Magna Financial Market Report – Wednesday 23rd April 2025
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• Dollar recovers on trade talk momentum
• Key PMIs to guide next market move
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RECAP
Investor confidence returned yesterday, driving a sharp rebound in markets that offset the prior session’s steep declines. The dollar also clawed back some of its earlier losses, helped by a shift in tone from the White House.
One catalyst for the improved mood was Scott Bessent’s outlook on U.S.-China relations. He argued that the current trade standoff is unsustainable and predicted a likely de-escalation. Echoing that sentiment, President Trump hinted at a potential easing of tariffs, stating that he would treat China “very nicely” if a deal were struck.
The dollar received an additional boost as Trump reversed course on his earlier comments, now saying he does not intend to fire Federal Reserve Chair Jerome Powell—a reassurance that helped soothe investor nerves.
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OUR SUMMARY
The U.S. dollar found some overnight relief, bolstered by a combination of diplomatic developments and improved market sentiment. Reports indicate the White House is nearing trade agreements with Japan and India, while discussions with the UK are also progressing—factors that have added support to the greenback. This, in turn, has contributed to visible softness in the euro.
Looking ahead, attention turns to the release of PMI data from the EU, UK, and U.S. later today. Given the sensitivity of the U.S. economy to trade tensions, the American figures are expected to be a focal point for traders. Market participants are closely watching for signs of economic resilience, which would be necessary to sustain the dollar’s recent gains.
Some analysts note that Monday’s market moves were likely amplified by thin trading volumes, and that yesterday’s rebound could be a sign of broader stabilization. Technical signals and positioning on trading desks have sparked speculation that a dollar rebound may be forming—but confirmation will depend heavily on how today’s economic data unfolds.
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HOW WE CAN HELP
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Get in touch with Osman Hanif today on +44 (0) 20 3371 9200 or email osman@magnafinancial.com
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