The renewed selling pressure prompted the Greenback to set aside two daily advances in a row on Thursday as investors remained apathetic regarding any real progress on the US-China trade tensions.
The US Dollar (USD) retreats on Thursday as a cocktail of mixed economic data, dovish Federal Reserve (Fed) signals, and murky US-China tariff messaging unsettles market sentiment.
The Dow Jones Industrial Average (DJIA) registered gains of over 0.62% as investors became optimistic that the Federal Reserve (Fed) could cut interest rates at its June meeting amid growing concerns of a recession in the United States (US).
On Thursday, United States (US) President Donald Trump confirmed that a meeting with Chinese officials took place earlier that morning. He made the remarks during a press conference alongside Norwegian Prime Minister Jonas Gahr Støre, where he addressed several key international issues.
The USD/CAD pair was seen hovering around the 1.3900 zone on Thursday, mildly lower on the day, as the US Dollar (USD) struggles to maintain momentum amid renewed tariff uncertainty and conflicting US economic signals.
The EURUSD pair gained ground following Thursday’s European session, moving near the 1.1350 area within a relatively narrow daily range. The upward move builds on recent strength, keeping the pair comfortably within bullish territory for now.
The Pound Sterling recovered some ground versus the US Dollar on Thursday as market participants grew pessimistic about de-escalating the US-China trade war. Beijing is pressuring Washington to eliminate tariffs and has denied talks.
Bloomberg News reported on Thursday that the European Central Bank (ECB) is preparing to revise its monetary-policy framework to allow for more agile responses to price shocks amid mounting global volatility.
In an interview with CNBC on Thursday, Bank of England (BoE) Governor Andrew Bailey said that they see the impact of tariff uncertainty coming through to business investment and consumers.
US tariff revenues reached a record-high USD 12bn on 22 April; MTD, they are up 130% vs 2024 levels. At this pace, the increase in tariff revenue is likely to total a little less than 0.4% of GDP over a full year.
CNBC reported that European Central Bank (ECB) policymaker Robert Holzmann said that Eurozone interest rates should be held until more clarity emerges on the path of United States (US) tariffs and European Union (EU) countermeasures.
Federal Reserve (Fed) Governor Christopher Waller told Bloomberg on Thursday that tariffs are a part of most economic debates and noted that the general tone suggests that many companies are frozen by the uncertainty.
Silver price (XAG/USD) retraces to near $33.30 during North American trading hours on Thursday from an almost three-week high of $33.70 posted earlier in the day. The white metal corrects as investors become hopeful of significant de-escalation in trade war between the United States (US) and China.
The US Dollar (USD) is tracking lower again after two days of gains lifted the DXY some 2% off the three year low reached earlier in the week. The CHF and JPY are sitting near the top of the overnight performance table, just behind the SEK and NOK.
The Canadian Dollar (CAD) is trading modestly higher against the US Dollar (USD) in relatively quiet trade, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Beth Hammack, president of the Federal Reserve Bank (Fed) of Cleveland, said that the central bank should exercise patience in its monetary policy amid high uncertainty and added that she would not rule out making adjustments by June if the data warranted action.
European Central Bank (ECB) Chief Economist Philip Lane told Bloomberg News on Thursday that he doesn't expect the trade fallout to trigger a recession in the Euro area.
Durable Goods Orders in the United States (US) rose by 9.2%, or $26.6 billion, in March to $315.7 billion, the US Census Bureau reported on Thursday. This reading followed a 0.9% increase reported in February and surpassed the market expectation for an increase of 2% by a wide margin.
US citizens filing new applications for unemployment insurance increased to 222K for the week ending April 19, as reported by the US Department of Labor (DOL) on Thursday.
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