| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 00:30 | Japan | Manufacturing PMI | April | 48.4 | 47.8 | 48.5 |
| 00:30 | Japan | Services PMI | April | 49.5 | 49.7 | 52.2 |
| 06:00 | United Kingdom | PSNB, bln | March | -12.31 | -16.05 | -16.44 |
During today's Asian trading, the US dollar rose moderately against major currencies, continuing yesterday's rally and retreating from a 3-year low after President Trump reassured investors by stating he had no plans to fire Federal Reserve Chair Jerome Powell. This eased concerns over the Fed's independence, which had been under scrutiny following Trump’s repeated criticism of Powell for not lowering interest rates.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.18% to 99.17. Yesterday, the index added 0.65%. “I have no intention of firing him,” Trump said on Tuesday, adding he wished Powell would be “more active" in cutting rates. The comment calmed markets, pushing the dollar higher in early Asian trading before stabilizing later. Earlier in the week, fears over trade tensions and Trump's Fed attacks had led investors to retreat from U.S. assets. However, positive signals on trade helped restore confidence. Trump and Treasury Secretary Scott Bessent hinted at a potential easing in U.S.-China trade tensions, with Trump saying a deal could “substantially” reduce tariffs, though “not to zero.” Analysts say markets are encouraged by the administration's focus on avoiding a market crash, which could give Trump leverage in trade negotiations. Additionally, the U.S. is engaging with multiple countries to revise tariffs, after Trump temporarily suspended increased import taxes to allow for negotiations. Talks with 34 countries are expected this week.
The Australian dollar and the New Zealand dollar rose 0.8% and 0.5% amid improved investor appetite for risk and positive news regarding the US trade deal with China (Australia's main trading partner).