Here's what you need to know on Monday, May 5:
Investors adopted a careful stance early Monday, while preparing for major macroeconomic events this week. The U.S. economic calendar will feature ISM services PMI data for April on Monday before the Federal Reserve (FED) holds a two -day policy meeting from Tuesday.
US dollar prices last 7 days
The table below shows the percentage change of the US dollar (USD) against the listed major currencies in 7 days. The US dollar is the strongest against Japanese Yen.
| USD | EUR | Gbp | Jpy | Cad | Aud | Nzd | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.36% | 0.27% | 0.48% | -0.39% | -1.12% | -0.23% | -0.40% | |
| EUR | -0.36% | -0.15% | 0.11% | -0.76% | -1.56% | -0.58% | -0.78% | |
| Gbp | -0.27% | 0.15% | 0.25% | -0.60% | -1.43% | -0.44% | -0.62% | |
| Jpy | -0.48% | -0.11% | -0.25% | -0.84% | -1.56% | -2.09% | -0.62% | |
| Cad | 0.39% | 0.76% | 0.60% | 0.84% | -0.86% | 0.17% | -0.01% | |
| Aud | 1.12% | 1.56% | 1.43% | 1.56% | 0.86% | 1.00% | 0.81% | |
| Nzd | 0.23% | 0.58% | 0.44% | 2.09% | -0.17% | -1.00% | -0.18% | |
| CHF | 0.40% | 0.78% | 0.62% | 0.62% | 0.00% | -0.81% | 0.18% |
The heat map shows the percentage change of basic currencies against each other. The base currency is taken from the left column, while the quote currency is taken from the top row. For example, if you choose the US dollar from the left column and move to the horizontal line with the Japanese Yen, the percentage shown in the box represents the USD (base)/jpy (quote).
The US Dollar (USD) The index registered a small losses on Friday but managed to end the week in positive territory. Data published by the Bureau of Labor Statistics showed that nonfarm payroll (NFP) rose 177,000 in April. This reading came better than the market expectation for an increase of 130,000 but failed to boost the USD, as other details of the report showed that there were downward changes in March and February NFP figure. The USD index is trading marginally below the day below 100.00 in Europe's morning.
This weekend, US president Donald Trump said they would lower the tariffs in China “at some point” and added that they could announce trade deals this week when asked about it. Trump also noted that they could start imposing 100% tariffs on imports of foreign films. Finally, he argued that interest rates should be lowered but rewrite that he will not remove Jerome Powell as Fed chairman before his term in May 2026. In the early European session on Monday, US stock futures are missing about 0.5% in the day, reflecting a market atmosphere.
Increased geopolitical tensions seemed to weigh the market mood on Monday. A missile arrived near the Israel Ben Gurion Airport on Sunday, and Iran claimed that Iran was with Houthis the responsibility for the strike. Israeli Prime Minister Benjamin Netanyahu has promised to respond to the attack and said Iran will also face the consequences.
Gold Capitalize with safe flow flow to start the week and trade above $ 3,260 in the early European session.
EUR/USD Failed to gather bullish momentum on Friday and ended the day that was almost unchanged. The pair holds the ground and traces a narrow channel above 1.1300.
GBP/USD Moves up and down on a tight channel slightly less than 1.3300 after closing in negative territory last week.
USD/JPY Losses were posted on Friday but gained about 1% for the week. The pair continued to correct less than Monday and was last seen defeated by more than 0.4% near 144.30.
Fed faqs
The US financial policy is shaped by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability and promote full work. Its main tool to achieve these goals is by organizing interest rates. When prices rise rapidly and inflation is above the Fed's 2% target, it increases interest rates, increasing borrowing costs throughout the economy. This results in a stronger US dollar (USD) because it makes the US more attractive for international investors to park their money. When inflation falls below 2% or the unemployment rate is too high, the Fed may lower interest rates to encourage borrowing, with a greenback weight.
The Federal Reserve (FED) holds eight policy meetings a year, in which the Federal Open Market Committee (FOMC) assesses economic conditions and makes financial policy decisions. The FOMC was attended by twelve Fed officials-the seven members of the Board of Managers, the President of the Federal Reserve Bank of New York, and four of the remaining eleven regional reserve bank presidents, which served a one-year term on a spinning basis.
In extreme situations, the Federal Reserve can make a policy named EASING (QE). QE is the process by which the Fed greatly increases the flow of credit to a stuck financial system. This is a policy proposal that is not standard used during crises or when inflation is very low. This was the weapon of fed selection during the great financial crisis in 2008. It involves printing the Fed more dollars and using them to buy high -grade high -grade bonds from financial institutions. QE usually weakens the US dollar.
The quantity of tightening (QT) is the Reverse process of QE, where the Federal Reserve stops buying bonds from financial institutions and does not re -consist of the bonds from its bonds, to buy new bonds. This is usually positive for the US dollar value.
