The US dollar has been broadly supported, with the dollar index hitting a weekly peak earlier today. This comes as the Fed held rates steady and signalled a wait-and-see approach.
The British pound has been a notable outperformer following a Bank of England decision that included a rate cut but carried a hawkish tone, with two members voting to keep rates unchanged.
President Trump announced a full trade deal with the UK, though it excludes reciprocal tariffs and reflects the UK’s limited role as a US trading partner. He also hinted that further deals are in advanced stages.
Trump intensified criticism of Fed Chair Powell, calling him “clueless” and dismissing inflation concerns. Ahead of US-China trade talks in Geneva, Trump refused to preemptively lower tariffs, while China has introduced rate cuts and other policies to strengthen its economy and negotiating position.
Elsewhere, Japan is exploring shipbuilding and tariff-related talks. Ukraine’s central bank may shift its reference currency from the US dollar to the euro. Both the Riksbank and Norges Bank left rates unchanged.
Germany’s industrial production rose 3% in March, outperforming the 1% forecast, likely due to tariff-related front-running.
US economic data due today includes Q1 productivity, labour costs, jobless claims, wholesale sales, and New York Fed inflation expectations, with particular focus on jobless claims following last week’s spike.
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