Futures for the and rose slightly on Thursday, the last trading day of the week, as attention shifted to U.S.-Japan tariff talks. Meanwhile, UnitedHealth (NYSE:) shares dropped sharply after the company lowered its forecast.
President Donald Trump said there had been “big progress” in talks with Japan. This was one of the first in-person meetings since the widespread tariffs on global imports, which unsettled markets and raised concerns about a recession.
The dropped against all major currencies as progress in US-Japan trade talks reduced the need for a safe-haven currency.
prices remain some way off their Asian session highs and are hovering around the $3325/oz handle. Improved sentiment may be playing a part, but i still think the pullback is down to market participants unwinding their positions ahead of the weekend.
The ECB cut for a seventh consecutive meeting today with the Central Bank stating that the disinflation process is well on track. With trade talks still uncertain, President is unlikely to give clear clues about future rate changes.
According to a post by Donald Trump on Truth Social, the President stated that he had a very productive call with the President of Mexico yesterday. Likewise, he met with the highest-level Japanese Trade Representatives. It was a very productive meeting. Every Nation, including China, wants to meet! Today, Italy!
Investors will keep a close eye on upcoming talks with various countries to better understand the scale and impact of tariffs on specific nations and industries.
Economic Data Releases
The US session is quite a busy one ahead of the Easter long weekend. We have US weekly data as well as data due for release.
On the earnings front Netflix (NASDAQ:) will report its earnings later in the day as well.
There are also speeches from IMF Director Gregorieva and Fed policymaker , who is scheduled to speak in a fireside chat at the New York Fed’s State-of-the-Field Conference on Cyber Risk to Financial Stability.
Chart of the day – US Dollar Index (DXY)
The (DXY) has staged a mini recovery so far today as sentiment has shown some improvement.
However, yesterday’s daily close below support at 99.57 does leave the index vulnerable to further downside.
If the Trump administration announces any deals with countries, this could be a shot in the arm for the and inspire a move to the upside.
As things stand, the DXY is struggling to break back above the support-turned-resistance at 99.57.
Looking at the period-14 RSI and it is looking like it is about to leave oversold territory which would hint at a shift in momentum. Such a move could also lead to some USD upside.
Immediate resistance rests at the 100.00 psychological level before the 100.61 and 101.18 handles come into focus.
Support to the downside may be found at 99.00 before the 97.702 handle comes into focus.
US Dollar Index (DXY) Chart, April 17, 2025
Source: TradingView.com
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