| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | GDP (QoQ) | Quarter I | -0.2% | 0.2% | 0.4% |
| 06:00 | Germany | GDP (YoY) | Quarter I | -0.2% | -0.2% | 0.0% |
| 06:00 | United Kingdom | Retail Sales (YoY) | April | 1.9% | 4.5% | 5% |
| 06:00 | United Kingdom | Retail Sales (MoM) | April | 0.1% | 0.3% | 1.2% |
| 06:45 | France | Consumer confidence | May | 91 | 93 | 88 |
During today's Asian trading, the US dollar declined moderately against major currencies, heading for its first weekly decline in five weeks, as growing concerns over the country's deteriorating fiscal position led investors to seek safer alternatives such as the euro, yen, and swiss franc. The move follows Moody’s recent downgrade of U.S. credit outlook and renewed focus on the nation's ballooning $36 trillion debt, along with President Donald Trump's controversial tax reform plan, which could significantly widen the deficit.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.29% to 99.64. This comes despite a sharp rise in U.S. Treasury yields, with the 30-year bond yield hovering above 5%, close to its October 2023 peak of 5.179% - a level not seen since mid-2007. However, these elevated yields have failed to support the dollar, as foreign investors are increasingly shunning U.S. assets in what some are calling a “Sell America” wave. Trump’s tax bill passed narrowly in the Republican-led House of Representatives and is now set for a lengthy and uncertain debate in the Senate. This legislative risk has contributed to market unease, overshadowing earlier optimism linked to a temporary pause in trade tariffs.
The euro gained 0.3% and is set for a 1.35% weekly increase - its first in over a month. Year-to-date, the euro is up 9% as it benefits from a shift in investor sentiment away from the dollar amid escalating geopolitical and fiscal risks. Analysts suggest the single currency is emerging as a relative safe haven in the face of U.S. instability.
The yen rose 0.4% and is set to gain 1.45% on the week. The move was supported by data showing Japan’s core inflation rose at its fastest annual pace in over two years in April. This raises the likelihood of further monetary tightening by the Bank of Japan, which faces a tough balancing act between tackling inflation and mitigating the economic drag from Trump’s trade policies.