Federal Reserve (Fed) Governor Adriana Kugler told Bloomber TV on Friday that the policy rate is currently moderately restrictive and added that it makes sense to maintain it.
Kazakhstan continues to produce significantly more oil than agreed and apparently has no plans to reduce production in May, Commerzbank's commodity analyst Carsten Fritsch notes.
G10 FX performance is varied heading into Friday’s NA session as most currencies claw back a portion of this week’s post-Fed losses against the US Dollar (USD).
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is fully reversing course this Friday ahead of the United States (US) trade talks with China in Switzerland over the weekend.
The Mexican Peso (MXN) is extending gains against the US Dollar (USD) on Friday, as markets digest a notable decline in Mexico's consumer confidence, a series of Federal Reserve speeches, and look ahead to the upcoming US-China trade discussions in Switzerland.
US Dollar (USD) short covering gathered pace vs. safe haven proxies. USDJPY was last at 145.30 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Markets brace for U.S.-China trade talks with hopes of tariff reductions, but limited progress may disappoint investors. Potential negative outcomes could trigger market pullback or sustain risk sentiment. Stay tuned for market response early next week.
Gold faces consolidation after stalling near $3500, with a lower high at $3435 and weakening momentum suggesting a temporary pause in the uptrend, Société Générale's FX analysts note.
The USD/CAD pair holds onto gains made on Thursday around 1.3920 during European trading hours on Friday. The Loonie pair performs strongly as the US Dollar (USD) strengthens on multiple tailwinds.
New Zealand Dollar (NZD) could weaken further against US Dollar (USD), but it might not be able to break clearly below 0.5870. In the longer run, bias for NZD is tilted to the downside toward 0.5870, potentially reaching 0.5835, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
US Dollar (USD) short squeeze gained traction and broadened against more currencies from safe haven to procyclical FX. MYR, Gold, JPY and THB led losses.
Richmond Federal Reserve Bank President Thomas Barkin said on Wednesday that they are watching the consumer activity most closely because that's the biggest part of the economy, per Reuters.
Australian Dollar (AUD) could drop below 0.6370 against the US Dollar (USD) but might not be able to maintain a foothold below this level. In the longer run, AUD must break and hold below 0.6370 before a move to 0.6330 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
In April, Chinese exports rose by 8.1% year-on-year to reach USD 315.7 billion, marking the highest level ever recorded for the month of April, Commerzbank's FX analyst Volkmar Baur notes.
Pound Sterling (GBP) is likely to decline further, potentially testing the support at 1.3190. In the longer run, scope for GBP to weaken to 1.3150; currently it is unclear whether GBP can break clearly below this level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Gold (XAU/USD) edges up near 1.0% on Friday and heads back above $3,335 at the time of writing. The additional leg higher comes after United States (US) President Donald Trump called upon China to open its markets for the US, adding that an 80% tariff on Chinese goods 'seems right', Trump added.
Data on wage developments in March was published in Japan this morning, and was rather disappointing overall once again, Commerzbank's FX analyst Volkmar Baur notes.
The Pound Sterling (GBP) strengthened yesterday as the Bank of England sent some hawkish signals while cutting rates by 25bp. The announcement of the UK-US trade deal later in the day added some support to the pound, but that was short-lived, ING's FX analyst Francesco Pesole notes
Further Euro (EUR) weakness is not ruled out vs US Dollar (USD); oversold conditions suggest any decline could be limited to a test of 1.1185. In the longer run, c in EUR toward 1.1145, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Yesterday afternoon, Donald Trump finally presented his first trade deal with the United Kingdom in the Oval Office. However, despite all the fanfare, it must be said that the substance was rather thin once again.
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