| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | Factory Orders s.a. (MoM) | February | -5.5% | 3.5% | 0.0% |
| 08:30 | United Kingdom | PMI Construction | March | 44.6 | 46 | 46.4 |
USD traded mixed against other major currencies in the European session on Friday, as investors digested China's retaliation news while awaiting the U.S. March employment report and remarks from Federal Reserve’s chairman Jerome Powell later in the day.
The U.S. currency advanced versus AUD, CAD, and GBP, fell versus CHF and JPY, and changed little versus EUR.
The U.S. Dollar Index (DXY), which measures the U.S. currency's value relative to a basket of foreign currencies, slipped 0.03% from its previous close to 102.04.
China's State Council Tariff Commission stated today that, in response to the U.S. April 2 announcement of "reciprocal tariffs" on Chinese imports, it would impose an additional 34% levy on all imported goods originating from the United States beginning April 10.
China’s statement added to growing worries about an escalating trade war between the world's biggest economies and its implications for the global economy.
Following China's announcement of the retaliation measures, the markets increased their bets on the Fed’s policy easing this year. They now see 116 basis points of interest rate cuts by the end of 2025. This implies four cuts of 25 basis points and more than a 50% probability of a fifth move.
Later in the day, investors will pay attention to the U.S. March employment report (12:00 GMT) and Fed Chairman Jerome Powell’s speech on the economic outlook at SABEW’s annual conference (15:25 GMT), hoping to get clues on the monetary policy path.