This is what you need to take into account to operate on Friday, May 2:
Optimism about a decala in the global commercial conflict helped the US dollar (USD) despite the disappointing data publications. The president of the USA, Donald Trump, informed that he is conducting commercial conversations with South Korea, Japan and India. He also said that there is a “very good” possibility of closing an agreement with China, although he added that any pact with Beijing must be in US terms. At the same time, a medium backed by Beijing said Thursday that US officials have contacted their Chinese counterparts for conversations. Tensions between China and the US persists, but optimism guided the action of Thursday.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. The US dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.41% | 0.50% | 1.73% | 0.43% | 0.44% | 0.58% | 0.64% | |
| EUR | -0.41% | 0.08% | 1.31% | -0.01% | 0.02% | 0.17% | 0.21% | |
| GBP | -0.50% | -0.08% | 1.22% | -0.07% | -0.06% | 0.08% | 0.12% | |
| JPY | -1.73% | -1.31% | -1.22% | -1.30% | -1.27% | -1.18% | -1.15% | |
| CAD | -0.43% | 0.01% | 0.07% | 1.30% | 0.02% | 0.15% | 0.19% | |
| Aud | -0.44% | -0.02% | 0.06% | 1.27% | -0.02% | 0.14% | 0.19% | |
| NZD | -0.58% | -0.17% | -0.08% | 1.18% | -0.15% | -0.14% | 0.04% | |
| CHF | -0.64% | -0.21% | -0.12% | 1.15% | -0.19% | -0.19% | -0.04% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
The president of Mexico, Claudia Sheinbaum, made statements saying that she had a very positive conversation with the president of the United States (USA), Donald Trump, adding that they will continue working in trade in the next few days. In addition, Trump said that US Treasury Secretary, Scott Besent, is negotiating with “200 nations” and “has no life”, while it is involved in commercial conversations.
Wall Street extended its last recovery in thin market conditions, and the main indexes are about to cut the losses inspired by tariffs.
The Bank of Japan (BOJ) announced its decision on monetary policy early Wednesday, maintaining the short-term interest rate without changes in the range of 0.40%- 0.50%, as expected. The governor of the Boj, Kazuo Ueda, offered a press conference later, noting that the uncertainty of commercial policies increased drastically in the decision of the officials. The Central Bank hopes to continue increasing rates if the economy and prices move as projected. Finally, he added that they hope that underlying inflation will cool due to tariffs and slow global growth. The Japanese Yen weakened with the news, with the USD/JPY extending profits beyond 145.50.
The US data were mixed: on the one hand, initial unemployment subsidy applications for the week on April 26 increased to 241K, much worse than the 224K early and the previous weekly figure of 223K. On the other hand, the ISM published the index of purchasing managers (PMI) manufacturing April, which fell to 48.7 from 49 in March, exceeding the expectation of the market of 48.
USA will publish the report of non -agricultural payroll (NFP) on Friday. The country is expected to have added 130K new jobs in April, while the unemployment rate is expected in 4.2%, without changes compared to March. However, employment -related data before the NFP report suggest a weak reading, which could weigh on the USD.
The EUR/USD lost the level of 1,1300 while the USD/USD stabilized around 1,3260. The currencies linked to raw materials also fell, despite the positive tone of Wall Street. The AUD/USD slipped around 0.6360, while the USD/CAD quotes in the 1,3850 region before Friday opening.
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
