The U.S. dollar rose decisively Thursday, climbing past the key 100 level for the first time in two weeks, boosted by robust U.S. ISM manufacturing data and strong tech earnings. Treasury yields rebounded from earlier lows after Treasury Secretary Scott Bessent reported meaningful progress in U.S.-China tariff negotiations and hinted at room for potential Fed rate cuts. President Trump's optimistic comments on trade and tax reforms further supported investor sentiment, pushing the S&P 500 up 1.09%.

Yen Plunges Amid Improving Risk Appetite

USD/JPY surged 1.80%, recording its sharpest daily gain this year, propelled by substantial short-covering and reduced expectations for near-term Bank of Japan rate hikes. The pair cleared key resistance at 144 and 145.19, targeting next resistances at 146.55 and 148.27. EUR/JPY also rallied strongly, signaling improved global risk sentiment ahead of Japan's employment data.

EUR/USD Extends Decline on Dollar Strength

EUR/USD fell for a third consecutive day, approaching critical support near 1.1241, pressured by persistent dollar strength and lingering economic uncertainty in the Eurozone amid global trade risks.

Sterling Weakens Amid Economic Concerns

GBP/USD declined 0.38%, pressured by data showing British factory exports contracting at the fastest pace in nearly five years. Market participants increasingly expect a 25 bps rate cut by the Bank of England at its May 8 meeting.

Yields Rise, Commodities Mixed

U.S. Treasury yields rose by 5-8 basis points across the curve; the 2s-10s spread narrowed slightly (+16.5bps). Oil gained around 0.7% ahead of next week's OPEC meeting. Gold fell notably by 1.78%, pressured by the strong dollar and improved risk appetite, while copper edged up modestly (+0.48%).

Currencies at close: EUR/USD -0.40%, USD/JPY +1.80%, GBP/USD -0.38%, AUD/USD -0.30%, Dollar Index +0.77%.