ASIA-PAC FX UPDATE: DXY marginally softened as trade uncertainty lingers

DXY: -0.2%

• Slightly softened overnight as it took a breather following the prior day's advances that saw the DXY briefly approach to just shy of the 100.00 level after President Trump quashed the idea of firing Fed Chair Powell and amid tariff-related updates including reports that the White House is looking at cutting tariffs on Chinese imports by around half. Nonetheless, the tailwinds for the dollar have since petered out as trade uncertainty lingers with the White House Press Secretary noting that that there will be no unilateral reduction in tariffs and that China needs to make a deal, while Trump also suggested that car tariffs on Canada could go up which effectively nullified an earlier report that he was planning to exempt carmakers from some US tariffs.

EUR/USD: +0.2%

• Rebounded from this week's lows but remains beneath the 1.1400 level with price action in the single currency predominantly driven as a counterparty to recent dollar swings, while a slew of ECB speakers did little to shift the dial.

GBP/USD: +0.2%

• Marginally recovers and edges closer towards a retest of the 1.3300 level in quiet trade despite comments from BoE Governor Bailey who warned that they have to take the risk to growth from tariffs very seriously.

USD/JPY: -0.3%

• Pulled back from the 143.00 territory after rallying yesterday owing to the positive risk appetite and firmer buck, while recent data showed firmer Services PPI from Japan.

Antipodeans: AUD/USD +0.1% / NZD/USD +0.2%

• Price action is uneventful amid a lack of tier-1 data releases and the somewhat mixed risk appetite in Asia.

24 Apr 2025 - 04:11- ForexAsian Research- Source: Newsquawk