ASIA-PAC FX UPDATE: DXY takes a breather after strengthening yesterday despite weak Q1 GDP

DXY: +0.1%

• Takes a breather after having strengthened against G10 peers into month-end and was ultimately unfazed by the soft US data releases stateside in which the GDP Advance reading came in below expectations and contracted for the first time in three years, while trade updates had little sway with USTR Greer noting it is a matter of weeks not months to have initial trade deals and US was said to have reached out to China recently for tariff talks, according to Bloomberg citing influential social media account Yuyuan Tantian which is an affiliate of Chinese state broadcaster CCTV.

EUR/USD: -0.1%

• Remains subdued firmly beneath the 1.1400 level following the prior day's declines despite stronger-than-expected EU GDP data and reports that the EU is to present trade proposals to the US next week.

GBP/USD: -0.1%

• Trades lacklustre following a slide from the 1.3400 territory and now looks to test 1.3300 to the downside in the absence of UK-specific catalysts.

USD/JPY: +0.2%

• Ekes mild gains but with the upside capped after its recent choppy performance and with participants awaiting the BoJ policy decision.

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

• Price action is uneventful amid the mass holiday closures and with a muted reaction seen to the somewhat mixed Australian data and import/export prices.

01 May 2025 - 03:15- ForexAsian Research- Source: Newsquawk