Trade War Risks Ease: USD Weakens on De-escalation Expectations

The US dollar has weakened across major pairs as markets price in reduced trade war risks following the April 9 tariff pause. This de-escalation has shifted sentiment from recession fears to growth optimism, with soft economic data showing improvement. The dollar index dropped 0.2% as traders anticipate continued global growth recovery and persistent disinflation trends. Risk-sensitive currencies like AUD and NZD gained 0.3-0.4% against the greenback. Market participants are monitoring upcoming PMI releases and central bank communications for confirmation of the growth rebound. Technical indicators suggest the DXY faces resistance at 104.50, with support established at 103.80. The improved risk appetite could continue pressuring the dollar if global growth data maintains its positive trajectory, particularly benefiting commodity currencies and emerging market forex pairs.