Author: Elven Financial

The week of April 6–10, 2026 was defined by a sharp reassertion of USD strength following the White House’s confirmation of broad-based tariff escalation, driving the DXY materially higher across the board. EUR/USD opened the week at 1.1558 and extended losses as the ECB signalled it remains on track to cut rates toward 2.00%, while the FOMC held the federal funds rate at 3.75–4.00% with no near-term easing signal. USD/JPY pushed deeper into intervention-watch territory above 150, with the yen pressured by a widening US–Japan rate differential and rising energy import costs. AUD/USD found partial support from resilient Chinese trade data but could not withstand the broad dollar bid, finishing the week modestly lower.

The week’s dominant theme was safe-haven dollar demand driven by Middle East geopolitical escalation and surging energy prices. USD/JPY’s breach of 160.00 represents a critical inflection point – BoJ intervention could trigger violent reversal effects across G10. Central bank policy divergence between BoE and ECB provides the most reliable structural trade setup for the coming weeks.

The U.S. dollar showed broad strength during the week of March 23-27, 2026, driven by Middle East energy concerns and safe-haven flows. GBP/USD declined -2.01% to 1.34, while USD/JPY rallied +1.39% to 158. EUR/USD remained under pressure as European energy vulnerability weighed on sentiment, and AUD/USD edged up +0.38% to 0.71 despite dollar firmness.