Asia-Pacific FX Shakeup: After Tariff Bombshell

Markets in Asia-Pacific kicked off the week with big moves. The US dollar took a hit, and crypto followed suit. Bitcoin dropped below $65,000. This came after a huge US Supreme Court decision on Friday. It struck down President Trump’s tariffs based on the IEEPA law. Trump fired back with a new flat 15% tariff on global goods, up from 10%. Now, questions swirl about refunds and more court fights. This news sparked a trend that traders can’t ignore.

The Supreme Court Ruling That Changed Everything

The big story started Friday. The US Supreme Court ruled against Trump’s use of IEEPA for tariffs. This law lets the president act fast in emergencies. But the court said it doesn’t cover broad trade tariffs. Markets loved the news at first. Lower tariffs could ease costs and fight inflation.

Trump didn’t wait long. He announced a simple 15% tariff on all imports. No more targeted hits on China or others. But refunds for past tariffs? Trump said it’s unclear. Legal battles could drag on for years. This adds fog to US trade policy. Investors hate fog—it means risk.

• Key impact: Less tariff pressure on Europe and Japan.
• Risk: New flat tariff hits everyone equally.
• Refund mess: Companies paid billions—will they get money back?

USD Sell-Off Hits FX Pairs Hard

The US dollar sold off across the board. Thin trading in Asia made moves bigger. Japan and China markets were closed—Japan for a holiday, China after Lunar New Year.

EUR/USD jumped back above 1.18. Germany’s Chancellor Merz said the ruling cuts tariff pain for his country. France’s Trade Minister Forissier noted EU talks and retaliation options. Europe cheered.

USD/JPY plunged a full point to near 154.00. Japan’s LDP tax chief Onodera called it a “real mess.” Tokyo worries about trade swings hurting exports.

Why the dollar drop? Tariff cuts signal looser policy. That weakens USD as safe-haven demand fades.

Crypto Takes a Brutal Hit: Bitcoin Below $65K

Crypto markets bled red. Bitcoin fell sharp, back under $65,000. Talk of $200 million in liquidations fueled the slide. When leveraged traders get wiped, it snowballs lower.

Bitcoin ETFs saw $3.8 billion outflows in just five weeks. Is this a buy-the-dip moment? Or the start of crypto winter? Regulation fears add pressure. Trump’s tariff flip-flop screams uncertainty—crypto hates that.

Broader crypto plunged 5% on average. Risk assets like BTC act like stocks in choppy times. Trade wars = risk-off mode. But smart money sees opportunity. Lower USD could boost crypto long-term as investors flee fiat.

Crypto insight: Liquidations amplify drops by 2-3x. Watch for $60K support—break it, and pain deepens.

Gold Shines, Oil Dips Amid Mixed Signals

Gold hit a three-week high. Trade chaos boosts safe-haven buys. Investors flock to it when stocks and crypto wobble.

Oil told a different story. Futures eased on Globex reopen. Tariff fears cut demand outlook. But US-Iran talks resume Thursday. An Iranian official flagged an interim deal. US firms could join oil projects as contractors. This tempers supply worries.

Goldman Sachs upped 2026 oil forecasts: $60 Brent, $56 WTI. Reason? Low OECD stocks. But they warn of $5-8 downside from tariffs.

Iran tensions could spike oil 50%+. Traders might underestimate this risk.

Broader Market Ripples and Wild Cards

Tariff news sparks debt risks and dollar slide. Lower levies ease inflation but cloud fiscal plans.

Other buzz:

• 3D printed motors at 50 cents could cut EV costs. Big for Tesla rivals and crypto mining rigs.
• Australia’s salt deposit as ‘super battery’ for 20 million homes. Green energy play ties to blockchain for tracking power.
• Akamai stock down 14% on weak forecast—tech feels the heat too.

What’s Next for Markets?

Tuesday brings Japan back and China reopening. Full liquidity could calm or worsen swings.

Crypto watch:

1. Bitcoin holds $65K? Bounce to $70K possible.
2. ETF flows reverse? Bull signal.
3. Tariff refunds win? Risk-on rally.

USD could test lower if EU retaliates less. Gold eyes $2,700. Oil hinges on Iran talks.

This wrap shows trade policy rules markets. Stay nimble—volatility ahead. What do you think: dip buy BTC now or wait?

Follow for more crypto and FX updates. Markets never sleep.

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