The Eurodollar fell after the Fed paused interest rates at 4.5% and Fed Chair Powell signaled that the central bank is in no hurry to cut interest rates, due to inflation risks.
The British pound hit a 3-week low as the Bank of England cut interest rates by 25 basis points. On Thursday, President Trump announced a US-UK signed a trade deal removing some and cutting other tariffs, marking the first agreement since the trade war began.
The USD/JPY climbed as risk sentiment improved and investors moved away from the safe-haven yen.
Gold prices rose to a two-week peak but then dropped after the US-UK trade deal and the announcement that the US and China are to begin talks over trade on May 10th. Meanwhile, the conflict between India and Pakistan escalated, although President Trump brokered a ceasefire between the two on Saturday.
U.S. stock markets were slightly lower amid hopes that a damaging trade war could be averted by trade agreements, while tech stocks Palantir and AMD posted better-than-expected earnings results.
Crude oil prices jumped to a ten-day high on optimism that the US and China could agree to cancel or reduce existing tariffs in their meeting over the weekend.