The U.S. dollar index (DXY) rose by 0.12% on Friday, recovering from a two-week low amid renewed tariff tensions. President Trump threatened to increase tariffs on European automobile imports to as high as 25%, impacting market sentiment.
In economic data, the U.S. April ISM manufacturing index remained stagnant at 52.7, below the expected increase to 53.2. The ISM prices paid sub-index climbed to a four-year high of 84.6, surpassing expectations of 80.3. Meanwhile, swaps markets reflect an 8% chance of a 25 basis point rate cut by the Federal Reserve at its upcoming June meeting.
On the currency front, the euro fell 0.06% after earlier gains, while the yen dropped 0.28%, pressured by the troubling manufacturing data from Japan and heightened U.S.-EU tariff tensions. The Japan April Tokyo CPI rose by 1.5% year-on-year, missing the forecast of 1.7%. The markets are pricing in a 65% chance of a 25 basis point rate hike by the Bank of Japan in June.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
