Overview

• The US economy contracted by 0.3% in Q1 2025, with a 41.3% surge in pre-tariff imports impacting growth expectations.
• The dollar posted its largest monthly decline in 2½ years through April but has since rebounded modestly against major currencies.
• Traders now anticipate the Federal Reserve will begin cutting rates in June, scaling back expectations of deeper cuts this year.
• President Trump hinted at potential trade deals with India, South Korea, Japan, and China, though no official talks with China are currently underway.
• The Bank of Japan is expected to hold its policy steady at its upcoming meeting, with focus on its economic outlook and currency strategy.