Dollar Strengthens on Trade Deal, But Details Keep Risk Sentiment Tame
| Action Insight Daily Report 5-9-25 |
Dollar Strengthens on Trade Deal, But Details Keep Risk Sentiment Tame |
Market reaction to the much-anticipated US-UK trade agreement was cautiously positive, though not particularly enthusiastic. While major US equity indices closed higher overnight, DOW, S&P 500, and NASDAQ all gave back early gains to finish near their opening levels, suggesting that the initial optimism faded as details of the deal emerged. The muted tone suggests that while the deal provided a headline boost, its content lacked the depth to drive a more sustained risk rally. The trade agreement itself, though billed as comprehensive, turned out to be more of a framework than a finalized deal. No formal documents were signed during the Oval Office event, and US President Donald Trump admitted that “final details are being written up,” promising a conclusive announcement in the coming weeks. Crucially, the 10% blanket tariff on UK imports will remain in place, setting a potential precedent that future US trade agreements—whether with the EU, ASEAN, or Canada—may not revert to pre-tariff norms. This signals a structural shift in global trade architecture where tariffs are normalized, not reversed. Despite the lack of concrete outcomes, Sterling has remained resilient and is currently the second strongest major currency so far this week, trailing only Dollar. Japanese Yen holds third place, while Kiwi, Loonie, and Euro sit at the bottom of the performance chart. Aussie and Swiss Franc are trading near the middle...... |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.1181; (P) 1.1259; (R1) 1.1305; More... EUR/USD's corrective fall from 1.1572 resumed by breaking through 1.1265 and intraday bias is back on the downside. Deeper fall would be seen to 38.2% retracement of 1.0176 to 1.1572 at 1.1039. But strong support should be seen there to bring rebound. On the upside, break of 1.1380 will suggest that the correction has completed, and bring retest of 1.1572. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Labor Cash Earnings Y/Y Mar | 2.10% | 2.40% | 2.70% | | 23:30 | JPY | Household Spending Y/Y Mar | 2.10% | 0.20% | -0.50% | | 03:00 | CNY | Trade Balance (USD) Apr | 96.2B | 94.3B | 102.6B | | 05:00 | JPY | Leading Economic Index Mar P | 107.7 | 107.4 | 107.9 | | 12:30 | CAD | Net Change in Employment Apr | 4.1K | -32.6K | | 12:30 | CAD | Unemployment Rate Apr | 6.80% | 6.70% |
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