As concerns about the growth prospects of the US economy intensify in the market, the US dollar experienced a comprehensive sell-off on the last trading day of this week, and safe haven funds quickly shifted to assets such as gold, Swiss francs, Japanese yen, and euros.

According to the latest data, the USD/CHF fell by 1.2% at one point, touching 0.81405 Swiss francs, marking the first time since January 2015 and continuing the nearly 4% decline from the previous trading day; The US dollar fell 1.1% against the Japanese yen to 142.88, reaching its lowest level since September 30, 2023; The US dollar fell to a five month low of 1.3910 against the Canadian dollar.

The euro rose sharply by 1.7%, reaching a new high of 1.13855 since February 2022. The US Dollar Index (DXY) fell 1.2%, breaking below the key 100 level for the first time since July 2023.

The market is experiencing a clear 'sell off' sentiment, with traditional safe haven assets receiving a comprehensive influx of funds, "said Chris Weston, research director at Pepperstone.

Gold has shown particularly strong performance, with spot gold rising 1.4% on Friday to $3219.23 per ounce, setting a new historical record. Analysts generally believe that the escalating US China trade tensions and uncertainty about US policies have greatly enhanced the attractiveness of gold as an inflation and risk hedging tool.

The day before, President Trump suddenly announced a 90 day suspension of tariffs on multiple trading partners, but raised import tariffs on Asian countries to 145%, reinforcing market concerns about a slowdown in global economic growth. Although the White House claimed that suspending tariffs was an established negotiation strategy, Trump later admitted that recent market volatility had driven policy adjustments.

Brent Donnelly, President of Spectra Markets, said, "Although Trump has made concessions on yields, it does not mean that 10-year US Treasury bonds will not hit 4.50% again, and the US dollar may continue to face selling

In line with the selling pressure on the US dollar, the yield of US 10-year treasury bond bonds rose nearly 10 basis points in the morning to 4.488%, which is expected to record the largest weekly increase since 2001. At the same time, market speculation about the future path of interest rate cuts by the Federal Reserve has also been volatile.

Due to Trump's wavering policies, multiple global leaders and corporate executives have stated that the current policy uncertainty is posing significant challenges to corporate planning and capital expenditures.

Brent Donnelly further added, "We are entering a market structure of 'pure selling of the US dollar', and the support of interest rate differentials for the US dollar is gradually weakening. This is the first time I have seen this situation in my career

Editor's viewpoint:

The US dollar is gradually losing its market role as a safe haven, which has been extremely rare in past market cycles. Trump's unpredictable policies have led global markets to no longer view the US dollar as a stable anchor asset, but instead have boosted the attractiveness of gold and the Swiss franc.

If inflation and geopolitical risks continue to escalate, it cannot be ruled out that gold will continue to break new highs, and the weakness of the US dollar may become the main theme of the market in the second half of 2025.