Forex pairs market: USD rebounds on signs of Trump flexibility

While stock markets have experienced volatility of late, in part due to trade tariff fears, currencies have taken more of a wait and see approach. The dollar appears to be rewarding the patience this morning as it makes gains on reports that the White House will be more flexible than previously thought on US-China tariff negotiations.

The dollar pairs are generally lower, with the AUD/USD and NZD/USD reversing the majority of yesterday’s gains. The EUR/USD and GBP/USD remain range bounded, with moderate losses on both pairs. EUR/USD remains under pressure within a tight range with USD slightly bid against the backdrop of rising US yields. Final Services PMIs in Euroland, US trade balance next on tap.

The EUR/GBP has stabilised, with the pair making small gains in favour of the euro this morning. The Canadian dollar is reversing some of its recent NAFTA inspired gains, with the USD/CAD slipping lower for the first time in a few sessions. The yen pairs are lifting off the lows, making gains for the third day in a row.

Japan’s Nikkei (N225) ended 1.5 percent higher. Markets in mainland China, Hong Kong and Taiwan were closed for the Tomb Sweeping Day holiday on Thursday.
U.S. S&P 500 mini futures (ESc1) rose 0.5 percent, with Wall Street set to extend Wednesday’s rebound.

Proposed 25 percent U.S. tariffs on some 1,300 industrial technology, transport and medical products from China will be subject to a public comment and consultation period that is expected to last around two months.

Market moving news today: UK services PMI at 09.30, Canadian trade balance is at 13.30, US unemployment claims and at 18.00, we have FOMC member Bostic speaking. All times are London times.

Sources: 

https://www.dailyfx.com/market-news?ref=TopNav

https://www.fxstreet.com/news/eur-usd-challenges-session-lows-near-12270-201804050520

https://www.ft.com/news-feed