News

Japan Tokyo CPI ex Food, Energy (YoY) climbed from previous 1.1% to 2% in April

The EUR/USD pair weakens to near 1.1380 during the early Asian session on Friday. However, the downside for the major pair might be limited as investors remain concerned about the US-China trade tensions. Later on Friday, the final reading of Michigan Consumer Sentiment will be released. 

We might be seeing a US dollar catch-up trade in Asia.

The dollar struggled in Thursday’s US session even as stocks rallied and Treasury yields fell. It was a breakdown of the recent Buy America/Sell America correlation but today in Asia we’re seeing signs that it’s being re-asserted, albeit delayed.

The dollar is 30-45 pips stronger today against the Euro, yen, pound and Swiss franc and at the best levels in Asia so far. The gains in USD/JPY come despite a hotter Tokyo CPI report.

One of the themes going into the weekend is likely to be optimism about a US trade deal announcement: Perhaps with India or more broadly. That should be a tailwind for the ‘Buy America’ trade, though stocks have been rallying on that for three days already.

There could also be some help from the stock market with S&P 500 futures up 0.4%, led by a 4.8% rise in shares of Alphabet following earnings.

This article was written by Adam Button at www.forexlive.com.

China’s Finance Ministry said on Friday that the current world economic growth momentum was insufficient, with tariff and trade wars further impacting economic and financial stability, per Reuters.

In its first earnings report under the leadership of CEO Lip-Bu Tan, Intel said it plans to slash operational and capital expenses in the coming year.

Meta has laid off employees in the company’s Reality Labs division that is tasked with developing virtual reality, augmented reality and wearable devices.

Intel’s revenue forecast included a “wider than normal” range, which the company said was due to uncertainty caused by tariffs

The U.S. Constitution’s 22nd Amendment says, “No person shall be elected to the office of the President more than twice.” Trump was elected in 2016 and 2022.

The comments come as Alphabet and other tech companies prepare to pay up due to the Trump administration’s trade policies.

• Tariff wars and trade wars have further affected economic and financial stability
• All parties should further improve the international economic and financial system by strengthening multi-lateral cooperation
• All parties should pool more resources for Africa’s development

There isn’t really anything notable here on the trade war.

This article was written by Adam Button at www.forexlive.com.