2025.05.0809:07:00UTC+00U.S. Dollar Rises Amid U.S. Trade Deal Optimism

The U.S. dollar strengthened against other major currencies in the European session on Thursday, after U.S. President Donald Trump said he would announce "a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY," without giving further details.

The news conference in the Oval Office is scheduled for 10 a.m. Washington time. The Wall Street Journal and the New York Times reported that Trump is likely to announce a framework of a trade deal with the U.K.

Meanwhile, days before representatives of the U.S. and China are set to meet in Switzerland this weekend for talks, Trump said that the U.S. is no longer facing massive trade losses and he is unwilling to lower tariffs to get China to the table.

U.S. Treasury Secretary Scott Bessent said that talks with China on Saturday are a beginning for talks, not advanced discussions.

Meanwhile, the European Union is set to impose retaliatory tariffs on Boeing jets, escalating trade tensions with the U.S.

The duties would be part of an EU plan to hit about ?100 billion ($114 billion) in U.S. goods with additional tariffs if trade talks fail, according to a Bloomberg report.

In economic releases, U.S. reports on initial jobless claims and labor productivity may garner investor attention later in the day.

Meanwhile, the U.S. Federal Reserve left interest rates unchanged and also warned of increasing risks of higher unemployment and higher inflation.

In the European trading today, the U.S. dollar rose to a 1-week high of 1.1271 against the euro and a 2-day high of 1.3267 against the pound, from early lows of 1.1336 and 1.3357, respectively. The greenback may test resistance around 1.09 against the euro and 1.31 against the pound.

Against the yen and the Swiss franc, the greenback advanced to 3-day highs of 144.49 and 0.8292 from early lows of 143.45 and 0.8224, respectively. If the greenback extends its uptrend, it is likely to find resistance around 145.00 against the yen and 0.84 against the franc.

Against the Australia and the New Zealand dollars, the greenback climbed to 6-day highs of 0.6403 and 0.5918 from early lows of 0.6465 and 0.5975, respectively. On the upside, 0.62 against the aussie and 0.56 against the kiwi are seen as the next resistance levels for the greenback.

The greenback advanced to a 10-day high of 1.3883 against the Canadian dollar, from an early low of 1.3813. The next possible upside target for the greenback is seen around the 1.40 region.

Looking ahead, the Bank of England will announce its monetary policy decision at 7:00 am ET. The central bank is expected to lower its key interest rate by a quarter percentage point later in the session amid fears of U.S. tariffs hitting domestic growth.

At 9:15 am ET, the Bank of England (BOE) Governor Andrew Bailey will conduct a press conference after the monetary policy announcement.

In the New York session, U.S. weekly jobless claims data, wholesale trade sales data for March and U.S. consumer inflation expectations for April are slated for release.