Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: The US dollar traded mixed versus its major peers on Friday but recorded its first monthly gain versus the Japanese yen this year.
What happened: Investors continued to monitor the impact of tariffs, after a federal appeals court reinstated the tariffs imposed by US President Donald Trump after a trade court ordered to block them.
Expectations of an interest rate hike by the Bank of Japan and increased demand for safe-havens supported the yen.
Why it matters: Last week, the Court of International Trade ruled that Trump overstepped his authority in imposing his so-called “Liberation Day” tariffs on trading partners and declared them unconstitutional. The trade court ordered their immediate removal.
The next day, the US Court of Appeals for the Federal Circuit in Washington squashed the trade court’s ruling and reinstated the tariffs.
Meanwhile, the US accused China of violating the deal made to ease trade tensions between the world’s two largest economies.
The US dollar began Friday with some gains due to the agreements to lower tariffs levied on the EU and China. However, uncertainties around the impact of tariffs and trade wars kept investors on tenterhooks. Expectations of tariffs spurring inflation and dampening economic growth exerted pressure on the US dollar.
Data released on Friday showed that US consumer spending rose slightly in April, while inflation eased during the month. Other data releases showed that the US trade deficit in goods shrank in April and weekly jobless claims rose more than expected.
The EUR/USD pair fell around 0.2% to 1.1349 but ended the month with more than 0.2% gains. The USD/JPY forex pair fell around 0.1% to 144.05 on Friday but recorded its first positive month since December 2024.
The US dollar index, which measures the greenback’s performance versus a basket of major peers, rose around 0.2% to 99.33 on Friday.
What to watch: Investors await May’s jobs report, scheduled for release on Friday, to look for any signals related to weakness in the labour market.
Data on manufacturing PMI (1800 UAE Time) and construction spending (1800 UAE Time), due for release today, will also remain in focus. The ISM manufacturing PMI for the US is expected to rise to 49 in May, from 48.7 in April. Construction spending in the US, which declined by 0.5% to an annual rate of $2,196.1 billion in March, is expected to grow by 0.3% in April.
Context: The SGD/USD forex pair gained this morning as investors digested the latest economic data.
Details: Data released on Friday showed Singapore bank loans declined to S$841.9 billion in April, from a record high of S$846.5 billion in the previous month. Lending to businesses fell in April amid a decline in loans for agriculture, manufacturing, general commerce, and mining and quarrying, while lending to consumers showed an increase.
Meanwhile, Singapore’s economy expanded by 3.9% year-over-year in the first quarter, slower than the 5.0% reported in the previous quarter. However, the Ministry of Trade and Industry kept its growth outlook unchanged at between 0.0% and 2.0% for 2025.
Weakness in the US dollar lent support to the SGD/USD forex pair this morning. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.1% to 99.22.
The SGD/USD pair rose around 0.1% to 1.2896 this morning.
What to watch: Investors await the release of economic data on Singapore’s SIPMM manufacturing PMI (1700 UAE Time) today. The Singapore manufacturing PMI declined to 49.6 in April from 50.6 in the previous month to record its first contraction in manufacturing activity after 19 months of growth. The figure is expected to move back to the expansion zone to a reading of 50.5 in May.
Other Markets: European indices closed mostly higher on Friday, with the FTSE 100, DAX 40 and STOXX Europe 600 Index up by 0.64%, 0.27% and 0.14%, respectively, and the CAC 40 down by 0.36%.
Russia and Ukraine are scheduled to hold their second round of peace talks in Turkey’s Istanbul today. The news sent the RUB/USD pair lower in forex trading this morning.
Taiwan’s S&P Global manufacturing PMI climbed to 48.6 in May, from 47.8 in the previous month. However, the region’s manufacturing activity remaining in the contraction zone for the third consecutive month exerted pressure on the TWD/USD forex pair.
Japan’s au Jibun Bank Manufacturing PMI was revised higher to 49.4 in May, versus the preliminary reading of 49.0. The figure coming in higher than the previous month’s 48.7 sent the JPY/USD pair higher in forex trading this morning.
Philippines’ S&P Global manufacturing PMI declined to 50.1 in May, from 53 in the previous month. However, the region’s manufacturing activity remaining in the expansion zone lent support to the PHP/USD forex pair.
Indonesia’s S&P Global manufacturing PMI improved to 47.4 in May, from 46.7 in April. The region’s manufacturing activity remaining in the contraction zone for the second month in a row sent the IDR/USD pair lower in forex trading this morning.
Eurozone’s HCOB manufacturing PMI (1200 UAE Time), 17-year Bond auction (1445 UAE Time), 3-year Bond auction (1445 UAE Time) and 8-year Bond auction (1445 UAE Time), UK’s mortgage approvals (1230 UAE Time), mortgage lending (1230 UAE Time), M4 money supply (1230 UAE Time), net lending to individuals (1230 UAE Time), S&P Global manufacturing PMI (1230 UAE Time) and BoE consumer credit (1230 UAE Time), South Africa’s ABSA manufacturing PMI (1300 UAE Time), Mexico’s foreign exchange reserves (1500 UAE Time), business confidence (1600 UAE Time) and S&P Global manufacturing PMI (1900 UAE Time), Brazil’s S&P Global manufacturing PMI (1700 UAE Time), France’s 12-month BTF auction (1700 UAE Time), 3-month BTF auction (1700 UAE Time) and 6-month BTF auction (1700 UAE Time), Canada’s S&P Global manufacturing PMI (1730 UAE Time), as well as US S&P Global manufacturing PMI (1745 UAE Time), ISM manufacturing new orders (1800 UAE Time), ISM manufacturing employment (1800 UAE Time), ISM manufacturing prices (1800 UAE Time), 3-month Bill auction (1930 UAE Time) and 6-month Bill auction (1930 UAE Time).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
