Forex News

Silver prices slipped to around $33.30 per ounce on Friday, paring gains from earlier in the week as signs of easing in global trade tensions lifted the dollar, pressuring greenback-denominated commodities. The dollar strengthened as US President Donald Trump claimed that trade talks with China are ongoing, with additional signs of progress in negotiations with Japan and South Korea further boosting investor sentiment. China is also reportedly considering waiving its 125% tariff on certain US goods, raising hopes of further de-escalation in the trade war. Moreover, Trump made a u-turn on his attacks against Federal Reserve Chair Jerome Powell this week, saying he never had any intention to replace the central bank chief. Meanwhile, Cleveland Fed President Beth Hammack said a move could come in June if supported by data.

Frankfurt’s DAX edged higher on Friday, climbing above the 22,100 mark and extending its winning streak to a fourth consecutive session. The index is on track to notch a weekly gain of nearly 4.5%. Investor sentiment was buoyed by hopes that the trade dispute between President Donald Trump and China may de-escalate. China is reportedly considering lifting its 125% tariff on certain U.S. goods, easing concerns about a potentially damaging global trade war. Meanwhile, market focus remained on corporate earnings as the reporting season continued.

The STOXX 50 rose 0.7% and the STOXX 600 gained 0.4% on Friday, marking a fourth consecutive session of gains. Both indexes were on track to end the week up approximately 3.7% and 2.4%, respectively. Investor sentiment was buoyed by easing trade tensions and a more conciliatory tone from the White House. On Thursday, President Trump stated that his administration was in discussions with China, while Bloomberg reported today that Beijing is considering suspending its 125% tariff on certain US imports, citing sources familiar with the matter. Travel and auto stocks were among the top performers. Meanwhile, earnings season continues, with shares of Safran climbing 3.6% after the company reported a stronger-than-expected rise in first-quarter revenue and expressed confidence in meeting full-year targets, excluding any potential tariff impact.

The Shanghai Composite shed 0.07% to close at 3,295 while the Shenzhen Component rose 0.39% to 9,917 in mixed trade on Friday, although both benchmarks ended the week with gains as hopes for a potential thaw in US-China trade tensions lifted investor sentiment. Those moves followed comments from US President Donald Trump who insisted that trade negotiations with China are ongoing, contradicting Beijing’s assertion that no talks are currently taking place. China is also reportedly considering waiving its 125% tariff on certain US goods, raising hopes of further de-escalation in the trade war. Additionally, People's Bank of China Governor Pan Gongsheng said that the central bank will maintain an “appropriately loose” monetary policy to support, warning against the global repercussions of tariffs. Top gainers included Talkweb Information and Satellite Chemical, both up 10%, and Eoptolink Technology, which gained 5.3%.

France’s business climate indicator inches lower to 96 in April 2025 from 97 in the previous month, remaining below its long-term average of 100. Sentiment dipped slightly among constructors (97 vs 98) and fell more sharply among retailers (95 vs 100), weighed by weaker business outlooks and ordering intentions. In contrast, confidence improved in manufacturing (99 vs 96) and services (98 vs 97). Meanwhile, the employment climate indicator rose to 97, though it remained below its long-term average for the eleventh straight month. The improvement was mainly due to increased future workforce balances in services (including temporary work agencies).

France’s manufacturing climate indicator rose to 99 in April 2025 from 96 in March, beating market expectations of 96 and nearing its long-term average of 100. This was the highest reading since May 2024, driven by reduced pessimism regarding overall order books (-18 vs -26), foreign orders (-17 vs -21), and anticipated workforce changes (-1 vs -2). Manufacturers were also more optimistic about future selling prices (7 vs 5) and personal production prospects (11 vs 6). However, sentiment worsened on the general production outlook (-16 vs -11), and the economic uncertainty gauge rose (29 vs 24). By subsector, the business climate improved in food, transport, and machinery manufacturing—especially in food products and motor vehicles—while remaining weak and stable in other areas, notably textiles and apparel.

Schneider Electric increased to a 4-week high of 217.55 EUR. Over the past 4 weeks, Schneider Electric lost 7.18%, and in the last 12 months, it increased 2.74%.

The unemployment rate in Hungary fell to 4.3% in January-March 2025, from 4.6% in the same period a year ago. The number of unemployed individuals dropped by 14 thousand from a year earlier to 212.8 thousand. Of this total, 116.2 thousand were men and 96.5 thousand were women. The jobless rate for men was 4.5%, 0.4 percentage points lower than the previous year, while for women it remained broadly the same at 4.2%. The average time spent looking for a job was 13.1 months, with 41.8% of all unemployed individuals had been looking for a job for less than 3 months, while 37% had not found a job for at least a year. Meanwhile, the number of employed persons rose by 1.8 thousand to 4.692 million. Employment among men increased by 12.7 thousand to 2.493 million, while employment among women declined by 10.9 thousand to 2.198 million.

Copper futures fell nearly 2% to below $4.80 per pound on Friday, giving back gains from earlier in the week as a stronger US dollar dampened demand for dollar-denominated commodities. The greenback firmed on signs of easing global trade tensions, with US President Donald Trump affirming that negotiations with China are underway, while talks with Japan and South Korea showed signs of progress. China is also reportedly considering waiving its 125% tariff on certain US goods, raising hopes of further de-escalation in the trade war. While the trade optimism supported broader market sentiment, it weighed on copper prices by strengthening the dollar, making the metal more expensive for foreign buyers. Meanwhile, uncertainty persists amid speculation that copper could be included in future trade measures, adding volatility to the market. This same uncertainty has contributed to recent price gains, as traders positioned themselves for potential supply risks.

The offshore yuan stabilized around 7.28 per dollar after a brief decline earlier in the session, as investors assessed supportive remarks from PBoC Governor Pan Gongsheng and potential signs of easing US-China trade tensions. During the G20 Finance Ministers and Central Bank Governors Meeting, Pan reaffirmed the central bank’s commitment to maintaining an “appropriately loose” monetary policy to support high-quality development, while also cautioning against the broader global fallout of imposing tariffs. Meanwhile, US President Donald Trump stated late Thursday that trade negotiations with China are ongoing, contradicting Beijing’s earlier claim that no talks are currently taking place. Moreover, China is weighing the possibility of exempting certain American imports from its steep 125% tariffs, raising hopes for further signs of easing US-China trade tensions.

Retail sales in the UK rose by 0.4% month-over-month in March 2025, defying forecasts of a 0.4% decline, following a downwardly revised 0.7% increase in the previous month. Sales in non-food stores increased by 1.7%, reaching its highest level since March 2022. Clothing stores saw the strongest growth (+3.7%), with retailers attributing the boost to favorable weather. Other non-food stores also saw a gain (+2.4%), particularly in second-hand goods stores and retailers selling garden supplies. Meanwhile, food store sales declined by 1.3%. Excluding fuel, retail sales grew by 0.5% from a month earlier. On a yearly basis, retail sales climbed 2.6%, exceeding forecasts and February’s 1.8% increase. For the first quarter, retail trade rose by 1.6%, marking the largest three-month increase since July 2021.

Gold slipped to around $3,300 per ounce on Friday, reversing gains from the previous session, as China considers halting tariffs on certain US imports, reducing the metal's safety appeal. Reports revealed that China is urging businesses to identify products eligible for exemption from its 125% tariffs, signaling a shift toward de-escalation in the trade war. This follows President Trump’s confirmation that trade talks with China are ongoing, contradicting Chinese claims that no discussions have taken place. Gold has wiped out its prior gains and is on track for a modest weekly loss. Earlier this week, it hit a fresh record of $3,500 amid concerns over the US economy, but pulled back after Trump softened his position on the Fed's independence. Year-to-date, gold has risen about 30%, while the gold-to-silver ratio has surged to its highest level since 1994 (excluding the pandemic), highlighting bullion's impressive outperformance.

European equity markets were poised for a higher open on Friday, buoyed by signs of easing global trade tensions that lifted investor sentiment. US President Donald Trump stated that negotiations with China are ongoing, while talks with Japan and South Korea also appeared to be progressing. Reports that Beijing may reduce its 125% tariff on select US goods added to the optimism. Investors will also be watching fresh economic data, including UK retail sales and French business confidence figures, for further market cues. On the corporate front, earnings reports are expected from AON, LyondellBasell Industries, and Bankinter, among others. In premarket trade, Euro Stoxx 50 futures rose 0.6%, while Stoxx 600 futures were up 0.4%.

Top currency losers are Japanese Yen (-0.73%), Polish Zloty (-0.53%), Swiss Franc (-0.48%), Euro (-0.46%) and British Pound (-0.38%). Gains are led by Dollar Index (0.35%).

China is reportedly considering exemptions on some U.S. goods from its steep 125% import tariffs, Bloomberg News said Friday, as Beijing weighs the economic toll of the ongoing trade war. Items under review include medical equipment, industrial chemicals like ethane, and plane leases. These possible moves would echo U.S. exemptions, such as excluding electronics from its own 145% tariffs on Chinese imports, amid cost concerns. While the U.S. imports more from China than vice versa, Beijing’s potential carve-outs underscore its dependence on certain American goods. However, Bloomberg noted that discussions are ongoing and may not lead to action. The tariff dispute escalated earlier this month after President Trump imposed new duties to shrink the U.S. trade gap.

Singapore’s manufacturing production increased 5.8% yoy in March 2025, softer than estimates of an 8.1% gain, following a revised 0.9% rise in February. This marked the ninth straight month of expansion in industrial output, due mainly to a surge in transport engineering (20.2% vs 15.7% in February), driven by upturns in aerospace, while rebounding sharply in biomedical manufacturing (17.2% vs -14.3%), amid a sharp recovery in pharmaceuticals. Output also grew for electronics (8.9% vs 0.2%), boosted by rises in semiconductors. By contrast, output shrank for chemicals (-6.0% vs -0.9%), linked to declines in petrochemicals. Similar situations applied to general manufacturing (-13.0% vs -1.4%), owing to falls in food, beverages, and miscellaneous, and precision engineering (-0.1% vs 15.7%), weighed down by declines in precision modules and components. Monthly, manufacturing output unexpectedly fell 3.6%, missing forecasts of a 0.6% rise, after a downwardly revised 2.9% drop in February.

China’s economy has had a strong start to the year and continues to recover, with financial markets remaining stable, the People's Bank of China (PBoC) Governor Pan Gongsheng stated at the G20 Finance Ministers and Central Bank Governors Meeting in Washington. He reaffirmed that the PBoC will maintain an “appropriately loose” monetary policy to support high-quality development. Pan also warned that economic fragmentation and trade tensions are disrupting global industrial and supply chains, weakening worldwide growth. “There are no winners in trade wars and tariff wars,” he said, urging major economies to take concrete steps to enhance international cooperation and protect global economic and financial stability.

Malaysian palm oil futures surged around 2.5% to above MYR 4,100 per tonne, rebounding from a subdued session the day before, supported by remarks from the Malaysian Palm Oil Council (MPOC) that demand from major buyers China and India may rise in the coming months. China is expected to increase imports in May and June to replenish inventories ahead of summer, while India may take advantage of current prices to rebuild stockpiles. For the week, futures are set to gain near 4%, snapping a three-week losing streak, on signs of strong exports. Cargo surveyors noted Malaysian palm oil shipments rose between 11.9% and 18.5% in the first 20 days of April from the same period in March. Adding to positive sentiment, U.S. President Trump voiced support for a trade deal with China that avoids tariffs near 145%, easing global market jitters. Still, gains were limited by expectations of higher output as plantation activity picks up and caution ahead of the July expiry of the U.S. tariff pause.

Japan’s 10-year government bond yield climbed to around 1.35% on Friday and was on track to end the week higher, as easing global trade tensions dampened demand for safe-haven assets. US President Donald Trump stated that negotiations with China are ongoing, while talks with Japan and South Korea also appeared to be progressing. China is also reportedly considering waiving its 125% tariff on certain US goods, raising hopes of further de-escalation in the trade war. Adding to the improved risk tone, Trump reversed his earlier criticism of Fed Chair Powell, stating he never intended to replace him, a shift that helped stabilize policy expectations and reduce uncertainty. On the domestic front, data showed Tokyo’s core inflation surged to a two-year high of 3.4% in April, reinforcing the challenge facing the Bank of Japan as it seeks to balance rising price pressures with external trade risks. The central bank is widely expected to keep rates on hold at its upcoming policy meeting.

The yield on the US 10-year Treasury note held steady around 4.31% on Friday after sliding for three straight sessions, as investors assessed the latest comments from President Trump on global trade. Trump asserted that trade negotiations with China are ongoing, despite denials from Beijing. Ongoing talks with Japan and South Korea also signaled progress, helping ease market concerns over escalating trade tensions. Moreover, China is reportedly considering waiving its 125% tariff on certain US goods, raising hopes of further de-escalation in the trade war. Adding to the calmer tone, Trump reversed course on his previous criticism of Fed Chair Powell, stating he never intended to replace him. Meanwhile, Cleveland Fed President Beth Hammack said a rate cut could be considered as early as June if supported by economic data, a statement that could influence the path of yields in the coming weeks.