Markets still have to deal with trade policy uncertainty

An unfavorable ruling by the U.S. Court of International Trade on the Trump administration's recent tariffs is sending ripples through global financial markets, with the court finding that a 1977 law cited by the government does not apply to the current tariffs. Despite the government's appeal, the ruling has already had a significant impact on the market, with traders reassessing the impact of trade policy uncertainty on various assets.

Divergent performance in foreign exchange markets
The foreign exchange market has shown a complex pattern of differentiation. The U.S. dollar index initially gapped up to around 100.50 after the announcement of the ruling, but then gradually retreated. The performance of major currencies against the U.S. dollar has diverged significantly, reflecting the different vulnerabilities of different economies to changes in trade policy.
The euro fell from a high of 1.1420 on Monday to 1.1210 in early trading today (Thursday, May 29), a nine-day low, before recovering during the European trading session.
The yen's performance is particularly noteworthy, with the U.S. dollar forming a potential key reversal pattern against the yen on Tuesday, breaking out of Monday's range and closing above its high.
The pound retreated from a three-year high near 1.3600 on Monday, falling to 1.3450 yesterday and further down to around 1.3415 today before recovering in early European trading.

Macroeconomic Data Outlook
The market will pay close attention to a series of important economic data. It is worth noting that some economic indicators show signs of weakness: US fuel demand (gasoline, distillate and aviation fuel) is unusually weaker than seasonal expectations. Its May non-farm payrolls data will be released next week, with an initial forecast of 130,000, down from 177,000 in April.
Analysts believe that although the court ruling has brought short-term market optimism, trade policy uncertainty will continue to affect the market. Traders are paying attention to the progress of the US government's appeal and the policy responses of central banks to signs of economic slowdown. GOLD XAUUSD XAUUSD USOIL GOLD XAUUSD XAUUSD XAUUSD