Forex Today: Risk mood improves to start week, US Dollar remains weak

Here is what you need to know on Monday, April 14:

The market sentiment improves at the beginning of the week as investors assess the latest headlines surrounding the US-China trade conflict. The economic calendar will not feature any high-impact data releases on Monday. Several Federal Reserve policymakers will be delivering speeches during the American trading hours.

US President Donald Trump's administration granted some technology imports, including smartphones, computers, laptops and disc drives, exemptions from the steep reciprocal tariffs imposed on China. These products will reportedly be subject to the 20% existing tariffs on China, which were related to the US fentanyl crisis, and be excluded from the additional 125%. However, US Commerce Secretary Howard Lutnick said in an ABC News interview on Sunday that these products, alongside semiconductors, will face separate new levies within the next two months. Following this development, US stock index futures trade decisively higher in the European morning on Monday. At the time of press, Nasdaq Futures were up 1.7% on the day.

The US Dollar (USD) Index, which tracks the USD's performance against a basket of six major currencies, lost about 3% last week and touched its lowest level since April 2022 near 99.00. Following a technical correction heading into the weekend, the USD Index struggles to hold its ground on Monday and stays in negative territory below 99.30.

During the Asian trading hours, the data from China showed that China's trade surplus narrowed to $102.64 billion in March from $170.51 billion in February. On a yearly basis, Exports grew by 13.5%, while Imports declined by 4.3% in March. After gaining more than 4% in the pervious week, AUD/USD continues to push higher and was last seen rising about 0.65% on the day at 0.6330.

GBP/USD benefits from the persistent selling pressure surrounding the USD and trades above 1.3150 in the European morning. The UK's Office for National Statistics will publish February employment data on Tuesday.

After losing more than 2% last week, USD/JPY stays under bearish pressure and trades near 142.50 to start the European session. Earlier in the day, the data from Japan showed that Industrial Production expanded by 2.3% on a monthly basis in February, missing the market expectation for an increase of 2.5%.

Gold gained more than 6% in the previous week and touched a new all-time high at $3,245 on Friday. Following a bearish opening to the new week, Gold reversed its traction and test the record-high before going into a consolidation phase. At the time of press, XAU/USD was trading marginally lower on the day near $3,230.

EUR/USD holds its ground and trades in positive territory near 1.1400 in the European morning after rising more than 3.5% last week. Eurostat will publish February Industrial Production data on Tuesday.