Conversely, if HK50 retraces, the index could retest the support at 22500, which coincides with EMA21.