Trade Tensions
USD Decline: The U.S. dollar has weakened by approximately 0.5% against a basket of currencies, influenced by escalating trade tensions and policy uncertainties.
Deutsche Bank Forecast: Analysts at Deutsche Bank anticipate a structural downtrend for the dollar, projecting the EUR/USD pair to approach 1.30 in the coming years, nearing purchasing power parity.
Market Volatility: Recent mixed signals from the U.S. administration regarding tariffs and Federal Reserve leadership have contributed to market volatility, affecting both equities and currencies. Reuters
🇮🇳 Indian Rupee Under Pressure Geopolitical Tensions: Following a significant militant attack in Kashmir, the Indian rupee has depreciated, trading at 85.66 against the U.S. dollar.
Market Reaction: The incident has led to increased caution among forex and interest rate traders in India, with bond yields rising and forward premiums widening.
💱 Currency Pair Highlights EUR/USD: The euro has strengthened, reaching 1.1383, influenced by a €500 billion EU fiscal stimulus and a weakening dollar.
GBP/USD: The British pound is trading at 1.3303. Historically, April has been a strong month for this pair, with an average gain of +0.66% since 1971.
USD/JPY: The pair is hovering around 141.92, with the yen gaining strength amid safe-haven demand and discussions about Japan moving away from ultra-low interest rates.
USD/TRY: The Turkish lira remains relatively stable, with no significant fluctuations reported today.
📊 Economic Indicators U.S. Unemployment Rate: The unemployment rate for April stands at 4.2%, reflecting a stable labor market despite ongoing trade uncertainties.