EUR/USD
EUR/USD trimmed into the low end on Thursday, shedding a little over two-thirds of one percent from the day’s opening bids after US Dollar (USD) bids caught a broad-market boost following the tentative announcement of a pending trade deal between the United States (US) and the United Kingdom (UK). Europe still appears to be on the outs with the Trump administration, with White House officials continuing to warn the pan-EU continent to “not retaliate” against US import taxes.
GBP/USD
GBP/USD kicked off Thursday with an early spat of gains, fueled by the Bank of England (BoE) delivering the market a widely-anticipated quarter point rate cut. However, bullish momentum behind the Pound Sterling evaporated quickly as markets pivoted toward trade headlines from the United States (US). Investors are hoping for quick progress on the US making trade deals that will allow it to climb down from its own self-imposed tariff stance.
USD/JPY
USD/JPY stays under pressure below the 146.00 mark in Asian trading on Friday, weighed down by the delatyed reaction to the mixed Japanese macro data. Japan’s household spending beats expectations and boosts the case for further BoJ hikes. However, Japan’s real wages fell for the third straight month in March.
AUD/USD
AUD/USD keeps its range at around the 0.6400 mark early Friday after China’s April Trade Balance data failed to impress The US Dollar stands firm near a one-month top on the back of the US-UK trade deal optimism. The Aussie trades with caution ahead of Saturday’s US-China trade talks.
NZD/USD
The NZD/USD pair continues its downward trajectory for the third consecutive session, hovering near 0.5890 during Friday’s Asian trading hours. The decline follows the release of China’s latest trade data, which pointed to a slowdown in external demand. Given New Zealand’s strong trade links with China, any weakness in the Chinese economy tends to negatively impact the NZD.
USD/CAD
The USD/CAD pair is seen building on this week’s recovery from the year-to-date low, around mid-1.3700s, and gaining positive traction for the third successive day on Friday. The momentum lifts spot prices close to the 1.3940-1.3945 region, or over a three-week high during the Asian session, and is sponsored by a modest US Dollar (USD) strength.
USD/CHF
The USD/CHF pair is trading higher as the US Dollar (USD) gains momentum on mixed economic signals and trade optimism, while the Swiss Franc (CHF) weakens amid broader risk-on sentiment. US President Donald Trump announced a “major trade deal” with the United Kingdom (UK), though initial excitement cooled after reports indicated that a 10% tariff on UK goods would remain in place, limiting the potential economic boost from the agreement.
CRUDE OIL
Oil prices were up slightly on Friday, after rising about 3% in the previous session, as trade tensions between top oil consumers U.S. and China showed signs of easing and Britain announced a “breakthrough” trade deal with the United States.
Gold price attracts some dip-buyers following a modest Asian session slide to the $3,275-3,275 area. The optimism over the US-UK trade deal and the US-China negotiations might cap the precious metal. The Fed’s hawkish pause lifts the USD to a multi-week top and further keeps a lid on the commodity.
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