Kansas City Federal Reserve (Fed) President Jeff Schmid said that he would remain “squarely focused” on inflation and cautioned that new United States (US) import taxes could drive prices higher and bolster rising public inflation expectations.
During her Thursday remarks, Dallas Federal Reserve (Fed) President Lorie Logan warned that tariffs exceeding expectations would almost certainly spark a surge in both unemployment and inflation.
Bank of England (BoE) Deputy Governor Sarah Breeden gave her views on the recently announced United States (US) tariffs and their potential economic impact.
So the US paused reciprocal tariff action for 90 days on non-retaliating countries but maintained a base line 10% tariff just hours after imposing aggressive levies on its major trading partners. China gets whacked with 125% tariffs though, Scotiabank's Chief FX Strategist Shaun Osborne notes.
ECB’s April policy meeting could be a close call, but we lean towards a 25bps cut. For now, our base case is a June hold, but we see growing risks of another cut given tariff threats.
Pound Sterling (GBP) is up about 0.6% vs. the USD and a mid-performer among its G10 peers, climbing back into the 1.29-1.30 congestion range that had prevailed ahead of last week’s tariff turbulence, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Euro (EUR) is entering Thursday’s NA session with an impressive 1.1% gain, climbing back toward the upper end of its one-week range and threatening a break to levels last seen in October.
US citizens filing new applications for unemployment insurance ticked a tad higher to 223K for the week ending April 5, as reported by the US Department of Labor (DOL) on Thursday. This print matched initial estimates and was higher than the previous week's unrevised tally of 219K.
Gold rose back above 3100, from under 3000 overnight as earlier sell-off dissipated. XAU/USD was last at 3123 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
In an interview with CNBC on Thursday, Kevin Hassett, Director of the US National Economic Council (NEC), said that there is a big inventory of deals that are very close to the finish line, per Reuters.
European Commission President Ursula von der Leyen confirmed on Thursday that they have agreed to pause countermeasures against the US tariffs for 90 days.
USD/JPY jumped sharply to 148.27 overnight as safe haven trades unwind after Trump announced a 90-day tariff pause. We had cautioned for the risk of a short squeeze in our report yesterday. Pair was last at 145.78 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
EUR/NOK's recent breakout attempt above 12.05 was short-lived, as strong resistance pushed the pair back into its consolidation range. Key support at 11.68 now becomes critical for the near-term outlook, Societe Generale's FX analysts report.
Australian Dollar (AUD) rebounded 4% from its lows overnight after Trump pauses tariffs on most nations for 90 days. Pair was last at 0.6170 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
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