Markets have adopted a cautious stance to begin the week after President Donald Trump announced late Friday that the U.S. will impose 100% tariffs on Chinese imports. The economic calendar will not feature any high-tier data releases on Monday, allowing the risk mood to remain as the primary market driver.
In a post published on Truth Social late Friday, Trump said that he learned that China has taken an “extraordinarily aggressive position” on trade, telling trading partners that they are going to impose large scale export controls on virtually every product they make.
“Based on the fact that China has taken this unprecedented position, and speaking only for the USA, and not other Nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying,” Trump said in response.
The US dollar came under heavy selling pressure toward the end of the week and Wall Street’s main equity indexes declined sharply.
After losing more than 0.5% and snapping a four-day winning streak on Friday, the DXY Dollar Index clings to modest recovery gains at around 99.00 in the European morning on Monday.
Meanwhile, US stock index futures rose between 1% and 2%. Bond markets in the US remain closed in observance of the Columbus Day holiday on Monday, but both the New York Stock Exchange (NYSE) and Nasdaq will be operational during regular hours.
Following the deep correction seen on Thursday, gold reversed its direction and closed in positive territory on Friday. XAUUSD preserves its bullish momentum to start the new week and trade at a new all-time peak above $4,070 in the European morning.
EURUSD struggled to build on Friday’s gains and held steady at around 1.1600 in the European session.
French President Emmanuel Macron re-appointed Prime Minister Sebastien Lecornu, who is now expected to present the 2026 budget ahead of the Tuesday deadline.
GBPUSD remained under modest bearish pressure and trades slightly below 1.3350 early Monday. On Tuesday, the UK’s Office for National Statistics will publish labour market data for September.
After losing more than 1% on Friday, USDJPY opened with a bullish gap and continued to stretch higher during the European trading hours, up more than 0.7% on the day at 152.30.
(Source: OANDA)
