🌍 Market Overview: Correction Mood Ahead of the Weekend?
This week, the USD strength and JPY weakness trend became increasingly pronounced. The US–UK trade agreement notably boosted market risk appetite, gaining attention as the first major deal under the Trump administration. While this raised expectations for progress with other countries, pushback from China and the EU, as well as expected difficulties in negotiations with Japan and South Korea, are weighing on sentiment.
💵 Interest Rates & Policy Impact
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FOMC: Held rates steady
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BOE: Implemented a 0.25% rate cut
The BOE MPC vote was split, with two members favoring no change, briefly boosting GBP. However, Fed Chair Powell’s firm stance against pressure for rate cuts helped maintain an overall USD-bullish tone.
📉 Weekend Outlook
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U.S. data and earnings calendar is relatively light
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Profit-taking or positioning adjustments may emerge after a strong trend week
📊 Key Data Tonight
🇨🇦 Canada April Employment Report
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Net Change in Employment: +5,000 (prior: -32,600)
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Unemployment Rate: 6.8% (prior: 6.7%)
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Labor Force Participation Rate: 65.3% (prior: 65.2%)
➡️ CAD could see heightened volatility immediately following the data release.
🗣 Notable Central Bank Speeches
Bank of England
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Governor Andrew Bailey
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Chief Economist Huw Pill
Federal Reserve
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Governor Michael Barr
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Governor Adriana Kugler
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John Williams (New York Fed)
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Thomas Barkin (Richmond Fed)
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Austan Goolsbee (Chicago Fed)
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Governor Christopher Waller
➡️ A post-FOMC wave of commentary could lead to sentiment adjustments or trend reversals.
✅ Strategy Outlook
GBP:
Maintain a bullish bias.
Supported by the UK–US trade agreement and the MPC’s split vote — downside likely limited.
CAD:
Event-driven short-term trading outlook.
A surprise in jobs data could spark a new short-term trend.
