📈 U.S.-China Trade Talks Remain in Focus Market Summary – May 14, 2025

📈 Market Summary – May 14, 2025

🔹 U.S.-China Trade Talks Remain in Focus
Markets opened the week with a surge in risk appetite after unexpected progress in U.S.-China trade negotiations. USD/JPY jumped nearly 3 yen from the 145 level to the 148s, while global equities responded strongly.

However, gains were partially reversed, with USD/JPY pulling back into the 146 range, giving up nearly half of Monday’s rally. Markets seem cautious due to the temporary nature (90-day agreement) and perceived China-led narrative, which has pressured the dollar.

White House advisor Hassett mentioned that new trade agreements may be announced after the Middle East tour. Negotiations with Japan are expected to take time, and talks with the EU are likely to become more complex. There are also whispers of potential progress with India.

🔹 Today’s Economic Calendar (Low Impact)

• U.S. MBA Mortgage Applications

• Canada Building Permits (March)

More impactful releases such as UK & Eurozone GDP, U.S. Retail Sales, and U.S. PPI are due tomorrow, making today likely a wait-and-see session.

🔹 Key Speakers Today

• BoE’s Broadbent (Deputy Governor)

• Bundesbank’s Nagel

• Spain’s Escrivá

• Fed Governor Waller

• Banque de France’s Villeroy de Galhau

• Fed Vice Chair Jefferson

• Austria’s Holzmann

• San Francisco Fed’s Daly (speaking in early hours)

🔹 Other Market Events

• Cisco Systems earnings

• OPEC Monthly Report & U.S. Crude Inventory data

💡 Strategy Notes

With few major data releases today, headlines and policymaker comments may drive short-term volatility.
→ For USD/JPY and cross-yen pairs, consider dip-buying on pullbacks or using a range-trading approach.

📊 Short-Term Technical Map (as of May 14)