The dollar retreated in anticipation of US inflation data today

The US dollar fell on Thursday as investors absorbed President Trump's announcement of a temporary three-month suspension of higher targeted tariffs for most countries, which may provide an opportunity to negotiate a positive step amid a gloomy economic outlook.

But this does not apply to China, where Trump raised tariffs on Chinese imports to 125% in response to retaliatory measures from Beijing, which raised tariffs on the United States to 84%.

The US inflation data for March is scheduled to be released at 2:30 pm Egypt time.

On the other hand, how did the markets react to this confusion in this way:

- Gold rose again near its record peak.

- Asian stock markets also rose.

- US Treasuries also rose during Asian trading hours, reversing the trend of US bond yields and putting the dollar under widespread pressure as a result of a looming crisis of confidence in the US currency as a result of Trump's fluctuations on trade policy.

- The Chinese yuan briefly fell to its lowest level since the global financial crisis in 2008, but returned to a slight rise again.

- The Australian dollar and also the New Zealand dollar fell slightly, due to their impact on China's fluctuations as a result of trade relations between them.

US Treasury Secretary Scott Besant stated on Wednesday that the comprehensive rollback of tariffs was the basic scheme for bringing countries to the negotiating table, and Trump later noted that the panic that has gripped the markets since his April 2 announcements has already influenced his thinking.

It seems that Trump backed down from his position when faced with a possible recession, a political backlash, a strongly falling stock market, and early signs of a financial crisis, but now there has been a decline in investor confidence in the US government, and even if Trump concludes deals with trading partners, there is damage to the US markets and economy that we expect will take time to recover.