After multiple verbal attacks on Federal Reserve Chairman Powell during the Easter holiday, Trump told the media on Tuesday night, "I have no intention of dismissing him (Powell)." This statement eased concerns in the market about the coherence of the Fed's policies and boosted the performance of the US dollar during the Asian trading session.

I hope he can be more proactive in cutting interest rates, "Trump told reporters in the Oval Office of the White House.

As a result, the US dollar index rose 0.23% to 99.20, the USD/JPY rose 0.24% to 141.91, and the Swiss franc rose 0.48% to 0.8226, all breaking away from previous years' lows.

Trade tensions may show signs of easing, and bullish sentiment towards the US dollar is heating up

Both Trump and Treasury Secretary Scott Besant have hinted that a trade agreement to reduce tariffs may be reached in the global trade situation. Trump stated that the agreement with Asian powers will significantly reduce tariffs, but will not be completely cancelled. This statement has improved market confidence in the global economy and provided support for the US dollar.

Trump's sudden turn is undoubtedly a relief for the market, and investors now expect Powell not to be replaced by a more dovish candidate. "- Matt Simpson, Senior Analyst at City Index

Pepperstone research director Chris Weston pointed out, "Trump's statement about Powell helps alleviate market concerns about policy mistakes. The market has become increasingly accustomed to the president's' shoot first, then correct 'communication style

On a technical level, the US dollar index is still in a downward trend. The short-term rebound is driven by emotions, with market risk appetite rebounding. On the other hand, it is an oversold correction, mainly waiting for stress testing to prevent a secondary rebound.

Editor's viewpoint:

The sharp turn in Trump's attitude once again demonstrates his policy uncertainty, but it provides support for short-term market sentiment. The rebound of the US dollar index is more based on the release of hedging and the correction of interest rate spread expectations, rather than fundamental improvements. Continue to monitor changes in the global trade situation.