German CDU party leader Merz announced, “We have reached a tentative agreement with the Greens on a fiscal package. This means that Germany has confirmed its course of fiscal expansion and a significant increase in defense spending. With the birth of the Trump administration, the U.S. is certain to leave Europe and Europe will have to develop its own defense strategy, but the confirmation of Germany’s course, which has the most fiscal spending capacity, helped the Eurodollar recover to the 1.09 level.

The announcement of a 200% tariff on EU wine also caused the Eurodollar, which had been surging, to soften somewhat. Theory dictates that the currency of the country that imposes tariffs will rise, and there may be places where the euro will fall as a result. But that is likely to be a buying opportunity. In the near term, it seems better not to move too quickly and see what the other side comes up with, as the tariffs are likely to confuse the market.

In Japan, BOJ Governor Ueda made dovish comments in the House of Councillors, saying that “underlying prices are a little below 2%,” while hawkish elements mixed in, saying that “the practice of wages and prices being difficult to increase due to the increasing labor shortage has changed” and “a good picture is expected regarding real wages and consumption,” with the dollar softening to around 147.58 yen. The dollar softened to around 147.58 yen.
RENGO (Japanese Trade Union Confederation) announced that the first tally for the spring labor struggle was 5.46%, higher than last year’s 5.28%. This is a good start toward a virtuous cycle of wages and prices, but some traders were disappointed and the dollar touched the 149-yen level as the recently announced level of demands was over 6%.
However, the dollar’s weakening trend is not expected to change significantly, and the trend will continue to be a large range but gradual appreciation of the yen?

Gold finally hit the $3,000 mark. Despite profit-taking, it is likely to continue to be the preferred destination for funds as a refuge due to the uncertainty under the Trump administration.