On April 21, 2025, the US dollar index (DXY) continued its downward trend, hitting a intraday low of 98.164, a 1.03% drop from the previous trading day’s closing price, setting a three-year low since April 2022. As a result, the euro/dollar exchange rate soared to 1.1485, the pound/dollar broke through 1.3350, and the yen/dollar strengthened to 141.80 due to expectations of Bank of Japan intervention. Behind this exchange rate storm is the collective launch of a “super long defense war” by multinational American companies – companies such as Apple and Tesla have extended their currency hedging cycle from the usual 3-6 months to 2-5 years, setting a rare record in nearly a decade. The spot gold price has broken through 3390 US dollars per ounce, up 1.68% from the previous day, setting a new historical high. Market concerns about the “US dollar credit crisis” have further intensified.

The game of control over the Federal Reserve between the Democratic Party and the White House has heated up: Senate Democratic leader Chuck Schumer publicly warned on April 18 that if Trump forcibly fired Powell, the US stock market may repeat the mistakes of Black Monday in 1987. At the same time, the gold market remained unscathed in the policy storm, with spot gold hitting a historic high of $3357.74 per ounce and then falling back to around $3327 per ounce, while Wall Street hedge funds suffered epic losses – according to Bloomberg statistics, 90% of top tier funds lost over 15% within the year, Citadel、 The weekly drawdown of giants such as Renaissance Technology reached 8% -12%. The core of this “political market” dual storm is the economic “stagflation trap” triggered by Trump’s tariff policy and the approaching critical point of the Federal Reserve’s policy shift.