The Canadian Dollar (CAD) rose on Friday, jumping two-thirds of a percent against the US Dollar as global market flows continue to reverse out of the safe haven Greenback.
The Dow Jones Industrial Average (DJIA) caught a late bid on Friday, rising back into the 40,000 major price handle after an early dip on rising tariffs between the US and China.
Federal Reserve (Fed) Bank of Boston President Susan Collins noted that the Fed has multiple monetary policy tools available and at its disposal should market conditions require them, but the Fed policymaker used the opportunity to push against the idea of the Fed using rate cuts first.
White House press secretary Karoline Leavitt reported that US President Donald Trump was optimistic about securing a trade deal with China, despite the escalating trade war between the two economic giants that had been battering markets.
The EUR/USD pair extended its rally on Friday, rising sharply and moving near the 1.1300 zone after the European session. With the pair positioned mid-range between 1.11873 and 1.14736, bulls remain in control, pushing toward new highs for the year amid renewed risk appetite.
The Pound Sterling extends its gains versus the US Dollar as the US-Sino trade war escalates, with China imposing 125% tariffs on US goods. Trade policies continue to drive price action, with economic data taking a backseat. At the time of writing, the GBP/USD trades at 1.3067, up 0.77%.
Federal Reserve (Fed) Bank of New York President John Williams noted on Friday that he overwhelmingly anticipates a general weakening in US economic data as tariffs continue to take root.
St. Louis Federal Reserve President Alberto Musalem said on Friday that he expects the economic growth this year to be lower than the trend, per Reuters.
Consumer confidence in the United States (US) continued to deteriorate in April, with the University of Michigan's (UoM) Consumer Sentiment Index dropping to 50.8 in the flash estimate from 57 in March. This reading came in worse than the market expectation of 54.5.
During an interview with Yahoo Finance on Friday, Federal Reserve Bank of Boston President Susan Collins noted that even amidst intense pressure, financial markets seem to be weathering the storm.
Pound Sterling (GBP) is firmer on the day but has struggled to keep up with its core G10 peers over the week, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The Euro (EUR) tested the upper 1.08s Monday and traded to a three-year high above 1.14 earlier. It is notable that the EUR surge is happening against a backdrop of widening EZ/US spreads which would ordinarily be a negative factor for the EUR, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The Canadian Dollar (CAD) is getting pulled along with the broader sell-off in the USD and is notching up another decent weekly gain—its fourth on the trot and the largest since late 2022.
The Producer Price Index (PPI) for final demand in the US rose 2.7% on a yearly basis in March, the data published by the US Bureau of Labor Statistics showed on Friday. This reading followed the 3.2% increase recorded in February and came in below the market expectation of 3.3%.
The US Dollar Index (DXY) bounced from a fresh three-year low of 99.02 achieved on Friday amid escalating tensions between China and the United States (US). The index currently hovers around 99.70, sharply down for a second consecutive day.
In an interview with CNBC on Friday, Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari said that their job is to make sure that inflation expectations don't rise, per Reuters.
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