On the heels of yesterday's report showing a surprise dip by U.S. consumer prices, the Labor Department released a separate report on Friday showing U.S. producer prices also unexpectedly decreased in the month of March. The Labor Department said its producer price index for final demand fell by 0.4 percent in March after inching up by a revised 0.1 percent in February.

The euro strengthened against other major currencies in the European session on Friday, as the investor sentiment improved after the EU said it would suspend its planned countermeasures to Trump's tariffs for 90 days.

The U.S. dollar weakened against other major currencies in the European session on Friday amid ongoing worries about the U.S. and worldwide economies.

The UK economy expanded at a solid pace in February with increases in all main sectors but recent trade tariffs announced by the US administration cast shadow over recovery prospects. Real gross domestic product grew 0.5 percent from the previous month following a nil growth in January, data from the Office for National Statistics revealed Friday. GDP was expected to climb 0.1 percent.

Monthly GDP estimates, industrial production and foreign trade from the UK and final inflation from Germany are the top economic news due on Friday. At 2.00 am ET, the Office for National Statistics releases UK monthly GDP, industrial output and foreign trade figures. The economy is forecast to grow 0.1 percent month-on-month in February, offsetting a 0.1 percent fall in January.

A report released by the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits crept slightly higher in the week ended April 5th. The Labor Department said initial jobless claims inched up to 223,000, an increase of 4,000 from the previous week's unrevised level of 219,000. The uptick by initial jobless claims came in line economist estimates.

The Labor Department released a report on Thursday unexpectedly showing a slight decrease by U.S. consumer prices in the month of March. The report said the consumer price index edged down by 0.1 percent in March after rising by 0.2 percent in February. Economists had expected consumer prices to inch up by 0.1 percent.

The Philippine central bank resumed its policy easing on Thursday, by cutting the rates by a quarter-point to address the challenges posed by trade tariffs. The Monetary Board of the Bangko Sentral ng Pilipinas decided to reduce the Target Reverse Repurchase rate by 25 basis points to 5.50 percent. The interest rates on the overnight deposit and lending facilities were accordingly reduced.

The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major counterparts in the Asian session on Thursday amid increased risk-on mood by the investors, with sharp gains across all markets in the region after U.S. President Donald Trump announced a 90-day pause on new "reciprocal tariffs" on most countries to allow for negotiations. However, Trump excluded China from the pause.

The UK housing market conditions weakened in March as demand faded following the end of stamp duty holiday amid rising concerns about economic outlook, survey data showed on Thursday. New buyer demand turned negative and hit the lowest since September 2023, the Residential Market Survey from the Royal Institution of Chartered Surveyors showed on Thursday.

China consumer prices declined for the second consecutive month in March amid trade tariffs set to increase supply and exacerbate downward pressure on prices. Consumer prices dropped unexpectedly by 0.1 percent on a yearly basis, following the 0.7 percent fall in February, the National Bureau of Statistics reported Thursday. Prices were expected to remain flat in March.

Due to high uncertainty about the net effect of an array of government policies on the economic outlook, the minutes of the Federal Reserve's latest monetary policy revealed officials believe it remains appropriate to take a "cautious approach" to future interest rate decisions.

Wholesale inventories in the U.S. increased in line with economist estimates in the month of February, according to a report released by the Commerce Department on Wednesday. The Commerce Department said wholesale inventories rose by 0.3 percent in February, matching the preliminary estimate as well as economist expectations. Wholesale inventories climbed by 0.8 percent in January.

The Reserve Bank of India cut its key policy rates for the second straight meeting and also shifted its monetary policy stance to accommodative as trade tariffs pose risks to the outlook for both inflation and growth. At the first policy meeting of the financial year, the Monetary Policy Committee, led by RBI Governor Sanjay Malhotra, unanimously decided to cut the policy repo rate.

The U.S. dollar weakened against other major currencies in the European session on Wednesday, amid speculation that the U.S. Federal Reserve may need to speed up rate cuts and also on fears of a potential U.S. recession.

The safe-haven yen strengthened against other major currencies in the Asian session on Wednesday amid increased risk-off mood by the investors, as the latest set of U.S. tariffs, including a massive 104 percent levy on Chinese imports, take effect today, leaving investors worried about the impact on inflation, interest rates and global growth. Additionally, the traders expect the Bank of Japan to raise its interest rate in 2025.

The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Wednesday, as Asian stock markets traded lower with steep losses in Japan, Singapore and Taiwan as traders remain concerned about rising tensions between the U.S. and China amid the new reciprocal tariffs on imports into the U.S. The steeper-than-expected tariffs ignited fears over an economic recession globally.

The Reserve Bank of New Zealand reduced its benchmark rate by a quarter-point, as expected on Wednesday, and hinted at further easing as recent increases in trade tariffs pose downside risks to economic outlook. The Monetary Policy Committee, led by acting governor Christian Hawkesby, decided to cut the Official Cash Rate by 25 basis points to 3.50 percent, which was the lowest since October 2022.

The antipodean currencies such as the Australia and the New Zealand dollars strengthened against their major currencies in the European session on Tuesday, as some calm returned to markets even as trade tensions escalated with Beijing saying that the U.S. threat to escalate tariffs against China is a 'mistake on top of a mistake' and amounts to blackmail.

Australia consumer sentiment deteriorated to a six-month low in April on escalating tariff war, survey data from Westpac showed Tuesday. The Westpac-Melbourne Institute Consumer Sentiment Index fell to 90.1 in April from 95.9 in March. The 'family finances vs a year ago' sub-index registered a sharp 8.5 percent fall to 70.2 in April.

A larger-than expected addition to non-farm payrolls curtailed the dollar's losses in a week marked by global chaos on the trade front and weak economic data from the U.S.

Germany's exports grew the most in four months in February as U.S. importers frontloaded orders ahead of the imposition of new tariffs by the Trump administration, while industrial production declined more than expected in February indicating more challenges ahead for the economy. Exports grew 1.8 percent month-on-month in February, following stagnation in January, Destatis reported.

Euro area investor confidence deteriorated to the lowest level in one-and-a-half years in April as expectations logged the second sharpest fall on record, results of the monthly survey by the behavioral research institute Sentix showed on Monday. The investor confidence index fell more-than-expected to -19.5 in April from -2.9 in March. The decline was much severe than the expected slump to -8.9.

Eurozone retail sales grew for the first time in five months in February but the pace of growth was weaker than expected, official data revealed Monday. Retail trade increased 0.3 percent month-on-month in February, after remaining flat in the previous three months. Although this was the first increase since September, the rate was slower than the forecast of 0.5 percent.

The safe-haven Swiss franc strengthened against other major currencies in the European session on Monday, as European stock markets traded lower after reports suggested the European Union is gearing up to impose retaliatory tariffs on the United States.