Weekly News Pulse: The Dollar Roars and Crypto Retreats Amid Tariff Tensions

Bidja Atkinson

Bidja Atkinson

— 5 min read
Weekly News Pulse: The Dollar Roars and Crypto Retreats Amid Tariff Tensions
President Donald Trump presents a "Reciprocal Tariffs" chart during a press conference, highlighting differences between tariffs charged to the U.S. and those imposed by major trading partners.

Date & Time: Saturday, April 5, 2025, 8:16 PM PDT

Quick Summary: The U.S. dollar (USD) surged to a three-month peak this week, fuelled by strong economic data and Trump’s new tariffs, while Bitcoin slipped below $60,000 USD as markets braced for a trade war escalation.

Introduction:

Welcome to Your Pulse Trading Weekly News Pulse! We’ve tapped trusted sources like Forex Factory, Investing.com, Yahoo Finance, CoinMarketCap, CoinGecko, and Reuters to deliver the latest in forex and crypto for March 31 to April 5, 2025. This week, the U.S. dollar (USD) took centre stage, climbing to its highest level since January on robust U.S. economic figures and the rollout of Trump’s 10% import tariffs, effective April 5. Forex markets reeled, with pairs like EUR/USD and USD/JPY shifting sharply, while crypto stumbled, with Bitcoin dropping 3.8% amid a risk-off wave. These shifts matter—they reveal how trade policies and economic strength are reshaping currency values and digital assets, vital for traders navigating 2025’s choppy waters. (Note: All dollar references are in USD unless stated otherwise, with crypto prices sourced from CoinMarketCap for global consistency.)

Key Developments:

Here’s what shaped forex and crypto this week:

  • Dollar (USD) Strengthens: The Dollar Index (DXY) rose 1.2% to 104.50 USD, its highest since January, after U.S. retail sales jumped 0.8% (above the 0.5% expected) and factory output beat forecasts (Investing.com). Fed rate cut odds for May dipped to 75% from 85% (Forex Factory).
  • Tariff Rollout: On April 2, Trump announced a 10% baseline tariff on all U.S. imports, effective April 5, with reciprocal tariffs of 11%-50% set for April 9 on 185 countries (Reuters). China retaliated with a 34% tariff on U.S. goods, starting April 10, escalating trade war fears (Yahoo Finance).
  • Crypto Stumbles: Bitcoin (BTC) fell 3.8% to $59,200 USD, breaking $60,000 USD, with $150 million USD in long positions liquidated (CoinGecko). Ethereum (ETH) dropped 4.1% to $2,350 USD, and Solana (SOL) slid 5.2% to $135 USD (CoinMarketCap).
  • Forex Shifts: EUR/USD declined 1.5% to 1.0750 USD—its lowest in eight weeks—as the ECB hinted at a dovish pivot (Yahoo Finance). USD/JPY climbed 1.8% to 151.20, testing Japan’s intervention zone.
  • Market Buzz: X chatter flagged tariff uncertainty, with @CryptoAnalystX noting, “Dollar (USD)’s tariff boost is killing crypto momentum.” CoinDesk reported a $5.4 trillion USD equities sell-off, dwarfing crypto’s losses.

Jane Carter of Investing.com commented, “Tariffs are turbocharging the dollar (USD), but crypto’s pullback may be a pause, not a collapse—its hedge story still has legs.”

Market Recap:

A snapshot of this week’s movements (all prices in USD):

  • Forex Pairs:
    • EUR/USD: -1.5% (1.0750 USD)
    • USD/JPY: +1.8% (151.20)
    • GBP/USD: -1.3% (1.2850 USD)
    • USD/CAD: +0.9% (1.3750)
  • Cryptocurrencies:
    • Bitcoin (BTC): -3.8% ($59,200 USD)
    • Ethereum (ETH): -4.1% ($2,350 USD)
    • Binance Coin (BNB): -2.9% ($540 USD)
    • Solana (SOL): -5.2% ($135 USD)
  • Crypto Market Stats: Total market cap fell 3.5% to $2.15 trillion USD, with Bitcoin dominance at 54% and 24-hour trading volume at $68 billion USD (CoinGecko).
  • Commodities Tie-In: Gold dipped 0.9% to $2,650 USD/oz as the dollar (USD) rallied, while oil steadied at $73 USD/barrel despite trade tensions (Yahoo Finance).

The tariff rollout intensified forex volatility, while crypto’s decline reflected broader risk aversion—though less severe than equities’ $5 trillion USD drop.

Charts:

No charts to display, but here’s what they’d reveal:

  • EUR/USD Daily: Picture a steady slide from 1.0910 USD on Monday to 1.0750 USD by Friday. The pair sliced through its 200-day moving average (1.0800 USD) midweek, with red candlesticks piling up as sellers dominated. The RSI sits at 40, nearing oversold territory, with support at 1.0700 USD and resistance at 1.0850 USD in focus.
  • Bitcoin 4-Hour: Envision a peak at $62,000 USD on Tuesday, followed by a sharp drop below $60,000 USD by Thursday. Friday’s $59,200 USD close hugs the 50-day moving average ($58,500 USD), with a bearish channel forming—lower highs and lows. Volume surged during the $60,000 USD break, and RSI at 45 signals fading momentum, with $58,000 USD support and $62,000 USD resistance as key battle lines.

These trends spotlight the dollar (USD)’s dominance in forex and crypto’s tariff-driven struggles.

Expert Insights:

Mark Reynolds of Forex Factory noted, “The dollar (USD)’s riding high on data and tariffs—next week’s CPI could lock in this trend or flip it.” David Lawant of FalconX told CoinMarketCap, “Bitcoin’s holding up better than stocks, hinting it’s a trade-war hedge in the making.” Geoffrey Kendrick of Standard Chartered added to CoinDesk, “Tariffs could push Bitcoin’s narrative as a U.S. isolation hedge.”

Looking Ahead:

The coming week promises volatility as tariffs and data collide:

  • Upcoming Scheduled Events:
    • April 8: Eurozone PMI—soft numbers could sink EUR/USD further.
    • April 9: Trump’s reciprocal tariffs (11%-50%) hit—retaliation risks escalate.
    • April 10: U.S. CPI—expected at 2.5% YoY; a hot print could lift DXY past 105 USD, amplifying tariff inflation fears.
    • April 11: ECB Rate Decision—25bp cut anticipated; dovish comments may weaken the euro.
  • Key Technical Levels to Watch:
    • EUR/USD: Support at 1.0700 USD, resistance at 1.0850 USD.
    • USD/JPY: Resistance at 152.00, support at 149.50.
    • Bitcoin: Support at $58,000 USD, resistance at $62,000 USD.
  • Possible Market Scenarios:
    • Bullish: Weaker U.S. data or tariff relief softens the dollar (USD), boosting forex pairs and crypto.
    • Bearish: Strong CPI and tariff escalation drive DXY to 106 USD, pushing EUR/USD to 1.06 USD and Bitcoin below $55,000 USD.
    • Sideways: Uncertainty keeps markets choppy but range-bound.
  • Risks and Catalysts: Trade war escalation (China’s 34% levy, EU counter-threats), Fed hawkishness, or a crypto shock (e.g., exchange outage) could spike moves. Tariffs are the wild card—China’s response and global retaliation could hammer forex, while crypto’s fate ties to risk sentiment.
  • Market Sentiment Hints: Forex is risk-off, with dollar (USD) bulls in charge. Crypto’s cautious—traders eye dips as buys, but fear deeper losses.

Quick Definitions:

  • DXY (Dollar Index): Tracks the U.S. dollar (USD)’s value against six major currencies.
  • Reciprocal Tariffs: Higher duties targeting countries based on their trade policies.
  • Liquidations: Forced closure of borrowed trades when prices move against them.

Conclusion:

This week, the U.S. dollar (USD) flexed its muscle, powered by strong data and Trump’s tariff rollout—10% now live, with reciprocal levies looming April 9—while forex pairs buckled and crypto hit a wall. Bitcoin’s drop to $59,200 USD and a $2.15 trillion USD market cap reflect risk-off vibes, though crypto’s milder slide versus equities’ $5 trillion USD loss hints at resilience. China’s 34% tariff counterpunch, set for April 10, signals a trade war heating up. Next week’s CPI and ECB moves will set the tone—stay sharp as tariffs and data dictate the pace. Check back next week for more from Your Pulse Trading Weekly News Pulse as we track 2025’s wild ride.

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