Here is what you need to know on Friday, May 5:
Investors remain on edge on the last trading day of the week as they keep a close eye on the performance of regional bank stocks in the US while awaiting the April jobs report. The European economic docket will feature Retail Sales data for April and Statistics Canada will release the labor market data later in the day. With the Federal Reserve's (Fed) blackout period ending on Thursday, comments from policymakers will be watched by market participants as well.
Safe-haven flows dominated the financial markets on Thursday, helping the US Dollar erase some of the losses it suffered in the Fed aftermath. PacWest Bancorp shares hit a record low after the opening bell on Thursday after the lender announced that it was in talks with potential partners about strategic asset sales. Meanwhile, the Financial Times reported that Western Alliance was also exploring similar options, triggering a selloff in other regional bank stocks as well. Later in the day, Western Alliance shares rebounded after the bank denied the report, calling it 'shameful'. Early Friday, US stock index futures are up between 0.2% and 0.4%.
Nonfarm Payrolls (NFP) in the US are forecast to rise by 179,000 in April following the 236,000 increase recorded in March. The Unemployment Rate is expected to remain unchanged at 3.5% and the annual wage inflation is seen holding steady at 4.2%.
US Nonfarm Payrolls Bank Preview: Smaller, but still positive change in employment.
EUR/USD declined below 1.1000 on Thursday but managed to stage a rebound. The European Central Bank (ECB) raised its key rates by 25 basis points as expected. During the press conference, ECB President Christine Lagarde clarified that they were not going to pause the policy tightening, adding that they had "more ground to cover." Although Lagarde's hawkish comments helped the Euro find demand, the risk-averse market environment limited the pair's upside. In the early European morning on Friday, EUR/USD was trading modestly higher on the day slightly below 1.1050. Meanwhile, the data from Germany showed that Factory Orders slumped by 10.7% on a monthly basis in March, compared to the market expectation for a decrease of 2.2%.
GBP/USD closed modestly higher on Thursday as the sharp decline seen in EUR/GBP helped Pound Sterling stay resilient against the USD. The pair continues to stretch higher early Friday and was last seen trading at its highest level in nearly a year above 1.2600.
USD/JPY fell for the third straight day on Thursday before stabilizing slightly above 134.00 early Friday. Earlier in the day, a magnitude 6.3 earthquake hit Japan's Ishikawa Prefecture. This development, however, doesn't seem to be having an impact on the pair's action.
Gold shined as the go-to safe-haven asset on Thursday and climbed to $2,060 during the American trading hours. XAU/USD retreated below $2,050 early Friday but clings to impressive weekly gains.
US April Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises.
Bank of Canada (BoC) Governor Tiff Macklem said in a prepared speech at the Toronto Region Board of Trade that if they start to see signs that inflation is likely to get stuck materially above their 2% target, they are prepared to raise interest rates further. These hawkish comments and a late rebound seen in crude oil prices helped the CAD outperform the USD on Thursday and USD/CAD lost more than 100 pips. The pair trades in negative territory near 1.3500 early Friday. The Unemployment Rate in Canada is forecast to tick up to 5.1% in April from 5% in March with a +20K in Net Change in Employment.
Bitcoin closed modestly lower on Thursday but started to edge higher early Friday. BTC/USD was last seen rising more than 1% on the day near $29,200. Ethereum retreated on Thursday but returned to the $1,900 area ahead of the weekend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD deflates to three-day lows around 1.1130
The euro remains under heavy pressure on Friday, with EUR/USD retreating toward the 1.1130 level to hit new three-day troughs. Despite a weaker reading in the U-Mich index in May, the US Dollar found support as inflation expectations ticked higher.
GBP/USD slips back to 1.3250 on USD-buying
GBP/USD recedes to the mid-1.3200s on Friday session, as the Greenback regains ground against the broadeer risk-linked universe. Supporting the upside in the US Dollar comes a rise in US consumer inflation expectations, according to the latest data from the U-Mich survey.
Gold looks depressed below $3,200
Gold reversed course on Friday, falling sharply below the $3,200 mark after Thursday’s strong rally. The retreat came as a resurgent US Dollar and easing geopolitical tensions weighed on demand for the safe-haven metal. Furthermore, XAU/USD remained under pressure and is on track to log its biggest weekly loss of the year.
Is Ethereum's comeback real?
Ethereum price hovers above $2,500 on Friday after soaring nearly 100% since early April's bottom. The ETH Pectra upgrade has boosted over 11,000 EIP-7702 authorizations in a week, indicating healthy uptake by wallets and dApps.
Trump’s Middle East dealmaking blitz: What does it mean for investors?
President Donald Trump’s May 2025 Middle East visit has unleashed a flurry of mega-deals, aimed at deepening U.S. trade ties, correcting trade imbalances, and reinforcing America’s leadership in defense and technology exports.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.