Trusted by over 15 Million Traders
The Most Awarded Broker
for a Reason
market news
China and the United States intend to ease the trade war, and the US dollar has finally stabilized
Wonderful Introduction:
A quiet path will always arouse a relaxed yearning in twists and turns; a huge wave, the thrilling sound can be even more stacked when the tide rises and falls; a story, only with regrets and sorrows can bring about a heart-wrenching desolation; a life, where the ups and downs show the stunning heroism.
Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Analysis]: China and the United States intend to ease the trade war, and the US dollar has finally stabilized." Hope it will be helpful to you! The original content is as follows:
After Thursday’s decline, the US dollar (USD) regained its strength against its xm-forex.competitors early on Friday as markets evaluated the latest headlines on U.S.-China trade relations. Statistics Canada will release retail sales data for February later that day, and the University of Michigan will release revised data for April's consumer confidence index.
After falling 0.5% on Thursday, the U.S. dollar index approached 100.00 in early trading on Friday. U.S. President Donald Trump confirmed late Thursday that he had a meeting with Chinese officials earlier in the day. In addition, Bloomberg quoted people familiar with the matter and said that China is considering suspending 125% tariffs on some U.S. imported goods (including medical equipment and ethane) while discussing exemption of aircraft rental tariffs. U.S. stock index futures rose 0.1% to 0.5% in early trading on Friday, after major Wall Street indexes recorded strong gains on Thursday.
Eli Lee, chief investment strategist at OCBC Bank in Singapore, said: "The threatening peak of tariff levies may have passed. In terms of the US-China standoff, both sides said they will not further increase tariffs on the existing basis."
This round of tit-for-tat tariff dispute began with US President Trump's announcement of a significant increase in import tariffs on April 2, which triggered concerns about stagnation in trade between the two major economies around the world and cast shadows the global growth prospects.
Francesco Pesole, a foreign exchange strategist at Dutch International, said in a note to clients: "Market participants may feel that they have somehow regained ‘control’ of the U.S. government, which can drive them to a more friendly stance on key issues.Investors will seek more confirmation about the U.S. attitude to support further US dollar gains. ”
The pressure on the U.S. Treasury market has eased. Previously, Trump’s tariff storm weakened market confidence in U.S. leadership and assets, resulting in a massive sell-off in U.S. Treasury bonds, while the 10-year U.S. Treasury yields remained at 4.30% on Friday. As Tokyo inflation data was higher than expected, Japan’s Treasury yields also rose on the entire yield curve.
Although the market seemed calm on the surface, there were many warning signs that this state might not last long.
Basic foreign exchange market trends:
After the Politburo meeting held earlier on Friday, China said it would promptly lower the reserve requirement ratio (RRR) and interest rates. Meanwhile, PBOC President Pan Gongsheng said they will implement moderately loose monetary policies to promote the development of China's economy. After a rise of about 0.8% on Thursday, the Australian dollar/dollar maintained a consolidation phase around 0.6400 in early trading on Friday.
Bloomberg reported on Thursday that the European Central Bank (ECB) is preparing to revise its monetary policy framework to be more flexible in response to price shocks amid rising global volatility. The euro/dollar strives to maintain its foothold, trading around 1.1350 at the opening, in a negative area.
The UK National Statistics Office announced on Friday that retail sales in March increased by 0.4% month-on-month. GBP/USD responded to this data with a 0.7% increase better than the 0.4% decline recorded in February, and was well above the market expectations. GBP/USD responded to this data with the latest report around 1.3300 and falling more than 0.2% intraday.
The US dollar/yen rose more than 0.6% intraday, trading around 143.50 in early trading on Friday, setting a 10-day highest level. Bank of Japan Governor Kazuo Ueda reiterated on Thursday that if underlying inflation converged to its 2% inflation target, the central bank would continue to raise interest rates.
Bulk market fundamentals:
Gold prices were at a disadvantage on Friday, erasing almost all gains on Thursday, and this week it looked like It will almost close with losses. The trade conflict between the United States and China is becoming increasingly chaotic, and US President Donald Trump gives the impression that negotiations are underway, and China denies that. As of now, it is hovering around 3300.
Analysis of major currency trends:
Euro: The outlook for the euro/dollar has not changed, and intraday bias remains moderate downward. A short-term top pullback from 1.1572 may continue to move lower. But the downside should be bound by the 38.2% retracement level of 1.1039 from 1.0176 to 1.1572. On the plus side, breaking through 1.1572 will resume a larger upward trend.
The above content is all about "[XM Foreign Exchange Market Analysis]: China and the United States intend to ease the trade war, and the US dollar has finally stabilized". It was carefully xm-forex.compiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your transactions! Thanks for the support!
Every successful person has a beginning. Only by having the courage to start can you find the way to success. Read the next article now!
Disclaimers: XM Group only provides execution services and access permissions for online trading platforms, and allows individuals to view and/or use the website or the content provided on the website, but has no intention of making any changes or extensions, nor will it change or extend its services and access permissions. All access and usage permissions will be subject to the following terms and conditions: (i) Terms and conditions; (ii) Risk warning; And (iii) a complete disclaimer. Please note that all information provided on the website is for general informational purposes only. In addition, the content of all XM online trading platforms does not constitute, and cannot be used for any unauthorized financial market trading invitations and/or invitations. Financial market transactions pose significant risks to your investment capital.
All materials published on online trading platforms are only intended for educational/informational purposes and do not include or should be considered for financial, investment tax, or trading related consulting and advice, or transaction price records, or any financial product or non invitation related trading offers or invitations.
All content provided by XM and third-party suppliers on this website, including opinions, news, research, analysis, prices, other information, and third-party website links, remains unchanged and is provided as general market commentary rather than investment advice. All materials published on online trading platforms are only for educational/informational purposes and do not include or should be considered as applicable to financial, investment tax, or trading related advice and recommendations, or transaction price records, or any financial product or non invitation related financial offers or invitations. Please ensure that you have read and fully understood the information on XM's non independent investment research tips and risk warnings. For more details, please click here
CATEGORIES
News
- 【XM Decision Analysis】--ASX 200 Forecast: Eyes Higher Levels
- 【XM Market Analysis】--GBP/USD Forecast: Eyes Breakout
- 【XM Decision Analysis】--USD/MYR Analysis: Additional Bearishness Followed with a
- 【XM Market Analysis】--USD/CAD Analysis: Bullish Trend Highlights Concerns of Vul
- 【XM Forex】--USD/MXN Forecast: Holds Above 20