- The US Dollar is showing gains for the week, holding steady within its established trading range against most major currencies.
- China has refuted claims of ongoing trade discussions between China and the US.
- The US Dollar Index continues to face resistance below the key psychological level of 100.00.
The US Dollar Index (DXY), which measures the US Dollar’s (USD) strength against a basket of six major currencies, is currently trading positively, increasing by approximately 0.40% as of Friday. Market participants are experiencing uncertainty due to conflicting statements from the US and China regarding the existence of trade deal negotiations. On Thursday, US President Donald Trump indicated that the US is engaged in discussions with China, which boosted equity markets and supported the Dollar’s recovery.
Furthermore, citing informed sources, Bloomberg reported on Friday that China is considering suspending its 125% tariff on selected US imports, including medical devices, ethane, and aircraft leasing. However, China’s Foreign Ministry stated that “China and the US are not currently holding any consultations or negotiations regarding tariffs.” When questioned about potential tariff exemptions on certain US products, the Foreign Ministry spokesperson responded, “I do not have specific information on that matter and suggest you consult the relevant authorities.”
Regarding the economic schedule, the upcoming week presents a relatively sparse calendar. The Federal Reserve (Fed) has entered its communication blackout period prior to the upcoming Federal Open Market Committee (FOMC) meeting scheduled for May 7. This Friday, market participants will be watching the final April reading of the University of Michigan Consumer Sentiment Index and inflation expectations.
