US dollar declines amid trade war uncertainty
The US dollar fell against most major rivals on Thursday amid growing uncertainty about the trade war between the US and China.
The US administration said it’s considering a drop in China tariffs from 145% currently to 50%, boosting most assets.
Trump stated on Tuesday that current tariffs on Chinese imports are “too high” and won’t stay long this way, but won’t fall to zero.
Trump stated that he’s talking daily with the Chinese side to reach a deal, but China asserted there are no talks taking place currently with the US before removing unilateral tariffs.
Otherwise, earlier data showed US unemployment claims rose to 222 thousand in the week ending April 19, matching estimates and up from 216 thousand in the previous reading.
On trading, the dollar index fell 0.4% as of 16:11 GMT to 99.5, with a session-high at 99.8, and a low at 99.2.
Aussie
The Australian dollar rose 0.6% against its US counterpart as of 16:22 GMT to 0.6398.
Loonie
The Canadian dollar fell 0.1% against the US dollar to 0.7198.
Wall Street rises as analysts follow latest trade war statements
US stock indices rose on Thursday as markets analyze the latest statements and signals from China and the White House on the trade war.
Wall Street was boosted by a drop in US treasury yield while investors await important quarterly results from major tech corporations.
US 10-year treasury yields fell 4.7 basis points today to 4.34%, while two-year yields slipped to 3.83%, as 30-year yields dropped to 4.791%.
The US administration said it’s considering a drop in China tariffs from 145% currently to 50%, boosting most assets.
Trump stated on Tuesday that current tariffs on Chinese imports are “too high” and won’t stay long this way, but won’t fall to zero.
Trump stated that he’s talking daily with the Chinese side to reach a deal, but China asserted there are no talks taking place currently with the US before removing unilateral tariffs.
Otherwise, earlier data showed US unemployment claims rose to 222 thousand in the week ending April 19, matching estimates and up from 216 thousand in the previous reading.
On trading, Dow Jones rose 0.5% as of 14:53 GMT, or 185 points to 39,792 points, while S&P 500 added 1.1%, or 57 points to 5433 points, as NASDAQ rallied 1.6%, or 262 points to 16,973 points.
Oil prices resume gains with eyes on nuclear talks
Global oil prices rose aggressively once more on Thursday in European trade, approaching three-week highs as markets look forward to the new round of US-Iran nuclear talks.
The prices remain under pressure as some OPEC+ members proposed another steep production hike in June for the second month in a row.
Prices
US crude rose 1.3% today to $63.06 a barrel, with a session-low at $62.14.
Brent added 1.4% to $67.05 a barrel, with a session-low at $66.05.
On Wednesday, US crude lost 2% away from three-week high at $64.83, while Brent shed 2.5% away from April 4 highs at $68.61.
Nuclear Talks
Iran and the US will hold the third round of talks by the end of this week for a potential agreement on restricting Iran’s nuclear program.
Any progress in talks would be taken as a sign of a potential lessening of US sanctions on Iranian crude exports, which would increase supplies.
US President Trump’s administration issued new sanctions targeting Iranian oil exports, including sanctions on Chinese refineries, raising the pressure on Tehran amid talks on Iran’s nuclear program.
Potential Trade Deal
Trump asserted the US goal of reaching a fair trade deal with China, however, he once more threatened new tariffs on Beijing if no deal is reached.
US Treasury Secretary Scott Bessent said Trump didn’t propose to unilaterally remove tariffs from China, asserting the US will not cut tariffs on China by over 100%.
Bessent said there’s no clear timeline for communications between both sides, with the process of complete trade rebalancing potentially taking two or three years.
Reports also indicated that Trump is considering tariff relief for Chinese auto parts under pressure from the US auto industry.
OPEC+
Reuters reported that several OPEC+ members are proposing a production hike in June for the second month in a row, which would pressure prices even further.