Forex News Timeline

Friday, May 30, 2025

The concept of ‘US exceptionalism’ covers many specific themes. For academics it may have referred to the US’s ability to attract bright minds from around the world and generate cutting edge research.

The concept of ‘US exceptionalism’ covers many specific themes. For academics it may have referred to the US’s ability to attract bright minds from around the world and generate cutting edge research. Combined with the country’s entrepreneurial culture and venture capital infrastructure, this has helped it to spawn and grow most of the world’s largest tech companies. In turn tech has enabled US labour productivity in the US to grow at a faster pace than its peers, Rabobank's FX analyst Jane Foley reports. Creditor countries gain as ‘Sell America’ theme takes hold"In recent years, strong labour productivity has helped the economy defy expectations that growth will slow. Consumption has remained mostly robust with consumer confidence supported by ample job vacancies and, in the pandemic period, by generous fiscal giveaways. For years, the robustness of US growth combined with the credibility of its institutions fed the ‘buy America’ trade with savers from all over the world keen to be involved. That has now changed.""This year has brought periods when US equities, treasuries and the USD have all dropped at the same time illustrating that ‘sell America’ is the dominant theme. Creditor countries have been the beneficiaries. This is evidenced not just in this year’s gains in the JPY and the EUR vs. the USD but also in the rallies in currencies such as the TWD and SGD.  How far the pressure on the USD will extend depends on the extent to which the policies of the current US administration undermine the growth potential of the US and erode the trust of its trading partners and allies.""It also depends on how fast the US’s trading partners can fix their own structural issues. While we still see scope for profit-taking in favour of the USD on a 1-to-3-month view, we now see this as likely to be more modest than our previous forecasts. We continue to see EUR/USD rising to 1.20 around H2 next year and see scope for USD/JPY to reach around 135.00 in that time frame."

CTAs will continue to sell crude and industrial metals (x-copper) in most scenarios for prices by this time next week. In the imminent term, CTA selling activity will continue to weigh on price action into the OPEC meeting, TDS' Senior Commodity Strategist Daniel Ghali notes.

CTAs will continue to sell crude and industrial metals (x-copper) in most scenarios for prices by this time next week. In the imminent term, CTA selling activity will continue to weigh on price action into the OPEC meeting, TDS' Senior Commodity Strategist Daniel Ghali notes. Energy demand remains resilient"While markets will struggle to absorb additional barrels from OPEC+, energy demand remains resilient, US shale production is peaking, Venezuelan export licenses have expired, and geopolitical risks surrounding Iran remain elevated— all of which will likely act as a shock absorber to lower prices for the time being.""Beyond the seasonally strong summer months, however, OPEC exports should rise further and pressure global crude markets without a subsequent disruption to supply. The path to sustainably higher prices remains extremely narrow, and while speculative positioning is bearish, it is not currently vulnerable to a squeeze."

Colombia National Jobless Rate down to 8.8% in April from previous 9.6%

This is one of those moments where Gold markets are offering a gift, TDS' Senior Commodity Strategist Daniel Ghali notes.

This is one of those moments where Gold markets are offering a gift, TDS' Senior Commodity Strategist Daniel Ghali notes. Gold is 'overbought but underowned' in market perception"Aggregate open interest in CME Gold is now approaching extreme lows (425k) that have historically marked lows in Gold prices—despite a compelling macro case for Gold. This underscores our view that Gold is perceived as a crowded trade, but is in fact under-owned. This is particularly surprising amid the ongoing megatheme-Gold's rally is associated with the USD partly losing its store of value function." "Gold's rally isn't about demand, it's about trust. We expect aggregate futures open interest will imminently rise, as a function of market plumbing. CTAs will buy Gold in any scenario this coming week, with continued algo buying activity expected this session (+4% of max size). We expect this flow to persist and in fact to accelerate into next week's NFP report, potentially tallying up to a massive +30% of algos' max size.""With macro funds largely flat in Gold post-liberation day, signs of selling exhaustion from ETF holders, incoming CTA flows, and historically strong forward returns from such low levels of aggregate open interest, prices are likely to be bolstered by positioning alone. Yet another about-face on trade could catalyze the next buying impulse by this summer."

Silver price (XAG/USD) is down almost 1% near the key level of $33.00 during North American trading house on Friday. However, the white metal strives to gain ground as renewed trade tensions between the United States (US) and China are limited the upside in the US Dollar (USD).

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Silver price looks for a temporary support after sliding almost 1% to near $33.00 as trade tensions between the US and China have renewed.Trump accused China for non-compliance of trade agreement.The US PCE inflation cools down in April.Silver price (XAG/USD) is down almost 1% near the key level of $33.00 during North American trading house on Friday. However, the white metal strives to gain ground as renewed trade tensions between the United States (US) and China are limited the upside in the US Dollar (USD).The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, struggles to extend its early recovery move above the immediate resistance of 99.70.Historically, global economic tensions improve demand for safe-haven assets, such as Silver. However, it is struggling to find bids as higher US Dollar makes investment in Silver price an expensive bet for investors.During North American session, US President Donald Trump accused Beijing for non-compliance on the trade agreement in a post on Truth.Social. "The bad news is that China, perhaps not surprisingly to some, has totally violated its agreement with us," Trump wrote.Meanwhile, soft US Personal Consumption Expenditure Price Index (PCE) data for April has weighed some pressure on the Silver. The US core PCE inflation, a Federal Reserve’s (Fed) preferred inflation gauge, rose by 2.5% on year, as expected, slower than 2.7% in March. Precious metals underperform in a low-inflation environment.Silver technical analysisSilver price ranges between $31.65 and $33.70 from over a month. The near-term trend of the white metal is uncertain as it wobbles around the 20-period Exponential Moving Average (EMA), which trades near $32.90.The 14-period Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating a sideways trend.Looking up, the March 28 high of $34.60 will act as key resistance for the metal. On the downside, the April 11 low of $30.90 will be the key support zone.Silver daily chart Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

United States UoM 1-year Consumer Inflation Expectations below expectations (7.3%) in May: Actual (6.6%)

United States Michigan Consumer Expectations Index registered at 47.9 above expectations (46.5) in May

United States UoM 5-year Consumer Inflation Expectation came in at 4.2% below forecasts (4.6%) in May

United States Michigan Consumer Sentiment Index registered at 52.2 above expectations (51) in May

The USD/CHF pair attracts bids after revisiting near the five-week low around 0.8185 during North American trading hours on Friday.

.fxs-related-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-related-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}.fxs-related-module-related-link a{text-decoration:none;color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px}.fxs-related-module-related-link a:hover,.fxs-related-module-related-link:hover,.fxs-related-module-related-link:hover a{color:#e4871b}.fxs-related-module-related-link a:hover{text-decoration:none}@media (min-width:680px){.fxs-related-module-title{font-size:19.2px;line-height:27.2px}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}}USD/CHF finds cushion near 0.8200, Trump’s tariff uncertainty keeps the pair on the backfoot.Federal Appeals court lifts Trump’s tariff ban temporarily.The US core PCE inflation rose at a slower pace of 2.5% on year, as expected.The USD/CHF pair attracts bids after revisiting near the five-week low around 0.8185 during North American trading hours on Friday. The Swiss Franc pair gains ground temporarily as the US Dollar (USD) strives to hold its immediate low, with investors remaining uncertain over the status of United States (US) President Donald Trump’s tariff policy.The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, recovers moderately to near 99.60 after a sharp downside move the previous day.On Thursday, the US Appeals court issued a temporary stay on international trade court’s ruling against Trump’s tariffs on the administration’s appeal. The US lower court accused Donald Trump on Wednesday for abusing the “national emergency” law to fulfil his tariff agenda.During North American trading hours, the US Personal Consumption Expenditure Price Index (PCE) data for April has shown that inflationary pressures have cooled down. The US core PCE inflation, a Federal Reserve’s (Fed) preferred inflation gauge, has grown moderately by 2.5% on year, as expected, compared to the prior release of 2.7%.USD/CHF retreats after facing selling pressure above the 20-day Exponential Moving Average (EMA), which trades around 0.8300.The 14-day Relative Strength Index (RSI) strives to hold the 40.00. A fresh bearish momentum would activate if the RSI falls below that level.The asset could slide towards the April 11 low of 0.8100 and the April 21 low of 0.8040 if it skids below the May 7 low of 0.8186.On the contrary, a recovery move in the pair above the psychological level of 0.8500 will open the door for more upside towards the April 10 high of 0.8580 and the April 8 high of 0.8611.USD/CHF daily chart Related news Slower spending amid a pullback in goods outlays in April US inflation stays stable, but tariff risks remain elevated as US/China talks break down While we await outcomes, it does seem that Trump will not get everything he wanted for long

The Mexican Peso (MXN) is strengthening against the US Dollar (USD) in the early hours of the American session on Friday after the release of soft inflation data in the United States, with the pair remaining vulnerable to broader geopolitical risks. 

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}
USD/MXN falls below the 19.30 psychological level after US PCE inflation softened in April.The Mexican Peso benefits from moderating inflation in the US, adding to US Dollar weakness. Focus shifts to the University of Michigan Consumer Sentiment index as investors look for signs of economic resiliency and consumer confidence.The Mexican Peso (MXN) is strengthening against the US Dollar (USD) in the early hours of the American session on Friday after the release of soft inflation data in the United States, with the pair remaining vulnerable to broader geopolitical risks. At the time of writing, USD/MXN trades below the psychological level of 19.30, with US interest rate expectations and risk sentiment surrounding tariffs continuing to drive price action.US PCE data adds a dovish tone to the Fed’s stanceThe US Personal Consumption Expenditures (PCE) Price Index for April could provide a dovish tilt for the future trajectory of US interest rates. April’s data, released at 12:30 GMT, printed in line with forecasts, with a MoM reading of 0.1%, increasing slightly after remaining unchanged in March. However, the year-over-year (YoY) figure of 2.1% reflected a moderate deceleration from the prior 2.3%. Meanwhile, the core PCE rose 2.5% in April, compared with the 2.7% seen in the prior month.As the Federal Reserve’s (Fed) preferred inflation measure, the report is closely watched by policymakers, investors, and global currency markets. With inflation trends guiding expectations on the future path of interest rates, the data shows that price pressures are easing. In Mexico, the Jobless Rate for April, released at 12:00 GMT, printed at 2.5%, in line with analyst forecasts, despite a rise from 2.2% in March. Employment trends serve as a leading indicator of economic growth.Later in the session, the University of Michigan Consumer Sentiment Index will offer further insight into US household expectations and perceived economic conditions. As another key leading indicator, the sentiment reading could influence risk appetite and global positioning, particularly if it surprises relative to forecasts. Mexican Peso daily digest: USD/MXN extends losses as PCE data eases inflation concernsThe US federal appeals court temporarily halted a federal trade court’s decision to block most of US President Donald Trump’s tariffs on Thursday, after the lower federal court rejected the legal foundation of the proposed blanket tariff.On Thursday, Chicago Fed President Austan Goolsbee said the uncertainty surrounding Trump’s tariff proposals is already having an economic impact, stating: “If people can’t count on consistent policy, then they’re just going to slow down and not act.” Goolsbee added that if tariffs are avoided “by a deal or otherwise,” it could open the door for the Federal Reserve to lower interest rates.The Banxico Minutes from the May Meeting on Thursday showed that most members see downside risks to economic activity; all members flagged concerns over US trade policy uncertainty. This reinforces a dovish bias from the central bank, with more easing potentially on the table.On Wednesday, Banxico’s Quarterly Report revealed that the central bank slashed its 2025 Gross Domestic Product (GDP) growth forecast to 0.1% from 0.6%, citing rising domestic recession risks. Market attention turns to policy calibration amid deteriorating growth outlook.The Minutes from the May Federal Open Committee (FOMC) meeting were released on Wednesday. In the report, Fed officials emphasized increased uncertainty and supported a cautious approach. USD/MXN remains highly sensitive to such data surprises, especially when they carry implications for monetary policy or broader global sentiment. Price action is likely to be reactive, with potential for sharp swings should actual data deviate from expectations.Mexican Peso technical analysis: USD/MXN retreats from Moving Average resistanceUSD/MXN has pulled back below the 19.30 psychological level, after failing to break above the 20-day Simple Moving Average (SMA) at 19.43 on Thursday. The pair is now hovering near the 10-day SMA at 19.30. A definitive break below this level could see renewed selling pressure, with bears targeting the May low of 19.18.The Relative Strength Index (RSI) in the daily chart is currently at 40. The RSI’s downward trajectory supports a slight bearish bias for the pair in the near term. A sustained move below 19.30 could accelerate downside momentum.If the pair manages to recover above the 20-day SMA, prices may test the weekly high, which was reached on Thursday at 19.43. This could open the door for the next barrier of resistance at the April low of 19.47.USD/MXN daily chart Inflation FAQs What is inflation? Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%. What is the Consumer Price Index (CPI)? The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls. What is the impact of inflation on foreign exchange? Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money. How does inflation influence the price of Gold? Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.

United States Chicago PMI registered at 40.5, below expectations (45) in May

Canada's real Gross Domestic Product (GDP) grew by 0.5% on a quarterly basis in the first quarter, Statistics Canada reported on Friday. This reading matched the 0.5% expansion recorded in the last quarter of 2024.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Canada's economy grew at an annual rate of 2.2% in Q1.USD/CAD trades marginally lower on the day below 1.3800.Canada's real Gross Domestic Product (GDP) grew by 0.5% on a quarterly basis in the first quarter, Statistics Canada reported on Friday. This reading matched the 0.5% expansion recorded in the last quarter of 2024.The real GDP expanded at an annual rate of 2.2% in the first quarter, surpassing analysts' estimate for a 1.7% growth."Total exports rose 1.6% in the first quarter of 2025 after increasing 1.7% in the fourth quarter of 2024," the press release read. "In the context of looming tariffs from the United States, exports of passenger vehicles (+16.7%) and industrial machinery, equipment and parts (+12.0%) drove the overall increase in exports in the first quarter of 2025."Market reactionUSD/CAD edges slightly lower following this report and was last seen losing 0.15% on the day at 1.3788. GDP FAQs What is GDP and how is it recorded? A country’s Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter. The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022. Annualized quarterly GDP figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely to last all year – such as happened in the first quarter of 2020 at the outbreak of the covid pandemic, when growth plummeted. How does GDP influence currencies? A higher GDP result is generally positive for a nation’s currency as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attracting higher foreign investment. By the same token, when GDP falls it is usually negative for the currency. When an economy grows people tend to spend more, which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation with the side effect of attracting more capital inflows from global investors, thus helping the local currency appreciate. How does higher GDP impact the price of Gold? When an economy grows and GDP is rising, people tend to spend more which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold versus placing the money in a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for Gold price.

United States Wholesale Inventories came in at 0% below forecasts (0.4%) in April

United States Personal Consumption Expenditures - Price Index (MoM) meets expectations (0.1%) in April

United States Personal Consumption Expenditures - Price Index (YoY) came in at 2.1%, below expectations (2.2%) in April

Canada Gross Domestic Product (MoM) meets forecasts (0.1%) in March

Canada Gross Domestic Product Annualized came in at 2.2%, above expectations (1.7%) in 1Q

United States Goods Trade Balance came in at $-87.62B, above expectations ($-141.5B) in April

United States Personal Spending meets forecasts (0.2%) in April

United States Core Personal Consumption Expenditures - Price Index (MoM) in line with expectations (0.1%) in April

United States Core Personal Consumption Expenditures - Price Index (YoY) meets forecasts (2.5%) in April

United States Personal Income (MoM) came in at 0.8%, above expectations (0.3%) in April

Canada Gross Domestic Product (QoQ) dipped from previous 0.6% to 0.5% in 1Q

In an interview with CNBC on Friday, United States Trade Representative (USTR) Jamieson Greer said that they are concerned with China's non-compliance and added that this situation has to be addressed, per Reuters.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} In an interview with CNBC on Friday, United States Trade Representative (USTR) Jamieson Greer said that they are concerned with China's non-compliance and added that this situation has to be addressed, per Reuters. Key takeaways"We have other tools if the tariff ruling goes the other way as well.""Had emails and texts from foreign officials saying they are just going to keep negotiating with us as before.""We've been focused on monitoring Chinese compliance or in this case non-compliance with the agreement.""We have a standing call with the Indian trade minister every day.""We have meetings next week at the OECD with, with the Malaysians, the Vietnamese, the EU.""When it comes to the trade deficit, China's the biggest problem, but the EU is right behind them."Market reactionThe US Dollar struggles to gather strength following these comments. As of writing, the US Dollar Index was little changed on the day at 99.38. US-China Trade War FAQs What does “trade war” mean? Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. It implies the creation of trade barriers, such as tariffs, which result in counter-barriers, escalating import costs, and hence the cost of living. What is the US-China trade war? An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers on China, claiming unfair commercial practices and intellectual property theft from the Asian giant. China took retaliatory action, imposing tariffs on multiple US goods, such as automobiles and soybeans. Tensions escalated until the two countries signed the US-China Phase One trade deal in January 2020. The agreement required structural reforms and other changes to China’s economic and trade regime and pretended to restore stability and trust between the two nations. However, the Coronavirus pandemic took the focus out of the conflict. Yet, it is worth mentioning that President Joe Biden, who took office after Trump, kept tariffs in place and even added some additional levies. Trade war 2.0 The return of Donald Trump to the White House as the 47th US President has sparked a fresh wave of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China once he returned to office, which he did on January 20, 2025. With Trump back, the US-China trade war is meant to resume where it was left, with tit-for-tat policies affecting the global economic landscape amid disruptions in global supply chains, resulting in a reduction in spending, particularly investment, and directly feeding into the Consumer Price Index inflation.

In a post published on Truth Social on Friday, United States (US) President Donald Trump said that China has violated its agreement with the US.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} In a post published on Truth Social on Friday, United States (US) President Donald Trump said that China has violated its agreement with the US.After explaining how "very high tariffs" made it impossible for China to trade with the US and cause factory shutdowns, President Trump continued:"I made a fast deal with China in order to save them from what I thought was going to be a very bad situation, and I didn’t want to see that happen.""Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!! The bad news is that China, perhaps not surprisingly to some, has totally violated its agreement with us," Trump added.Market reactionThe US Dollar (USD) Index edged slightly lower with the immediate reaction to these remarks. At the time of press, the USD Index was up 0.12% on the day at 99.45. Tariffs FAQs What are tariffs? Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas. What is the difference between taxes and tariffs? Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers. Are tariffs good or bad? There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs. What is US President Donald Trump’s tariff plan? During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), held steady at 2.1% on a yearly basis in May, Destatis' flash estimate showed on Friday. This reading came in line with the market expectation.

Annual inflation in Germany remained unchanged at 2.1% in May as expected.EUR/USD stays in daily range below 1.1350 after the data.Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), held steady at 2.1% on a yearly basis in May, Destatis' flash estimate showed on Friday. This reading came in line with the market expectation.On a monthly basis, the CPI rose 0.1% following the 0.4% increase recorded in April.The Harmonized Index of Consumer Prices in Germany, the European Central Bank's preferred gauge of inflation, rose 2.1% on a yearly basis after rising 2.2% in April. This reading came in above analysts' estimate of 2%.Market reactionThese figures don't seem to be having a noticeable impact on the Euro's valuation. At the time of press, EUR/USD was down 0.25% on the day at 1.1337.

Japanese Yen (JPY) is strong and outperforming all of the G10 currencies, entering Friday’s NA session with a 0.3% gain against the US Dollar (USD), Scotiabank's Chief FX Strategist Shaun Osborne notes.

Japanese Yen (JPY) is strong and outperforming all of the G10 currencies, entering Friday’s NA session with a 0.3% gain against the US Dollar (USD), Scotiabank's Chief FX Strategist Shaun Osborne notes. Longer-term trend for USD/JPY remains bearish"A run of stronger than expected (Tokyo) CPI, industrial production, and retail sales data was responsible for the JPY’s Asian session gains as market participants considered their implications for the next BoJ policy meeting on June 17." "The Tokyo CPI print was most important, printing 3.6% y/y to reach its highest level since (the post-pandemic surge) of late 2022/early 2023. Japan’s government bond market took the release in stride, and a JGB auction of two year notes attracted its highest bid-to-cover ratio in four months." "The longer-term trend for USD/JPY remains bearish however near-term technicals are neutral as we await a break of the recent range roughly bound between 140 and the mid-148 area."

India Federal Fiscal Deficit, INR climbed from previous 13468.52B to 15772.7B in March

Pound Sterling (GBP) is soft, trading down a modest 0.1% against the US Dollar (USD) and a mid-performer among the G10, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Pound Sterling (GBP) is soft, trading down a modest 0.1% against the US Dollar (USD) and a mid-performer among the G10, Scotiabank's Chief FX Strategist Shaun Osborne notes. Multi-month trend is bullish"GBP appears to be consolidating following Monday’s push to a fresh multi-year high, lacking any meaningful domestic catalyst in a relatively quiet week, data wise. Next week’s calendar also offers little, with third tier data and a few scheduled BoE speakers." "This week’s BoE speeches were generally cautious on growth with mild-concern about inflation as Gov. Bailey said that ‘we have been predicting this hump in inflation for a long time’ and spoke to concerns about second round effects." "The multi-month trend is bullish and GBP/USD has continued its push to fresh multi-year highs, nearly reaching 1.36 on Monday. Momentum is also bullish, with an RSI close to 60 leaving ample room for further gains ahead of the overbought threshold at 70."

Germany Consumer Price Index (YoY) in line with expectations (2.1%) in May

Mexico Jobless Rate s.a remains at 2.6% in April

Brazil Gross Domestic Product (YoY) came in at 2.9% below forecasts (3.2%) in 1Q

South Africa Trade Balance (in Rands) dipped from previous 24.77B to 14.08B in April

Mexico Jobless Rate increased to 2.5% in April from previous 2.2%

Germany Harmonized Index of Consumer Prices (MoM) registered at 0.2% above expectations (0.1%) in May

Germany Harmonized Index of Consumer Prices (YoY) came in at 2.1%, above forecasts (2%) in May

Brazil Gross Domestic Product (QoQ) in line with forecasts (1.4%) in 1Q

Germany Consumer Price Index (MoM) meets forecasts (0.1%) in May

The price of Gold briefly fell below the USD 3,250 per troy ounce mark on Thursday after it was announced that a US court had declared most of the tariffs imposed by US President Trump to be illegal, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.

The price of Gold briefly fell below the USD 3,250 per troy ounce mark on Thursday after it was announced that a US court had declared most of the tariffs imposed by US President Trump to be illegal, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes. Gold can benefit continuing high demand for safe havens"It pointed out that only the US Congress could regulate trade with other countries. However, the precious metal recovered quickly as it was unclear whether the tariffs would be suspended immediately. In the evening, an appeals court ruled that the court ruling would be paused for the time being and that the tariffs would therefore remain in effect.""Furthermore, the court ruling primarily concerned reciprocal tariffs, but not sectoral tariffs on aluminium and steel, for example. The US government could therefore focus more on these instead of country-specific tariffs." "The trade conflict is therefore far from over, which means that the economic outlook remains gloomy and expectations of interest rate cuts are likely to remain strong. In addition to the continuing high demand for safe havens, Gold could also benefit from this."

The Canadian Dollar (CAD) is little changed on the session. Broader market sentiment is relatively neutral, with European stocks a little firmer while US equity futures are currently trading lower.

The Canadian Dollar (CAD) is little changed on the session. Broader market sentiment is relatively neutral, with European stocks a little firmer while US equity futures are currently trading lower. Our fair value estimate for USD/CAD has edged a little lower into the end of the week (1.3839) as factors driving the estimate edge marginally more supportive for the CAD. With markets overall fairly calm and spot trading near its estimated equilibrium, narrow range trading may extend today, Scotiabank's Chief FX Strategist Shaun Osborne notes. GDP in focus ahead of BoC"This morning’s Canadian GDP data will likely reflect sluggish growth for March and Q1 overall. Growth headwinds remain unabated from US tariff developments while wildfires in Alberta may also start to impinge on oil production. Very soft data today may bolster market expectations for a rate cut from the Bank of Canada next week. Swaps are currently pricing in only 6-7bps of easing risk." "USD/CAD is tracking a little higher on the week overall but net USD gains are not enough to challenge the bearish implications of last week’s net USD decline (bearish “engulfing” line on the week chart). Also, the net drop in the USD seen in yesterday’s session overall formed a daily outside range reversal patten on the chart. Trend momentum signals remain bearish on the daily and weekly studies but have eased to neutral on the intraday oscillator." "That may mean a little more range trading for funds in the short run but the broader, technical pointers remain tilted to the downside. That should mean limited scope for USD gains (resistance at 1.3850/60) and a little more weakness in the USD in the days ahead. Support is 1.3785 and 1.3750."

According to figures published on Wednesday, the number of certificates in circulation (TNAC) at the end of 2024 stood at 1.148 billion, which was actually around 3% higher than in the previous year, Commerzbank's commodity analyst Barbara Lambrecht notes.

According to figures published on Wednesday, the number of certificates in circulation (TNAC) at the end of 2024 stood at 1.148 billion, which was actually around 3% higher than in the previous year, Commerzbank's commodity analyst Barbara Lambrecht notes. More allowances shifted to market stability reserve"This is primarily attributable to the additional supply of certificates to finance the RePowerEU plan. As a result, at 276 million, more emission allowances must now be transferred to the market stability reserve than in the previous year, when the figure was 266 million." "This will reduce the auction supply in the 12 months from September onwards. Nevertheless, according to BNEF, supply is likely to exceed demand again in the current year due to the front-loaded auctions. This is slowing down the recovery of carbon prices, which, at EUR 70 per ton, are nevertheless around EUR 10 higher than at the beginning of April.""However, long-term targets are the key factor for longer-term price developments. In this sense, the upcoming discussion on the interim target for 2040 is of great interest. The EU Commission intends to present a proposal on this matter on 2 July, which will include more flexibility for its proposed target of a 90% reduction in greenhouse gas emissions compared to 1990."

Yesterday's weekly US inventory report halted the slide on the oil market, Commerzbank's commodity analyst Barbara Lambrecht notes.

Yesterday's weekly US inventory report halted the slide on the oil market, Commerzbank's commodity analyst Barbara Lambrecht notes. US crude stocks drop, gap to 5-year average widens"US crude oil inventories fell surprisingly sharply, and the gap to the five-year average widened again to 6%. However, the most notable development was the significant increase in US gasoline demand to almost 9.5 million barrels per day, a good 800,000 barrels more than in the previous week." "The fact that demand rose so sharply even before the start of the summer driving season, which began last weekend with Memorial Day, is also attributable to the method of recording, which is based on how much gasoline is delivered from US refineries to petrol stations." "Petrol station operators were obviously very optimistic. After all, the US Automobile Association (AAA) had also predicted a new travel record for the Memorial Day weekend."

The US Dollar is clinging to minor gains on Friday, with price action wavering within previous day’s ranges and the 4-hour RSI flat around the 50 level, which signals a lack of clear bias.The Dollar whipsawed on Thursday before closing the day with a 0.2% decline, as a federal court paused a previou

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}The US Dollar keeps moving within a tight range above 1.3800 ahead of the US PCE Inflation release.Trade uncertainty and growing concerns about US debt are limiting the US Dollar's rallies.In Canada, GDP data is expected to show that the economy lost steam in the first quarter.The US Dollar is clinging to minor gains on Friday, with price action wavering within previous day’s ranges and the 4-hour RSI flat around the 50 level, which signals a lack of clear bias.

The Dollar whipsawed on Thursday before closing the day with a 0.2% decline, as a federal court paused a previous sentence from a lower court blocking most of the trade tariffs introduced by the US President Trump on April 2.

The decision dampened market enthusiasm for a normalisation of global trade and revived fears that higher prices for imported goods will boost inflation and slow down growth, leading to stagflation and posing a serious challenge for the Fed.Trade uncertainty and debt woes are weighing on the USDRecent data underscored those concerns. The US GDP confirmed that the economy contracted in the first quarter, and weekly Jobless Claims increased against expectations. This, coupled with a sweeping tax bill that is expected to boost an already high US debt, is expected to weigh on the USD in the mid-term.

The focus today is on the US PCE Prices Index release, which is expected to show some cooling in yearly inflation, 2.2% from 2.3% in March, while the core reading is seen easing to 2.5% from the previous 2.6%. Monthly inflation is seen picking up 0.1%, in both cases, after a flat reading in March.  
In Canada, the focus will be on the first quarter’s GDP inflation figures, which are expected to show a slowdown to a 1.7% annualized growth from the previous quarter’s 2.6% reading. Canadian Dollar PRICE Today The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.32% 0.10% -0.12% 0.01% 0.34% 0.10% 0.15% EUR -0.32% -0.20% -0.47% -0.31% 0.06% 0.10% -0.17% GBP -0.10% 0.20% -0.27% -0.10% 0.27% 0.13% 0.04% JPY 0.12% 0.47% 0.27% 0.14% 0.56% 0.38% 0.34% CAD -0.01% 0.31% 0.10% -0.14% 0.42% 0.21% 0.14% AUD -0.34% -0.06% -0.27% -0.56% -0.42% 0.04% -0.23% NZD -0.10% -0.10% -0.13% -0.38% -0.21% -0.04% -0.27% CHF -0.15% 0.17% -0.04% -0.34% -0.14% 0.23% 0.27% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

Euro (EUR) is soft, down 0.3% against the US Dollar (USD) and underperforming most of the G10 currencies in generally quiet trade, Scotiabank's Chief FX Strategist Shaun Osborne notes, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Euro (EUR) is soft, down 0.3% against the US Dollar (USD) and underperforming most of the G10 currencies in generally quiet trade, Scotiabank's Chief FX Strategist Shaun Osborne notes, Scotiabank's Chief FX Strategist Shaun Osborne notes. ECB's 25bpt rate cut next week’s is fully priced "The currency remains range bound heading into next week’s ECB meeting, as market participants look through a widely anticipated and fully priced 25bpt rate cut and hope for medium-term policy guidance in the form of fresh economic projections." "Markets are pricing in at least one more 25bpt rate cut by year end and policymakers maintained a dovish bias without providing an ultimate landing target for rates. In terms of data, German state-level inflation figures were mixed. All eyes are on Tuesday’s release of preliminary euro area CPI data for the month of May." "The multi-month trend remains bullish, given the sequence of higher highs and higher lows. Support has been observed at the 50 day MA (1.1196), and the recent range has been bound between support in the mid-1.10s and resistance in the upper-1.15s. Momentum is modestly bullish, and the short-term range is roughly bound between support below 1.1250 and resistance above 1.14."

Tariffs were off Tuesday night and were back on again, at least for now, Thursday afternoon after a Federal Appeals Court allowed the president’s tariff plans to remain in place pending further rulings, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Tariffs were off Tuesday night and were back on again, at least for now, Thursday afternoon after a Federal Appeals Court allowed the president’s tariff plans to remain in place pending further rulings, Scotiabank's Chief FX Strategist Shaun Osborne notes. USD firms modestly but investors fret over trade"Markets shrugged off the developments, with an appeal from the administration expected—though perhaps not that quickly. Tariff uncertainty continues and while markets were unfazed by the news, the erratic developments in tariff policy means uncertainty for business remains particularly acute and will surely become more apparent in US hard data soon. The USD has advanced a little in overnight trade but concerns that the USD’s prospects are being damaged by the administration’s tariff and fiscal policies are rising while the erosion of free trade and questions over the Fed’s independence are adding to negative USD sentiment." "A new concern for investors that has emerged this week is a provision in President Trump’s tax bill that would increase taxes on passive income for individuals and investors based in countries where tax policies on digital services are deemed 'discriminatory'. The measure could represent another headwind for foreign capital investment flows into the US and affect the USD31tn already invested in US assets by foreigners. Needless to say, reduced capital inflows or outflows even from US asset markets as a result of this provision could affect the USD longer run performance." "Uncertainty over the tax may limit the USD’s near-term potential to stabilize or improve. DXY trend line resistance looks solid around 100.25 which may be the ceiling for any gains in the short run. There are a number of US data reports this morning, including Personal Income and Spending plus PCE data, Wholesale Inventories, the Chicago PMI and (final) U. Michigan Sentiment data. China releases PMI data this evening."

India Bank Loan Growth declined to 9.8% in May 12 from previous 9.9%

India FX Reserves, USD up to $692.72B in May 19 from previous $685.73B

US Dollar (USD) is likely to trade in a range of 7.1800/7.2000 against Chinese Yuan (CNH). In the longer run, for now, USD is likely to trade in a range between 7.1800 and 7.2300, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

US Dollar (USD) is likely to trade in a range of 7.1800/7.2000 against Chinese Yuan (CNH). In the longer run, for now, USD is likely to trade in a range between 7.1800 and 7.2300, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. USD is likely to trade in a range24-HOUR VIEW: "USD rose early yesterday. When it was at 7.2025, we noted that 'The increase in momentum is likely to lead to further advance, potentially to 7.2130.' However, USD rose less than expected to 7.2076 and then fell, reaching a low of 7.1828 in the NY session. The price movements are likely part of a range trading phase, expected to be between 7.1800 and 7.2000." 1-3 WEEKS VIEW: "We revised our USD view to neutral view yesterday (29 May, spot at 7.2025), indicating that 'the recent downward bias has faded.' We added, 'USD is likely to trade in a range between 7.1800 and 7.2300 for now.' There is no change in our view for now."

The press statement following Wednesday's OPEC+ meeting was extremely short.

The press statement following Wednesday's OPEC+ meeting was extremely short. In the end, all previous decisions were confirmed, including production quotas until December 2026 and the mandate for the Joint Ministerial Monitoring Committee (JMMC), Commerzbank's commodity analyst Barbara Lambrecht notes. OPEC+ eyes further output hike at Saturday meeting"The focus is now on Saturday's (virtual) meeting of the eight key producers, who have additionally cut back their production. According to delegates, a further increase in production is on the cards (see above). This is all the more likely given the latest statements by Kazakh Energy Minister Yerlan Akkenzhenov, who has apparently already informed OPEC that his country will not reduce production.""Around 70% of the country's oil production is in the hands of international companies, which cannot be held to any commitments. According to the minister, further increases in production cannot be ruled out from September onwards." "The Kazakh Deputy Energy Minister is also quoted as saying that a further increase in OPEC+ production is to be expected on Saturday, but that the exact figure has not yet been decided: 400, 500 or 600 thousand barrels per day. If production in July were to increase even more than in previous months, oil prices, which have already fallen slightly in the run-up to the meeting, are likely to come under further pressure."

The USD/JPY pair trades lower slightly below 144.00 during European trading hours on Friday. The asset weakens as the Japanese Yen (JPY) outperforms across the board after the Statistics Bureau of Japan reported a hotter-than-projected Tokyo Consumer Price Index (CPI) data for May.

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/JPY falls below 144.000 despite a decent recovery in the US Dollar.US Appeals court lifted ban on Trump’s tariffs temporarily.Hot Tokyo CPI data has strengthened the Japanese Yen.The USD/JPY pair trades lower slightly below 144.00 during European trading hours on Friday. The asset weakens as the Japanese Yen (JPY) outperforms across the board after the Statistics Bureau of Japan reported a hotter-than-projected Tokyo Consumer Price Index (CPI) data for May. Japanese Yen PRICE Today The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.34% 0.09% -0.16% 0.03% 0.33% 0.06% 0.17% EUR -0.34% -0.22% -0.54% -0.31% 0.04% 0.05% -0.17% GBP -0.09% 0.22% -0.29% -0.07% 0.27% 0.10% 0.07% JPY 0.16% 0.54% 0.29% 0.18% 0.58% 0.37% 0.38% CAD -0.03% 0.31% 0.07% -0.18% 0.39% 0.15% 0.14% AUD -0.33% -0.04% -0.27% -0.58% -0.39% 0.01% -0.18% NZD -0.06% -0.05% -0.10% -0.37% -0.15% -0.01% -0.21% CHF -0.17% 0.17% -0.07% -0.38% -0.14% 0.18% 0.21% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote). Tokyo CPI excluding Fresh Food, a key inflation measure tracked closely by Bank of Japan (BoJ) officials, rose at a faster pace of 3.6%, compared to estimates of 3.5% and the prior reading to 3.4%.Hot Tokyo inflation data paves the way for more interest rate hikes this year. The next policy meeting of the BoJ will be on June 17. While, the latest Reuters poll that took place in the May 7-13 period showed most economists expect the BoJ to hold rates steady through September.Meanwhile, the pair is trading lower despite a decent recovery move in the US Dollar (USD). The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises to near 99.60.The Greenback attracts bids after the United States (US) federal appeals court gave verdict against international trade court’s decision to strike down a majority of tariffs imposed by President Donald Trump permanently.In today’s session, the US Personal Consumption Expenditure Price Index (PCE) will be the key trigger for the US Dollar, which will be published at 12:30 GMT.  US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

Gold price (XAU/USD) slides to near $3,290 during European trading hours on Friday, following a strong upside move the previous day.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Gold price falls back to near $3,300 as the US Dollar rebounds after US Appeals court lifts the ban on Trump’s tariffs temporarily.Earlier, US International Trade court struck down Trump’s tariffs as they were implemented under the cover of a national emergency.The US core PCE inflation is expected to grow moderately by 2.5% on year in April.Gold price (XAU/USD) slides to near $3,290 during European trading hours on Friday, following a strong upside move the previous day. The yellow metal faces selling pressure as the US Dollar (USD) gains ground after the United States (US) Court of Appeals suspends the federal trade court’s decision to ban the majority of tariffs announced by President Donald Trump, potentially diminishing hopes of permanent invalidation of import duties.Typically, a higher US Dollar makes investment in the Gold price an expensive bet for investors. At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, bounces back to near 99.65.On Wednesday, the US court of International Trade quoted most of the tariffs announced by Trump as “illegal”, citing that large trade imbalances don’t constitute a “national emergency” under the International Emergency Economic Powers Act (IEEPA). Using the IEEPA law, Trump announced reciprocal tariffs on all of his trading partners, a fentanyl duty on China, Canada and Mexico, and border negligence levies on his North American peers.Daily digest marker movers: Gold price trades lower ahead of US PCE Inflation dataA slight corrective move in the Gold price is also driven by anxiety among financial market participants ahead of the US Personal Consumption Expenditure Price Index (PCE) data for April, which will be published at 14:30 GMT. The core US PCE inflation data, which is the Federal Reserve’s (Fed) preferred inflation gauge, is expected to have grown at a moderate pace of 2.5% on year, compared to the prior release of 2.6%. On a monthly basis, the underlying inflation data is expected to have grown by 0.1% after remaining flat in March.However, the impact of the US PCE inflation data is likely to be limited in shaping market views on the Federal Reserve’s (Fed) monetary policy outlook, as officials are more concerned about consumer inflation expectations amid uncertainty over Trump’s tariff policy.On Thursday, Chicago Fed Bank President Austan Goolsbee stated that elevated uncertainty surrounding Trump’s tariff policy has held back US business. "If people can’t count on consistent policy, then they’re just going to slow down and not act," Goolsbee said, Reuters reported. Regarding the court ruling against the tariff policy, he added that the uncertainty would increase if the administration goes the other way to keep import duties in existence. Goolsbee also signaled that policymakers could bring interest rates down if “tariffs are avoided by a deal or otherwise”. The White House stated on Thursday that it will manage to keep tariffs in any way. “You can assume that even if we lose [in court], we will do it [tariffs] another way,” Washington trade negotiator Peter Navarro said, Reuters reported.Technical Analysis: Gold price wobbles around 20-day EMAGold price continues to struggle near the upward-sloping trendline on a daily timeframe around $3,335, which is plotted from the December 12 high of $2,726. The near-term trend of the precious metal is uncertain as it wobbles around the 20-day Exponential Moving Average (EMA), which trades near $3,290.The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, suggesting indecisiveness among market participants.Looking up, the May 7 high around $3,440 will act as key resistance for the metal. On the downside, the May 15 low at $3,120 will be the key support zone. Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

Sharp drop in US Dollar (USD) could extend against Japanese Yen (JPY); oversold conditions indicate that any decline is unlikely to reach 142.80.

Sharp drop in US Dollar (USD) could extend against Japanese Yen (JPY); oversold conditions indicate that any decline is unlikely to reach 142.80. In the longer run, the outlook for USD is unclear after wild swings; for the time being it could trade between 142.10 and 146.30, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. Outlook for USD is unclear after wild swings24-HOUR VIEW: "Two days ago, we expected USD to strengthen. Yesterday, after USD surged in the early Asian session, we indicated that 'We continue to expect USD to strengthen, but this time around, the significant resistance at 147.50 is unlikely to come under threat.' We pointed out that 'There is another resistance at 146.80.' USD rose less than expected to 146.28, and then in a surprise move, plunged to 143.94. The sharp drop could extend, but oversold conditions indicate that any decline is unlikely to reach 142.80. Resistance is at 144.60, followed by 145.20." 1-3 WEEKS VIEW: "USD surged in the early Asian trade yesterday. When it was at 145.75, we stated that 'even though the price action suggests further upside, it is too early to tell whether 147.50 is within reach.' We added, 'To sustain the momentum, USD must remain above the ‘strong support’ level, now at 144.50.' USD subsequently rose to 146.28 before reversing sharply, breaking below our ‘strong support’ level to reach 143.94. After the wild swings over the past few days, the outlook for USD is unclear. For the time being, USD could trade within this week’s wide range, between 142.10 and 146.30."

Gold prices are once again supported by geopolitical uncertainty. While prices dipped slightly after tariff delays, ongoing trade tensions continue to drive demand for the safe-haven meta, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.

Gold prices are once again supported by geopolitical uncertainty. While prices dipped slightly after tariff delays, ongoing trade tensions continue to drive demand for the safe-haven meta, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes. Tariff risks keep safe-haven demand elevated"The price of Gold is once again benefiting from the geopolitical situation. It has fallen again somewhat after Trump postponed an increase in tariffs against the EU and a US court ruled that most of the tariffs were illegal." "However, it is unclear whether the US administration will be impressed by this or whether it will find another way to introduce the tariffs. Uncertainty in the trade conflict is therefore likely to remain high until the negotiations are finalised, meaning that demand for the precious metal, which is considered a safe haven, should also remain high for the time being."

New Zealand Dollar (NZD) is likely to trade between 0.5940 and 0.6000. In the longer run, upward momentum has faded; NZD is likely to trade in a range between 0.5900 and 0.6000 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

New Zealand Dollar (NZD) is likely to trade between 0.5940 and 0.6000. In the longer run, upward momentum has faded; NZD is likely to trade in a range between 0.5900 and 0.6000 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. Upward momentum has faded24-HOUR VIEW: "Yesterday, we expected NZD to 'trade in a sideways range of 0.5925/0.5975.' However, after testing the 0.5925 level (low of 0.5926), NZD rose to 0.5990. We continue to expect range trading, but given the slight increase in upward momentum, NZD is likely to trade between 0.5940 and 0.6000." 1-3 WEEKS VIEW: "We highlighted yesterday (29 May, spot at 0.5950) that the recent 'upward momentum has faded.' We also highlighted that NZD 'is likely to trade in a range between 0.5900 and 0.6000 for now.' Our view remains unchanged."

The Oil market is likely to be eagerly awaiting tomorrow's decision by the eight OPEC+ countries that have voluntarily cut their production.

The Oil market is likely to be eagerly awaiting tomorrow's decision by the eight OPEC+ countries that have voluntarily cut their production. Following media reports that some delegates had already indicated that they would probably decide on a further significant increase in production, the Oil price had fallen. The actual announcement is therefore likely to have only a limited effect. The Oil price would probably only come under greater pressure if the Oil-producing countries were to increase their production even more than in previous months or give indications that there will be similarly high production increases in the following months, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes. Oil price is being supported by geopolitical factors"However, the fact that OPEC+ has at its last meetings not wanted to commit itself in advance speaks against this, probably also to give some members — above all Kazakhstan — the opportunity to correct their previous overproduction. In our view, the failure of these countries to meet their production targets is the main reason why the eight OPEC+ countries, led by Saudi Arabia, have recently increased their production more than originally planned.""Meanwhile, the Oil price is being supported by geopolitical factors. The US administration has renewed a US company's licence to produce Oil in Venezuela, allowing the company to maintain its operations there at a minimal level. At the same time, however, it has prohibited the company from exporting Oil. This is likely to have come as a disappointment to some market participants after a further extension of the previous production and export licence was discussed." "In addition, US President Trump recently clearly criticised Russia's President Putin for the recent attacks on Ukraine and threatened new sanctions, which would most likely affect the energy sector there. In light of these developments, an early easing of energy sanctions, which still seemed possible a few weeks ago, is now hardly conceivable."

Australian Dollar (AUD) is likely to consolidate in a range of 0.6420/0.6470 vs US Dollar (USD). In the longer run, for the time being, AUD is expected to trade in a range of 0.6380/0.6485, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Australian Dollar (AUD) is likely to consolidate in a range of 0.6420/0.6470 vs US Dollar (USD). In the longer run, for the time being, AUD is expected to trade in a range of 0.6380/0.6485, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. AUD to range trade in the coming days24-HOUR VIEW: "Yesterday, when AUD was at 0.6420, we stated that AUD 'could edge below 0.6400.' However, we were of the view that 'the next support at 0.6380 is unlikely to come under threat.' Our expectations did not turn out as expected, as AUD traded between 0.6408 and 0.6459. The price movements appear to be part of a consolidation phase, even though the firmer underlying tone suggests AUD is likely to trade in a higher range of 0.6420/0.6470 today." 1-3 WEEKS VIEW: "Our update from two days ago (28 May, spot at 0.6450), is still valid. As highlighted, for the time being, AUD is expected to trade in a range of 0.6380/0.6485."

The Aussie Dollar is retracing Thursday’s gains on Friday, with investors wary of holding large US Dollar shorts ahead of the release of US PCE inflation data.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The Aussie Dollar gives awa¡y gains with investors growing cautious ahead of US PCE inflation dataThe Dollar lost ground on Thursday as the US Court of Appeals paused the ban on tariffs.Weak Australian consumption and construction data have added pressure on the Aussie.The Aussie Dollar is retracing Thursday’s gains on Friday, with investors wary of holding large US Dollar shorts ahead of the release of US PCE inflation data. The pair, however, remains trapped within the 0.6400 to 0.6450 range for the third consecutive day.

The US lost ground on Thursday, after the US Federal Court of Appeals paused a lower court’s sentence to block most of the trade levies introduced on April 2, giving a fresh twist to the global trade saga.

The ruling reactivated fears about global trade uncertainty, amid the lack of progress on the trade negotiations with partners. This decision, coupled with the growing concerns about the US fiscal stability, has led to a steady sell-off of all US assets during the last few weeks.Investors are trimming Dollar shorts ahead of the US PCE Prices Index releaseThe Greenback, however, is going through some short covering during Friday’s European session, with investors closing some Dollar short positions ahead of the US PCE Prices Index release.

PCE inflation is expected to have ticked up in April, yet with the yearly rate cooling further. Headline inflation is seen slowing down to 2.2% from 2.3%, and the Core PCE Prices Index easing to 2.5% in April, after March’s 2.6% reading.

In Australia, recent data have not been particularly supportive. Retail Sales and Building permits dropped against expectations in April, but the strong CPI data seen earlier this week casts doubt about a July cut, and is keeping the Aussie from falling further. Inflation FAQs What is inflation? Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%. What is the Consumer Price Index (CPI)? The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls. What is the impact of inflation on foreign exchange? Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money. How does inflation influence the price of Gold? Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.

Yesterday, there was a brief glimmer of hope that US courts might overturn the US government's tariff policy. The resulting recovery of the US dollar was short-lived. After an appeals court blocked a corresponding injunction, the dollar took a significant hit. Of course, the ruling is preliminary.

Yesterday, there was a brief glimmer of hope that US courts might overturn the US government's tariff policy. The resulting recovery of the US dollar was short-lived. After an appeals court blocked a corresponding injunction, the dollar took a significant hit. Of course, the ruling is preliminary. The final outcome is not necessarily clear. Nevertheless, the US government has already made it clear that it would pursue further legal avenues if necessary: appealing to the Supreme Court, finding other legal grounds for the tariffs, etc, Commerzbank's Head of FX and Commodity Research Ulrich Leuchtmann notes. The uncertainty of the Big Beautiful Bill"And in any case, one must ask how capable the judiciary in the US is of stopping the government. The poor guy who remains in prison in El Salvador, even though this situation contradicts current US case law, is not only regrettable, but also a warning sign that the legal control of the US government is de facto incomplete. He is therefore not only relevant to US migration policy, but also to other policy areas, including trade policy.""Can we really believe that in case of doubt – when it is more relevant than it is at present – the president will accept the Fed's independence? Here, too, legalistic arguments can be made to explain why the president has only limited options to curtail Fed independence under the current legal framework. But here, too (as above), the market is unlikely to derive sufficient certainty from this. From a market perspective, confidence in the US legal system is likely to become increasingly insufficient, regardless of what individual court rulings say.""I find it particularly interesting that a section of the tax bill currently before the US Senate (the 'big beautiful bill') is attracting increasing attention: section 899. This gives the US president the right to impose a special tax on foreign investors in the US if the taxes in their home country are considered unfair from the US perspective. Europe would also be affected by this. Section 899 shows that what was feared is actually happening: now that the US government is realizing that tariffs are not a simple tool for forcing other countries into compliant behavior, alternative instruments are needed. Anyone who invests in the US or who is considering investing in the US must be aware of this. In my view, it is highly questionable how much of a premium the dollar still deserves for allowing capital to be invested there."

India Gross Domestic Product Quarterly (YoY) above expectations (6.7%) in 1Q: Actual (7.4%)

Italy Producer Price Index (YoY): 2.6% (April) vs previous 3.9%

Italy Producer Price Index (MoM) up to -2.2% in April from previous -2.4%

Portugal Gross Domestic Product (QoQ) meets forecasts (-0.5%) in 1Q

Portugal Gross Domestic Product (YoY) in line with expectations (1.6%) in 1Q

Pound Sterling (GBP) is likely to trade in a range of 1.3455/1.3530. In the longer run, current price movements still appear to be part of a range trading phase, likely between 1.3400 and 1.3600, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Pound Sterling (GBP) is likely to trade in a range of 1.3455/1.3530. In the longer run, current price movements still appear to be part of a range trading phase, likely between 1.3400 and 1.3600, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. Current price movements seem to be part of a range trading phase24-HOUR VIEW: "Yesterday, we expected GBP to 'trade with a downward bias toward 1.3395.' However, we pointed out, 'a sustained break below this level seems unlikely.' Our view was incorrect, as after dropping to 1.3417, GBP rebounded to close at 1.3490 (+0.23%). The slight increase in momentum is not enough to suggest further rise. Today, GBP is more likely to trade in a range of 1.3455/1.3530." 1-3 WEEKS VIEW: "In the early Asian session yesterday (29 May, spot at 1.3435), we indicated that 'the slight increase in downward momentum is likely to lead to GBP trading in a lower range of 1.3330/1.3530.' We did not expect the subsequent strong rebound that reached 1.3507. The mild downward momentum has faded with the rebound, and upward momentum has increased slightly. That said, the current price movements still appear to be part of a range trading phase, albeit a higher one, between 1.3400 and 1.3600."

Tokyo May inflation data surprised on the upside, ING's FX analyst Chris Turner notes.

Tokyo May inflation data surprised on the upside, ING's FX analyst Chris Turner notes.Risks are clearly skewed to the downside for the USD/JPY"At the 3.6% YoY, the ex-food reading was the highest since early 2023. The data supports her view that the risk of a Bank of Japan rate hike in July is underpriced by the market. Currently, investors only attach a 14% probability to such an outcome.""A hike in July would certainly support the yen. It would also make it a little less expensive for Japanese holders to FX hedge their US assets. Those investors from a low interest rate region (i.e., Japan) tend to have lower hedge ratios on US assets." "Clearly, a reduction in hedging costs would add to the current narrative that the global investor community wants to raise its dollar hedge ratios. We have a 140 year-end forecast for USD/JPY. But the risks are clearly skewed to the downside here."

There is scope for the sharp rally to extend; deeply overbought conditions suggest any advance is likely part of a higher range of 1.1330/1.1415.

There is scope for the sharp rally to extend; deeply overbought conditions suggest any advance is likely part of a higher range of 1.1330/1.1415. In the longer run, increase in momentum is not enough to indicate a sustained advance; EUR is likely to trade in a range of 1.1270/1.1435 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. There is scope for the sharp rally to extend24-HOUR VIEW: "EUR plunged in the early Asian session yesterday. When EUR was at 1.1245, we highlighted that 'further weakness is not ruled out, but the sharp drop seems excessive, and it is unclear whether EUR can break and hold below 1.1200.' However, rather than weakening, EUR surged, reaching a high of 1.1384 in the late NY session. The sharp rally has scope to extend, but given the deeply overbought conditions, any advance is likely part of a higher range of 1.1330/1.1415. To put it another way, EUR is unlikely to break clearly above 1.1415." 1-3 WEEKS VIEW: "The following are excerpts from our update yesterday: 'To continue to decline, EUR must first close below 1.1200. The risk of EUR closing below 1.1200 will remain intact provided that the ‘strong resistance’ level, currently at 1.1355, is not breached.' EUR never threatened 1.1200 (low of 1.1209). Instead, it reversed all of its early Asian session selloff, surging to close at 1.1371 in NY, up 0.70%. Although the sharp rally has gathered some momentum, it is not enough to indicate a sustained advance just yet. To rise in a sustained manner, EUR must first break and hold above 1.1435. Meanwhile, we expect EUR to trade in a range of 1.1270/1.1435."

Yesterday's dollar rally didn't last long. It quickly became clear that the Trump administration would pursue other trade laws to enact its tariffs, and later, the US Court of Appeals proposed a delay in the original court ruling that tariffs were illegal.

Yesterday's dollar rally didn't last long. It quickly became clear that the Trump administration would pursue other trade laws to enact its tariffs, and later, the US Court of Appeals proposed a delay in the original court ruling that tariffs were illegal. The suggestion now is that a further presentation of evidence could last up until 9 June in the appeals court, ING's FX analyst Chris Turner notes.DXY can make a run back to 98.70 "What weighed on the dollar more yesterday seemed to be the US macro data. Personal consumption got revised down to 1.2% from 1.7% quarter-on-quarter annualised in the first quarter GDP release. And a pick-up in initial claims didn't help either. In effect, we saw a return to traditional correlations, where US Treasury yields dropped 5bp and the dollar weakened.""Traditional macro correlations could be in store for the dollar today. The focus here is on the April PCE data. Perhaps most important will be the personal spending number, which is expected to soften to 0.2% month-on-month from 0.7%. Any downside miss here would hit the dollar. The market will also be looking at the price data. This is expected to be very benign, with the core deflator still at 0.1% MoM, bringing the year-on-year rate to 2.5% – the lowest since 2021.""Friday is also our day to report on Fed Custody holdings of US Treasuries for foreign official accounts. In the week to Wednesday, these actually rose $10bn. So no evidence this week of a further divestment in US assets. Remember, the Fed thinks it's hedging, not divestment, that has been driving the dollar lower recently. DXY could make a run back to 98.70 should personal spending disappoint today."

The New Zealand Dollar has been rejected at the 0.6000 psychological area and returned to 0.5950, as the US Dollar regains lost ground, with investors bracing for the release of April’s US PCE Price Index reading.,The Dollar lost ground against its main peers earlier on Thursday, as a US federal co

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}New Zealand Dollar retreats below 0.5950 after rejection at the 0.6000 psychological area.The USD is witnessing short-covering ahead of the US PCE Prices Index reading.Downbeat New Zealand's data have added bearish pressure on the Kiwi. The New Zealand Dollar has been rejected at the 0.6000 psychological area and returned to 0.5950, as the US Dollar regains lost ground, with investors bracing for the release of April’s US PCE Price Index reading.
,
The Dollar lost ground against its main peers earlier on Thursday, as a US federal court paused Wednesday’s sentence from the International Trade Court banning most of the trade tariffs introduced from April 2.

The decision from the Federal Court of Appeals has given a new twist to Trump’s chaotic trade policy, reactivating the “sell America” trade that has pushed the US Dollar Index about 3.5% lower in the last two months.

The Greenback, however, has found some support and is going through some short covering with investors closing some of their positions ahead of the US Personal Consumption Expenditures Prices Index.

PCE Inflation, the Federal Reserve’s inflation gauge of choice, is expected to show a minor increase in monthly inflation, with the yearly rate moderating further. Headline inflation is seen easing to 2.2% from 2.3%, with the Core PCE Prices Index down to 2.5% from the previous 2.6% reading.

Data from New Zealand has failed to support the Kiwi, as the Business sentiment released on Thursday deteriorated to its lowest levels of the last 10 months. Furthermore, RBNZ acting Governor Hawkesby warned about growth headwinds in the near-term, adding pressure on the NZD.
New Zealand Dollar PRICE Today The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.36% 0.18% -0.04% 0.08% 0.45% 0.18% 0.09% EUR -0.36% -0.15% -0.42% -0.28% 0.12% 0.14% -0.28% GBP -0.18% 0.15% -0.25% -0.11% 0.29% 0.12% -0.11% JPY 0.04% 0.42% 0.25% 0.12% 0.59% 0.37% 0.19% CAD -0.08% 0.28% 0.11% -0.12% 0.46% 0.22% 0.00% AUD -0.45% -0.12% -0.29% -0.59% -0.46% 0.02% -0.39% NZD -0.18% -0.14% -0.12% -0.37% -0.22% -0.02% -0.41% CHF -0.09% 0.28% 0.11% -0.19% -0.01% 0.39% 0.41% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).

Silver prices (XAG/USD) fell on Friday, according to FXStreet data.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Silver prices (XAG/USD) fell on Friday, according to FXStreet data. Silver trades at $33.17 per troy ounce, down 0.46% from the $33.32 it cost on Thursday. Silver prices have increased by 14.80% since the beginning of the year. Unit measure Silver Price Today in USD Troy Ounce 33.17 1 Gram 1.07   The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 99.36 on Friday, down from 99.58 on Thursday.   Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver. (An automation tool was used in creating this post.)

Italy Consumer Price Index (MoM) registered at 0%, below expectations (0.1%) in May

Italy Consumer Price Index (YoY) meets expectations (1.7%) in May

Italy Consumer Price Index (EU Norm) (YoY) meets forecasts (1.9%) in May

Italy Consumer Price Index (EU Norm) (MoM) registered at 0.1% above expectations (0%) in May

Greece Unemployment Rate (MoM) down to 8.3% in April from previous 9%

Greece Producer Price Index (YoY) fell from previous 2.1% to 0.5% in April

Greece Retail Sales (YoY): 0.3% (March) vs previous 4.6%

Silver keeps posting lower highs since peaking at $33.70 last weekRecent price action is forming a descending triangle pattern, a bearish sign.XAG/USD: Below the $32.60-3270 support, the next targets are $32.15 and $31.70.Silver prices (XAG/USD) are paring losses during Friday’s European session.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Silver keeps posting lower highs since peaking at $33.70 last week
Recent price action is forming a descending triangle pattern, a bearish sign.
XAG/USD: Below the $32.60-3270 support, the next targets are $32.15 and $31.70.

Silver prices (XAG/USD) are paring losses during Friday’s European session. The pair has returned above the $33.00 level following a significant reversal during the Asian session.
From a wider perspective, however, price action remains wavering within recent range, with the 4-hour RSI moving back and forth around the 50 level, which indicates a lack of clear momentum. Technical analysis: XAG/USD remains trading within a triangle patternFour-hour charts show the precious metal moving within a descending triangle pattern, printing lower highs since its rejection at $33.70. This pattern often anticipates a bearish outcome.

Immediate support is at the $32.60-32.70 area, where bears were contained in May 22 and 25. If this area gives way, the next support levels are the May 20 low at $32.15 and the May 1 and 15 lows at the $31.70 area.On the upside, a successful break of the triangle’s top, now around $33.40, cancels this view and brings the $33.70 top back into focus.XAG/USD 4-Hour Chart Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

European Central Bank (ECB) executive board member Fabio Panetta said on Friday that there is a “reduced room to cut rates further, but the macro outlook remains weak and trade tensions could worsen it.”

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} European Central Bank (ECB) executive board member Fabio Panetta said on Friday that there is a “reduced room to cut rates further, but the macro outlook remains weak and trade tensions could worsen it.”Further commentsFuture rate decisions need to be assessed on case-by-case basis, weighing data, inflation and growth outlook.

Essential to maintain pragmatic and flexible approach, closely monitor liquidity conditions.

Disinflation has not taken too high a toll on the Eurozone economy and is now close to completion.

Outcome of trade negotiations uncertain but impact on European economy bound to be significant.

Sectors most exposed to tariffs already showing signs of falling confidence, weaker expectations on orders and employment.Market reactionEUR/USD was last seen changing hands at 1.1345, down 0.21% on the day, little moved by these comments. ECB FAQs What is the ECB and how does it influence the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. What is Quantitative Easing (QE) and how does it affect the Euro? In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic. What is Quantitative tightening (QT) and how does it affect the Euro? Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.

The US Dollar (USD) recovers on Friday after a sharp sell-off the previous day, with investors remaining uncertain over the existence of majority of tariffs imposed by United States (US) President Donald Trump on all of his trading partners since his return to the White House this year.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The US Dollar attracts bids on Friday as US Appeals court temporarily halted lower court’s decision of tariff injunction.The White House has stated that they will find a way to keep tariffs in existence.Investors await the US PCE inflation data for April.The US Dollar (USD) recovers on Friday after a sharp sell-off the previous day, with investors remaining uncertain over the existence of majority of tariffs imposed by United States (US) President Donald Trump on all of his trading partners since his return to the White House this year.During European trading hours, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises to near 99.50.Investors start doubting the sustainability of reciprocal, fentanyl, and border negligence-related-tariffs as the US Court of International Trade strike them down on Wednesday after a plea from domestic small businesses, quoting them as a direct threat to their survival.However, the Federal appeals court in Washington has issued a temporary stay on the International Trade court’s decision of tariff injunction after consider the government’s appeal.Meanwhile, the White House is confident that they will mange to keep tariffs in any way. “You can assume that even if we lose [in court], we will do it [tariffs] another way,” Washington trade negotiator Peter Navarro said, Reuters reported.On the economic front, investors await the US Personal Consumption Expenditure Price Index (PCE) data for April, which will be published at 12:30 GMT. The core PCE inflation data, which is Federal Reserve’s (Fed) preferred inflation gauge, is expected to have grown at a moderate pace of 2.5% on year, compared to the prior release of 2.6%. The impact of the inflation data is expected to be limited on the Fed’s monetary policy outlook as officials seek more information to know whether tariffs will sustain and how much they will impact the economic outlook if they do. US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

EUR/USD is trading with minor losses around 1.1340 at the time of writing on Friday, but it holds most of the ground taken during Thursday after a US federal court reversed the block on US President Donald Trump’s tariffs, triggering a sharp US Dollar (USD) sell-off.The US Court of Appeals paused th

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}
EUR/USD trims gains as the US Dollar finds support ahead of the PCE inflation data release.A US federal court reversed the previous day's sentence blocking tariffs and sent the US Dollar tumbling on Thursday. In Europe, the focus will be on the German CPI due later today.EUR/USD is trading with minor losses around 1.1340 at the time of writing on Friday, but it holds most of the ground taken during Thursday after a US federal court reversed the block on US President Donald Trump’s tariffs, triggering a sharp US Dollar (USD) sell-off.

The US Court of Appeals paused the previous day’s ruling of the Court for International Trade, which blocked most of the levies introduced on April 2. The decision has added to the global trade scenario and increased pressure on all US assets.

Investors’ concerns about the erratic trade policy, coupled with growing fears about US fiscal stability, heightened by a tax-slashing bill that is expected to add trillions of Dollars to an already high US debt, are fuelling the “Sell America” trade and undermining the USD over the last two months.

In the macroeconomic front, US data did little to improve markets ’mood, with weekly Initial Jobless Claims rising beyond expectations and the Gross Domestic Product (GDP) confirming that the economy contracted in the first quarter.

In Europe, German Retail Sales data have failed to support the Euro (EUR), increasing concerns about the health of the Eurozone’s major economy, although the impact has been minimal. Investors’ focus is on the German Consumer Prices Index figures, due later in the day. Euro PRICE Today The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.21% 0.07% -0.13% 0.06% 0.36% 0.02% 0.07% EUR -0.21% -0.12% -0.38% -0.15% 0.18% 0.13% -0.15% GBP -0.07% 0.12% -0.21% -0.01% 0.32% 0.08% -0.01% JPY 0.13% 0.38% 0.21% 0.21% 0.61% 0.32% 0.28% CAD -0.06% 0.15% 0.01% -0.21% 0.39% 0.08% 0.00% AUD -0.36% -0.18% -0.32% -0.61% -0.39% -0.06% -0.33% NZD -0.02% -0.13% -0.08% -0.32% -0.08% 0.06% -0.27% CHF -0.07% 0.15% 0.01% -0.28% -0.01% 0.33% 0.27% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Daily digest market movers: US Dollar finds support ahead of the PCE reportThe US Dollar dropped sharply after the Court of Appeals’ decision to temporarily reinstate US President Trump’s trade tariffs. However, the Greenback found some footing on Friday, with investors bracing for the release of the US Personal Consumer Expenditures (PCE) Price Index, due later in the day.
US PCE inflation is expected to have ticked up by 0.1% in April, after a flat reading in March, with the yearly rate easing to 2.2% from the previous 2.3% reading. The core figure, of higher relevance to the Federal Reserve (Fed), is expected to show the same monthly performance, with the yearly inflation down to 2.5% from 2.6% in March.
Data released on Thursday revealed that the US Weekly Jobless Claims increased by 240K last week, well above the 230K expected. The previous week’s reading was revised down to 226K from the previously estimated 227K.
Apart from that, the first quarter’s US GDP confirmed that the economy contracted, although at a slower-than-expected rate, -0.2% instead of the -0.3% previously reported.
Furthermore, US consumer spending slowed down against expectations. The core Personal Consumption Expenditures eased to 3.4% in the first quarter, against the 3.5% expected, all in all increasing fears about the economic momentum.
In the Euro Area, German Retail Sales have shown an unexpected decline in April. Retail consumption fell by 1.1% against expectations of a 0.2% increase, which reveals the soft momentum of the country’s economy.
The highlight of the day, however, is the German CPI release, which is expected to show some moderation in April, with the yearly CPI steady at 2.1% and the core index easing to 2% from the previous 2.2%. These figures add to the case for further European Central Bank (ECB) easing in June and might hurt the Euro.Technical analysis: EUR/USD remains capped by the reverse trendline at the 1.1390 areaEUR/USD bounced sharply on Thursday, printing a bullish engulfing candle on the daily chart. This is a positive sign, but it needs to be confirmed by further appreciation above a previous trendline support, now turned resistance, at 1.1390, and also above the weekly high, at 1.1420.

A confirmation above those two levels would shift the focus towards the April 22 high, near 1.1545.

On the contrary, failure to extend beyond 1.1420 might put bears back in control, and increase pressure towards the 1.1220 support zone ahead of the 1.1135 (May 16 low) and 1.1070 (May 12 low) levels.EUR/USD 4-Hour Chart Inflation FAQs What is inflation? Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%. What is the Consumer Price Index (CPI)? The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls. What is the impact of inflation on foreign exchange? Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money. How does inflation influence the price of Gold? Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.

The Pound Sterling (GBP) drops to near 1.3475 against the US Dollar (USD) in Friday’s European trading session.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The Pound Sterling falls slightly to near 1.3475 against the US Dollar as the Greenback rebounds slightly.A US federal appeals court temporarily puts on hold a lower court’s ruling against Trump’s tariffs.Investors await the US PCE inflation data for April.The Pound Sterling (GBP) drops to near 1.3475 against the US Dollar (USD) in Friday’s European trading session. The GBP/USD pair faces selling pressure after a United States (US) federal appeals court temporarily halted a federal trade court’s decision to block most of US President Donald Trump’s tariffs.  The move hurt market sentiment due to renewed fears over how the impact of a trade war between the US and its main trade partners could hit growth. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, ticks up to near 99.50.On Wednesday, a US trade court ordered the permanent injunction of reciprocal, fentanyl, and border negligence-related tariffs in 10 calendar days for abusing the 1977 International Emergency Economic Powers Act (IEEPA). The court accused Trump of invoking “national emergency” to execute tariff policies, which should have been imposed with the approval of the Congress.The appeal court, however, halted the ruling due to the government’s appeal and ordered the plaintiffs [US small businesses] in the cases to respond by June 5 and the administration by June 9, according to a report from the Firstpost.Apart from the judicial woes related to tariffs, another reason behind the moderate recovery in the US Dollar is a clear signal from the Federal Reserve (Fed) that it will focus solely on maintaining the central bank’s dual mandate, shrugging off recent political pressure from Trump.Fed Chair Jerome Powell said after his first face-to-face meeting with Trump since the return of the latter to the White House that the path of policy will depend entirely on “incoming economic information and what that means for the outlook," Reuters reported. Powell also said that he didn’t express his intentions to Trump regarding the monetary policy outlook. Trump said that he believes the Fed is making a mistake by not lowering interest rates.For fresh cues regarding the US monetary policy outlook, investors await the release of the US Personal Consumption Expenditure Price Index (PCE) data for April at 12:30 GMT. According to the CME FedWatch tool, the Fed isn’t expected to cut interest rates until  September.Daily digest market movers: Pound Sterling trades steadily against its peersThe Pound Sterling is broadly sideways against its major peers during European trading hours on Friday. The British currency is expected to close May on a positive note against the US Dollar for the fourth consecutive month. Market expectations for a moderate policy-expansion cycle by the Bank of England (BoE) and the closure of trade deals with Washington, Delhi, and Brussels have helped strengthening the UK currency.According to a report from Reuters, the futures market indicates that traders expect borrowing rates to fall by around 38 basis points (bps) by the end of this year, implying one 25 bps interest-rate cut and a roughly 50% odds of a second.The major triggers behind traders paring BoE dovish bets are robust economic growth in the first quarter and, hotter-than-projected inflation.The International Monetary Fund (IMF) has slightly raised its UK GDP growth forecast for the current year to 1.2% from its prior estimate of 1.1%. The upward revision came on the back of upbeat Q1 Gross Domestic Product (GDP) data, which showed that the economy expanded at a robust pace of 0.7% compared to 0.1% seen in the last quarter of 2024.On Thursday, BoE Governor Andrew Bailey guided a “gradual and careful approach” in cutting interest rates, citing that the economy is “hard to read”. Bailey cautioned about “strengthening inflation in food and other product categories”. On the employment front, Bailey said that the UK labour market data is pretty much “in line with our expectations” and the “slowing wage increase trend is still intact”.Technical Analysis: Pound Sterling holds key support level of 1.3445The Pound Sterling falls to near 1.3470 against the US Dollar on Friday after a strong upside move on the previous day. The GBP/USD pair holds the key horizontal support plotted from the September 26 high of 1.3434 and rises to near 1.3500. The outlook of the pair remains firm as the 20-day Exponential Moving Average (EMA) slopes higher around 1.3395.The 14-day Relative Strength Index (RSI) struggles to hold above 60.00. The bullish momentum would fade if the RSI slides into the 40.00-60.00 range.On the upside, the January 13, 2022, high of 1.3750 will be a key hurdle for the pair. Looking down, the 20-day EMA will act as a major support area.  Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

Spain Current Account Balance: €1.42B (March) vs previous €2.31B

Germany Brandenburg CPI (MoM) dipped from previous 0.4% to 0% in May

Germany Brandenburg CPI (YoY): 2.2% (May)

Germany Hesse CPI (YoY) remains unchanged at 2.3% in May

Germany Hesse CPI (MoM) declined to 0% in May from previous 0.5%

Germany Saxony CPI (MoM): 0% (May) vs previous 0.5%

Germany Saxony CPI (YoY) down to 2.3% in May from previous 2.4%

Germany North Rhine-Westphalia CPI (MoM) dipped from previous 0.4% to 0.2% in May

Eurozone M3 Money Supply (3m) climbed from previous 3.7% to 3.8% in April

Germany North Rhine-Westphalia CPI (YoY) rose from previous 1.8% to 2% in May

Eurozone Private Loans (YoY) above forecasts (1.8%) in April: Actual (1.9%)

Eurozone M3 Money Supply (YoY) registered at 3.9% above expectations (3.7%) in April

Italy Gross Domestic Product (QoQ) meets forecasts (0.3%) in 1Q

Italy Gross Domestic Product (YoY) came in at 0.7%, above expectations (0.6%) in 1Q

Germany Bavaria CPI (YoY): 2.1% (May)

Germany Bavaria CPI (MoM) fell from previous 0.4% to 0.1% in May

GBP/JPY extends its losses for the second successive session, trading around 194.00 during the European hours on Friday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}GBP/JPY holds losses as the Japanese Yen advances, driven by stronger Tokyo’s core inflation.The JPY gained support amid increased safe-haven demand after the US appeals court issued a decision blocking Trump tariffs.The International Monetary Fund increased the UK GDP growth forecast for the current year to 1.2% from 1.1%.GBP/JPY extends its losses for the second successive session, trading around 194.00 during the European hours on Friday. The Japanese Yen (JPY) appreciates against its peers, weighing on the currency cross, after Tokyo’s core inflation posted a stronger-than-expected data, reinforcing the odds of the Bank of Japan’s (BoJ) 25 basis point rate hike in July.On Friday, the Tokyo Consumer Price Index (CPI) increased 3.4% year-over-year in May, slightly softer than the previous 3.5% rise. Meanwhile, Tokyo Core CPI excluding Fresh Food came in at 3.6% YoY, following a 3.4% increase in April. The index has surpassed median market forecasts for a 3.5% gain.The JPY also received support from the safe-haven flows after the US Court of Appeals for the Federal Circuit in Washington, on Thursday, temporarily allowed Trump's tariffs to take effect, holding a decision by a three-judge panel at the Court of International Trade in Manhattan.On Wednesday, the federal court condemned Trump’s usage of the Carter-era International Emergency Economic Powers Act (IEEPA) to justify his international agenda, quoting it as exploitation of the president’s authority. The federal court found that Trump exceeded his authority in imposing broad import tariffs and declared the executive orders issued on April 2 unlawful.The downside of the GBP/JPY cross could be restrained as the Pound Sterling (GBP) may receive support as the International Monetary Fund (IMF) raised the United Kingdom (UK) Gross Domestic Product (GDP) growth forecast for the current year to 1.2% from 1.1%.The GBP also gains from the weakening of the probability of the Bank of England (BoE) reducing interest rates again in the June policy meeting. The hotter-than-expected UK Consumer Price Index (CPI) and a robust growth in the UK Retail Sales data for April weakened the dovish bets surrounding the Bank of England’s (BoE) policy outlook. Tariffs FAQs What are tariffs? Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas. What is the difference between taxes and tariffs? Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers. Are tariffs good or bad? There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs. What is US President Donald Trump’s tariff plan? During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

Germany Baden-Wuerttemberg CPI (YoY) dipped from previous 2.4% to 2.2% in May

Germany Baden-Wuerttemberg CPI (MoM) dipped from previous 0.5% to -0.1% in May

WTI Oil prices reversed gains on Thursday, after the US Court of Appeals reversed a sentence from a lower court to block Trump's trade tariffs.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Oil prices gave away gains as a US court reinstated Trump’s tariffsInvestors remain wary that  OPEC+ countries might hike output after Saturday’s meeting.The uncertain global growth scenario is undermining Oil demand expectations.WTI Oil prices reversed gains on Thursday, after the US Court of Appeals reversed a sentence from a lower court to block Trump's trade tariffs. The decision brought trade uncertainty back to the table, casting doubts about global demand for Oil.

The US administration maintains contacts with trade partners to cut “beautiful deals,”  but with no substantial progress so far. The negotiations with Japan are drawing out long, and talks with China seem to have stalled. The lack of good news is adding pressure on Crude prices.Oversupply concerns keep upside attempts limitedBeyond that, OPEC+ countries are expected to meet on May 31 and will probably agree to increase supply by 411,000 barrels per day from July. In the context of restricted trade and a highly likely slowdown in global growth, markets are fearing an oil glut.

Macroeconomic data from the US and the Eurozone support that view. US GDP contracted in the first quarter by 0.2%, with consumer spending declining. Businesses and consumers seem to be delaying their purchasing decisions, wary of Trump’s erratic trade policies.

In Germany, unemployment figures revealed higher-than-expected layoffs in April, and retail sales declined unexpectedly, revealing the soft momentum of the Eurozone’s major economy.

On the positive side, the US Energy Information Administration reported that crude stocks fell last week by 2.8 million barrels, against expectations of a 1 million increase, which provided some support to prices.
WTI Oil FAQs What is WTI Oil? WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. What factors drive the price of WTI Oil? Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. How does inventory data impact the price of WTI Oil The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency. How does OPEC influence the price of WTI Oil? OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

NZD/USD halts its two-day winning streak after offering daily gains, trading around 0.5960 during the early European hours on Friday. However, the pair could regain its ground as the US Dollar (USD) may struggle following the ruling allowing US President Donald Trump's tariffs to take effect.

.fxs-event-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-event-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-event-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-event-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:12px}.fxs-event-module-section:last-child{border:none;margin-bottom:0}.fxs-event-module-header{color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px;margin:0;padding:4px 0;background-color:#fff;border:none;position:relative;padding-right:32px}.fxs-event-module-header label{cursor:pointer;display:block}.fxs-event-module-header label:after,.fxs-event-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-event-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-event-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]{display:none}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:after{transform:rotate(45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-event-module-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0;margin-top:8px}.fxs-event-module-content.why-matters{max-height:0;overflow:hidden;transition:all .3s ease-in-out}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-content.why-matters{max-height:1000px;margin-top:8px}.fxs-event-module-calendar-title{color:#1b1c23;font-size:17.6px;font-family:Roboto;font-style:normal;font-weight:700;line-height:20.8px;margin:4px 0 0 0}.fxs-event-module-calendar-title-description-wrapper{display:flex;flex-direction:column;gap:12px;border-bottom:1px solid #ececf1;padding-bottom:16px;margin-bottom:16px}.fxs-event-module-inner-calendar{padding:16px}.fxs-event-module-inner-calendar .fxs-event-module-section{padding:0}.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:12.8px;line-height:17px}.fxs-event-module-read-more{display:flex;align-items:center;align-content:center;gap:4px;color:#e4871b;font-size:12.8px;font-family:Roboto;font-style:normal;font-weight:700;line-height:17px;text-decoration:none}.fxs-event-module-read-more svg{width:16px;height:16px}.fxs-event-module-read-more:hover span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}NZD/USD loses ground as traders adopt caution ahead of PCE inflation data due on Friday.The US Dollar may face challenges as the federal court ruled allowing Trump's tariffs to take effect.The ANZ–Roy Morgan Consumer Confidence fell to 92.9 in May, down from 98.3 in April.NZD/USD halts its two-day winning streak after offering daily gains, trading around 0.5960 during the early European hours on Friday. However, the pair could regain its ground as the US Dollar (USD) may struggle following the ruling allowing US President Donald Trump's tariffs to take effect.A three-judge panel at the Court of International Trade in Manhattan, on Wednesday, condemned Trump’s misuse of the Carter-era International Emergency Economic Powers Act (IEEPA) to justify his international agenda. The federal court said that Trump exceeded his authority in imposing broad import tariffs and declared the executive orders issued on April 2 unlawful.“US President Donald Trump's administration is weighing on the use of an existing law that includes language allowing for tariffs of up to 15% for 150 days.” “The administration has not made a final decision, and it could wait to impose any plans,” the Wall Street Journal (WSJ) reported.On the US data side, the US economy contracted as the preliminary Gross Domestic Product Annualized showed a 0.2% decline in the Q1. This contraction was less bad than the expected decline of 0.3%. Personal Consumption Expenditures (PCE) remained consistent at a 3.6% increase quarter-over-quarter in Q1, as expected. Meanwhile, Core PCE rose 3.4% QoQ against the expected 3.5% increase. Furthermore, the US April Personal Consumption Expenditures (PCE) Price Index report will likely be released on Friday.On the Kiwi side, the ANZ–Roy Morgan Consumer Confidence declined to 92.9 in May, down from 98.3 in April, weakening consumer sentiment. The persistent high inflation expectations continue to weigh on household sentiment. Moreover, the seasonally adjusted Building Permits depreciated by 15.6% month-on-month in April, as compared to the previous increase of 10.7% (revised from 9.6%) in March. Economic Indicator Personal Consumption Expenditures - Price Index (MoM) The Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US).. The MoM figure compares prices in the reference month to the previous month. Price changes may cause consumers to switch from buying one good to another and the PCE Deflator can account for such substitutions. This makes it the preferred measure of inflation for the Federal Reserve. Generally speaking, a high reading is bullish for the US Dollar (USD), while a low reading is bearish. Read more. Next release: Fri May 30, 2025 12:30 Frequency: Monthly Consensus: 0.1% Previous: 0% Source: US Bureau of Economic Analysis

The USD/CAD pair regains positive traction on Friday and reverses a part of the previous day's retracement slide from the 1.3860 area, or a one-week high.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/CAD attracts some dip-buying on Friday amid a modest USD uptick.Weaker Oil prices undermine the Loonie and further support the major.Traders now await the US PCE Price Index before placing directional bets.The USD/CAD pair regains positive traction on Friday and reverses a part of the previous day's retracement slide from the 1.3860 area, or a one-week high. Spot prices stick to modest intraday gains around the 1.3815 region heading into the European session as traders keenly await the release of the crucial US Personal Consumption Expenditure (PCE) Price Index. The crucial US inflation report will play a key role in influencing market expectations about the Federal Reserve's (Fed) rate-cut path, which, in turn, will drive the US Dollar (USD) demand and provide a fresh directional impetus to the USD/CAD pair. In the meantime, some repositioning trade assists the USD to attract some dip-buyers following Thursday's dramatic turnaround. Apart from this, weaker Crude Oil prices undermine the commodity-linked Loonie and act as a tailwind for the currency pair.Any meaningful USD appreciation, however, still seems elusive in the wake of concerns about the worsening US fiscal situation. Furthermore, traders have been pricing in the possibility that the Federal Reserve (Fed) will lower borrowing costs further this year, which might hold back the USD bulls from placing aggressive bets. Adding to this, diminishing odds for a Bank of Canada (BoC) interest rate cut in June could support the Canadian Dollar (CAD) and also contribute to capping the USD/CAD pair. Hence, it will be prudent to wait for strong follow-through buying before confirming that spot prices have formed a near-term bottom and positioning for an extension of the recent bounce from sub-1.3700 levels, or the year-to-date low touched on Monday. Nevertheless, the USD/CAD pair remains on track to register modest weekly gains, though the fundamental backdrop warrants some caution for bullish traders. Canadian Dollar FAQs What key factors drive the Canadian Dollar? The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar. How do the decisions of the Bank of Canada impact the Canadian Dollar? The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive. How does the price of Oil impact the Canadian Dollar? The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD. How does inflation data impact the value of the Canadian Dollar? While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar. How does economic data influence the value of the Canadian Dollar? Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.

The USD/CHF pair loses ground to near 0.8230 during the early European session on Friday. The Swiss Franc (CHF) edges higher against the  US Dollar (USD) due to persistent trade-related uncertainties.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/CHF softens to around 0.8230 in Friday’s early European session.Persistent trade-related uncertainties boost the safe-haven flows, supporting the Swiss Franc. US April Personal Consumption Expenditures (PCE) Price Index report will take center stage later on Friday. The USD/CHF pair loses ground to near 0.8230 during the early European session on Friday. The Swiss Franc (CHF) edges higher against the  US Dollar (USD) due to persistent trade-related uncertainties.A federal appeals court late Thursday temporarily paused a sweeping ruling against US President Donald Trump’s global tariffs while it takes more time to consider the administration’s request for a longer-lasting hold. Moreover, the Wall Street Journal (WSJ) reported that “US President Donald Trump's administration is considering an existing law that includes language allowing for tariffs of up to 15% for 150 days.” However, Trump has not made a final decision. The administration’s unpredictable policy, along with the geopolitical tensions in the Middle East and the ongoing Russia-Ukraine war, could support a safe-haven currency like the CHF and create a headwind for the pair. Following five consecutive rate cuts, the Swiss National Bank (SNB) is anticipated to cut its benchmark rate to 0% at the upcoming policy meeting on June 19. That would end a period of positive monetary policy, the lowest in almost three years. SNB President Martin Schlegel said that the Swiss central bank would go sub-zero if needed. That doesn’t appear imminent for now, with only a handful of SNB policymakers expecting such a move this year.Traders await the US April Personal Consumption Expenditures (PCE) Price Index report due later on Friday for fresh impetus. Also, the final reading of the Michigan Consumer Sentiment and the Chicago of Purchasing Managers Index (PMI) will be published. If the reports showed better-than-expected outcomes, this could lift the USD in the near term.  Swiss Franc FAQs What key factors drive the Swiss Franc? The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone. Why is the Swiss Franc considered a safe-haven currency? The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in. How do decisions of the Swiss National Bank impact the Swiss Franc? The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF. How does economic data influence the value of the Swiss Franc? Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate. How does the Eurozone monetary policy affect the Swiss Franc? As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

Spain Consumer Price Index (YoY) down to 1.9% in May from previous 2.2%

Spain Harmonized Index of Consumer Prices (MoM) came in at -0.1%, below expectations (0%) in May

Spain Consumer Price Index (MoM): 0% (May) vs previous 0.6%

Austria Producer Price Index (YoY) down to -0.2% in April from previous 0.8%

Austria Producer Price Index (MoM) declined to -0.9% in April from previous 0%

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Here is what you need to know on Friday, May 30:The US Dollar (USD) struggles to gather strength against its rivals following Thursday's volatile action as investors assess the latest headlines surrounding tariffs. The US economic calendar will feature Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve's preferred gauge of inflation, for April on Friday. US Dollar PRICE This week The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.16% 0.34% 0.92% 0.64% 1.03% 0.32% 0.27% EUR -0.16% 0.19% 0.80% 0.48% 0.87% 0.16% 0.12% GBP -0.34% -0.19% 0.31% 0.29% 0.68% -0.02% -0.06% JPY -0.92% -0.80% -0.31% -0.29% 0.08% -0.67% -0.67% CAD -0.64% -0.48% -0.29% 0.29% 0.40% -0.31% -0.34% AUD -1.03% -0.87% -0.68% -0.08% -0.40% -0.74% -0.74% NZD -0.32% -0.16% 0.02% 0.67% 0.31% 0.74% -0.03% CHF -0.27% -0.12% 0.06% 0.67% 0.34% 0.74% 0.03% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote). The USD outperformed its rivals early Thursday after the Court of International Trade announced that US President Trump's 'Liberation Day' tariffs will be blocked from going into effect. Later in the day, mixed macroeconomic data releases and the Court of Appeals for the Federal Circuit's decision to reinstate tariffs during the review process caused the USD to lose its strength. Moreover, US Treasury Secretary Scott Bessent said on Thursday that trade talks between the US and China are "a bit stalled" and added that finalizing a deal will likely require direct involvement of President Trump and Chinese President Xi Jinping. Finally, the Wall Street Journal reported that the Trump administration is considering allowing tariffs of up to 15% for 150 days.Meanwhile, the Federal Reserve (Fed) released a statement late Thursday, noting that Fed Chairman Jerome Powell met with President Trump and told him that the monetary policy will be set based on trackable data for the economy. After losing about 0.5% on Thursday, the USD Index clings to small recovery gains at around 99.50 in the European morning on Friday and US stock index futures trade modestly lower on the day after Wall Street's main indexes registered marginal gains on Thursday.The data from Germany showed earlier in the day that Retail Sales declined by 1.1% in April. This reading came in worse than the market expectation for a 0.2% increase. Later in the European session, Germany's Destatis will publish preliminary regional and nation-wide Consumer Price Index data for May. After closing in positive territory on Thursday, EUR/USD seems to have entered a consolidation phase at around 1.1350 early Friday.Following a sharp decline in the Asian session, Gold reversed its direction and closed higher on Thursday. XAU/USD struggles to keep its footing and retreats to the $3,300 area in the European morning on Friday.GBP/USD stays relatively quiet below 1.3500 after posting small gains on Thursday. Bank of England (BoE) Governor Andrew Bailey noted late on Thursday that the primary drivers behind the BoE's main reference rate remains the economic needs of the United Kingdom (UK), not external drivers such as the Trump administration's tariff policies.USD/JPY made a sharp U-turn after setting a new two-week high above 146.00 on Thursday and ended up losing about 0.5% for the day. The pair stays under modest bearish pressure and trades below 144.00 to start the European session. Tariffs FAQs What are tariffs? Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas. What is the difference between taxes and tariffs? Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers. Are tariffs good or bad? There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs. What is US President Donald Trump’s tariff plan? During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

Spain Harmonized Index of Consumer Prices (YoY) registered at 1.9%, below expectations (2%) in May

FX option expiries for May 30 NY cut at 10:00 Eastern Time vi a DTCC can be found below.

FX option expiries for May 30 NY cut at 10:00 Eastern Time vi a DTCC can be found below.EUR/USD: EUR amounts1.1250 974m1.1475 979m1.1500 1.1bUSD/JPY: USD amounts                                 140.00 2.4b143.00 3.3bGBP/USD: GBP amounts1.3455 390mUSD/CHF: USD amounts     0.8140 450m0.8225 480m0.8325 448mAUD/USD: AUD amounts0.6065 819m0.6500 598mUSD/CAD: USD amounts       1.3900 799m1.3980 786m1.4500 1.4bNZD/USD: NZD amounts0.6100 221m

AUD/JPY extends its losses for the second successive day, trading around 92.50 during the Asian hours on Friday. The currency cross depreciates nearly 0.50% as the Japanese Yen (JPY) gains ground against its peers after Tokyo’s core inflation came in stronger than expected.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}AUD/JPY loses ground as the Japanese Yen appreciates following Tokyo’s stronger core inflation data.The JPY draws support from safe-haven demand after the US federal Court ruling allowing Trump's tariffs to take effect.Australian Retail Sales fell 0.1% MoM in April, against the expected 0.3% growth.AUD/JPY extends its losses for the second successive day, trading around 92.50 during the Asian hours on Friday. The currency cross depreciates nearly 0.50% as the Japanese Yen (JPY) gains ground against its peers after Tokyo’s core inflation came in stronger than expected. The upbeat data reinforced expectations of the Bank of Japan’s (BoJ) 25 basis point rate hike in July.On Friday, the headline Tokyo Consumer Price Index (CPI) rose 3.4% year-over-year in May, as compared to 3.5% in the previous month. Meanwhile, Tokyo Core CPI excluding Fresh Food came in at 3.6% YoY, following a 3.4% increase in April. The index has surpassed median market forecasts for a 3.5% gain.The AUD/JPY cross loses ground as the safe-haven demand for the JPY strengthens after the US Court of Appeals for the Federal Circuit in Washington, on Thursday, temporarily allowed Trump's tariffs to take effect.On Wednesday, a three-judge panel at the Court of International Trade in Manhattan condemned Trump’s usage of the Carter-era International Emergency Economic Powers Act (IEEPA) to justify his international agenda, quoting it as exploitation of the president’s authority. The federal court found that Trump exceeded his authority in imposing broad import tariffs and declared the executive orders issued on April 2 unlawful.Moreover, the AUD/JPY cross depreciates as the Australian Dollar (AUD) struggles after the release of the seasonally adjusted Australian Retail Sales, which declined 0.1% month-over-month in April, against the expectations of remaining consistent at 0.3% growth. Meanwhile, the monthly Building Permits fell by 5.7%, against the expected increase of 3.1%. Tariffs FAQs What are tariffs? Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas. What is the difference between taxes and tariffs? Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers. Are tariffs good or bad? There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs. What is US President Donald Trump’s tariff plan? During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

EUR/GBP edges lower after registering more than 0.50% gains in the previous session, trading around 0.8420 during the Asian hours on Friday. The currency cross holds losses following the release of Germany’s Retail Sales data.

.fxs-event-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-event-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-event-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-event-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:12px}.fxs-event-module-section:last-child{border:none;margin-bottom:0}.fxs-event-module-header{color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px;margin:0;padding:4px 0;background-color:#fff;border:none;position:relative;padding-right:32px}.fxs-event-module-header label{cursor:pointer;display:block}.fxs-event-module-header label:after,.fxs-event-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-event-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-event-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]{display:none}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:after{transform:rotate(45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-event-module-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0;margin-top:8px}.fxs-event-module-content.why-matters{max-height:0;overflow:hidden;transition:all .3s ease-in-out}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-content.why-matters{max-height:1000px;margin-top:8px}.fxs-event-module-calendar-title{color:#1b1c23;font-size:17.6px;font-family:Roboto;font-style:normal;font-weight:700;line-height:20.8px;margin:4px 0 0 0}.fxs-event-module-calendar-title-description-wrapper{display:flex;flex-direction:column;gap:12px;border-bottom:1px solid #ececf1;padding-bottom:16px;margin-bottom:16px}.fxs-event-module-inner-calendar{padding:16px}.fxs-event-module-inner-calendar .fxs-event-module-section{padding:0}.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:12.8px;line-height:17px}.fxs-event-module-read-more{display:flex;align-items:center;align-content:center;gap:4px;color:#e4871b;font-size:12.8px;font-family:Roboto;font-style:normal;font-weight:700;line-height:17px;text-decoration:none}.fxs-event-module-read-more svg{width:16px;height:16px}.fxs-event-module-read-more:hover span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}EUR/GBP remains subdued following mixed German Retail Sales data released on Friday.The Euro could regain its ground as trade tension eases between the United States and the European Union.The GBP receives support after the IMF raised the UK GDP growth forecast for the current year to 1.2% from 1.1%.EUR/GBP edges lower after registering more than 0.50% gains in the previous session, trading around 0.8420 during the Asian hours on Friday. The currency cross holds losses following the release of Germany’s Retail Sales data. Traders shift their focus to Consumer Price Index (CPI) data due later in the day.German Retail Sales grew by 2.3% year-over-year in April, surpassing the expected 1.8% increase. The previous growth was at 3.3% (revised from a 2.2% rise). However, the monthly data showed a decline of 1.1% in April, against the expected 0.2% and the previous 0.9% gains.However, the EUR/GBP cross surged as the Euro (EUR) received support from easing trade tension between the United States (US) and the European Union (EU). President Trump delayed the tariff deadline on imports from the EU from June 1 to July 9. Meanwhile, the Brussels also agreed to accelerate trade talks with the United States to avoid a transatlantic trade war.On Wednesday, European Central Bank (ECB) Governing Council member Klaas Knot said that the current European inflation outlook is murky, challenging the central bank to engage in direct moves. On Tuesday, ECB policymaker François Villeroy de Galhau noted that the “policy normalization in the Euro area is probably not complete.”The EUR/GBP cross faces downward pressure as the Pound Sterling (GBP) attracts buyers following the International Monetary Fund (IMF) raising the United Kingdom (UK) Gross Domestic Product (GDP) growth forecast for the current year to 1.2% from 1.1%.The British Pound also draws support from fading market expectations of the Bank of England (BoE) reducing interest rates again in the June policy meeting. The dovish bets weaken surrounding the Bank of England’s (BoE) policy outlook following hotter-than-expected UK Consumer Price Index (CPI) and a robust growth in the UK Retail Sales data for April. Economic Indicator Retail Sales (YoY) The Retail Sales released by the Statistisches Bundesamt Deutschland is a measure of changes in sales of the German retail sector. It shows the performance of the retail sector in the short term. Percent changes reflect the rate of changes of such sales.The changes are widely followed as an indicator of consumer spending. The positive economic growth anticipates "Bullish" for the EUR, while a low reading is seen as negative, or bearish, for the EUR. Read more. Last release: Fri May 30, 2025 06:00 Frequency: Monthly Actual: 2.3% Consensus: 1.8% Previous: 2.2% Source: Federal Statistics Office of Germany

Retail Sales in Germany unexpectedly declined 1.1% month-over-month (MoM) in April, following the 0.9% revised growth (from -0.2%) reported in March, according to official data released by Destatis on Friday.

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}Retail Sales in Germany rose 2.3% over the year in April.EUR/USD keeps the red near 1.1350 following the mixed data.Retail Sales in Germany unexpectedly declined 1.1% month-over-month (MoM) in April, following the 0.9% revised growth (from -0.2%) reported in March, according to official data released by Destatis on Friday.The market forecast was for a 0.2% growth.On an annual basis, Retail Sales rose 2.3% in April vs. March’s 3.3% (revised from 2.2%) and 1.8% expected.Market reactionmore to come ...
Euro PRICE Today The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Japanese Yen. USD EUR GBP JPY CAD AUD NZD CHF USD 0.21% 0.11% -0.22% 0.07% 0.17% -0.21% 0.00% EUR -0.21% -0.07% -0.46% -0.14% 0.00% -0.09% -0.20% GBP -0.11% 0.07% -0.35% -0.05% 0.09% -0.18% -0.12% JPY 0.22% 0.46% 0.35% 0.29% 0.49% 0.17% 0.29% CAD -0.07% 0.14% 0.05% -0.29% 0.19% -0.15% -0.07% AUD -0.17% 0.00% -0.09% -0.49% -0.19% -0.10% -0.21% NZD 0.21% 0.09% 0.18% -0.17% 0.15% 0.10% -0.11% CHF -0.01% 0.20% 0.12% -0.29% 0.07% 0.21% 0.11% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

West Texas Intermediate (WTI) Oil price falls on Friday, early in the European session. WTI trades at $60.41 per barrel, down from Thursday’s close at $60.61.Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $63.08 after its previous daily close at $63.30.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} West Texas Intermediate (WTI) Oil price falls on Friday, early in the European session. WTI trades at $60.41 per barrel, down from Thursday’s close at $60.61.
Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $63.08 after its previous daily close at $63.30. WTI Oil FAQs What is WTI Oil? WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. What factors drive the price of WTI Oil? Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. How does inventory data impact the price of WTI Oil The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency. How does OPEC influence the price of WTI Oil? OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

South Africa Private Sector Credit up to 4.6% in April from previous 3.45%

Sweden Gross Domestic Product (YoY) below expectations (1.1%) in 1Q: Actual (0.9%)

Sweden Gross Domestic Product (QoQ) came in at -0.2% below forecasts (0%) in 1Q

Germany Retail Sales (MoM) came in at -1.1% below forecasts (0.2%) in April

Germany Retail Sales (YoY) above expectations (1.8%) in April: Actual (2.3%)

The United States (US) Bureau of Economic Analysis (BEA) is set to release the Personal Consumption Expenditures (PCE) Price Index data for April on Friday at 12:30 GMT. This index is the Federal Reserve’s (Fed) preferred measure of inflation.

.fxs-related-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-related-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}.fxs-related-module-related-link a{text-decoration:none;color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px}.fxs-related-module-related-link a:hover,.fxs-related-module-related-link:hover,.fxs-related-module-related-link:hover a{color:#e4871b}.fxs-related-module-related-link a:hover{text-decoration:none}@media (min-width:680px){.fxs-related-module-title{font-size:19.2px;line-height:27.2px}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The core Personal Consumption Expenditures Price Index is expected to rise 0.1% MoM and 2.5% YoY in April.Markets expect the Federal Reserve to hold the policy setting unchanged in June.Annual PCE inflation is forecast to edge lower to 2.2%.The United States (US) Bureau of Economic Analysis (BEA) is set to release the Personal Consumption Expenditures (PCE) Price Index data for April on Friday at 12:30 GMT. This index is the Federal Reserve’s (Fed) preferred measure of inflation.The core PCE Price Index, which excludes volatile food and energy prices, is projected to rise 0.1% on a monthly basis in April, after remaining unchanged in March. Over the last twelve months, the core PCE inflation is forecast to edge lower to 2.5% from 2.6%. Meanwhile, the headline annual PCE inflation is seen retreating to 2.2% from 2.3% in this period. Anticipating the PCE: Insights into the Fed's key inflation metricPCE inflation data is usually seen as a big market mover because it is taken into account by Fed officials when deciding on the next policy move. During the press conference following the May meeting, Fed Chairman Jerome Powell noted that inflation remains above their target and added that they expect upward pressure to persist. Citing “a great deal of uncertainty about tariffs,” Powell argued that the right thing for them to do is to await further clarity before taking the next policy step. Previewing the PCE inflation report, TD Securities said: “We look for core PCE prices to remain subdued in April, rising 0.1% m/m after printing flat in March—though last month's data will be revised higher. Headline PCE inflation should also come in soft at 0.06%. On a y/y basis, we look for core PCE inflation to rise 2.6%. We also expect personal spending to mean-revert after front-loading led to a 0.7% m/m surge in March.”New York Fed President John Williams said earlier in the week that he wants to avoid inflation becoming highly persistent because that could become permanent. Meanwhile, Minneapolis Fed President Neel Kashkari noted that he supports maintaining interest rates until there is some more clarity on the impact of higher tariffs on inflation. Related news FX daily: Dollar gets a lift from tariff ruling and FOMC insight Fed's Barkin flags economic caution as inflation and fiscal strain linger The Fed must be watching Japan with fascination How will the Personal Consumption Expenditures Price Index affect EUR/USD?Market participants are likely to react to an unexpected reading in the monthly core PCE Price Index, which is not distorted by base effects. A print of 0.3% or higher MoM could support the US Dollar (USD) with an immediate reaction. On the other hand, a reading of 0% or a negative print could have the opposite effect on the USD’s performance against its major rivals.According to the CME FedWatch Tool, markets currently see virtually no chance of a Fed rate cut in June, while pricing in about a 25% probability of a cut in July. Hence, the market positioning suggests that the USD has some room left on the upside if the monthly core PCE reading surprises to the upside. Conversely, investors could reassess the probability of a rate reduction in July if a soft PCE figure eases concerns that inflation remains sticky. Eren Sengezer, European Session Lead Analyst at FXStreet, shares a brief technical outlook for EUR/USD:“The Relative Strength Index (RSI) indicator on the daily chart holds slightly above 50, and EUR/USD fluctuates above the 20-day Simple Moving Average (SMA), reflecting a lack of seller interest. On the downside, 1.1200 (Fibonacci 23.6% retracement of the January-April uptrend, lower limit of the ascending regression channel) aligns as first support before 1.1015-1.1000 (Fibonacci 38.2% retracement, round level).”“Looking north, resistance levels could be spotted at 1.1400 (static level), 1.1500 (static level, round level) and 1.1575 (April 21 high).” Tariffs FAQs What are tariffs? Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas. What is the difference between taxes and tariffs? Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers. Are tariffs good or bad? There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs. What is US President Donald Trump’s tariff plan? During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

The EUR/JPY cross attracts some sellers to around 163.25 during the early European session on Thursday. The Japanese Yen (JPY) strengthens against the Euro (EUR) amid rising expectations that the Bank of Japan (BoJ) will continue raising interest rates this year.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/JPY trades in negative territory near 163.25 in Friday’s early European session. The positive view of the cross prevails above the key 100-day EMA, but the RSI indicator suggests neutral momentum.The first upside barrier is seen at 164.26; the initial support level is located at 162.10.The EUR/JPY cross attracts some sellers to around 163.25 during the early European session on Thursday. The Japanese Yen (JPY) strengthens against the Euro (EUR) amid rising expectations that the Bank of Japan (BoJ) will continue raising interest rates this year. Furthermore, the persistent trade-related uncertainties boost the safe-haven flows, benefitting the JPY. Technically, the bullish outlook of EUR/JPY remains intact on the daily chart, with the price holding above the key 100-day Exponential Moving Average (EMA). However, further consolidation cannot be ruled out as the Relative Strength Index (RSI) hovers around the midline. This suggests a neutral momentum in the near term. The immediate resistance level emerges at 164.26, the high of May 29. Further north, the next hurdle is seen at 164.75, the upper boundary of the Bollinger Band. A decisive break above this level could pave the way to 165.21, the high of May 13. On the flip side, the first downside target to watch is 162.10, the 100-day EMA. Extended losses could see a drop to 161.60, the lower limit of the Bollinger Band. The crucial support level for EUR/JPY is seen at 160.00, the psychological level and the low of April 8. EUR/JPY daily chart Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. How does the differential between Japanese and US bond yields impact the Japanese Yen? Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

Silver price (XAG/USD) offers its recent gains registered in the previous session, trading around $33.00 per troy ounce during the Asian hours on Friday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Silver price could find the immediate support at the 50-day EMA of $32.71.A bullish bias could revive as the 14-day RSI remains slightly above the 50 level.The initial resistance appears at the nine-day EMA of $33.10.Silver price (XAG/USD) offers its recent gains registered in the previous session, trading around $33.00 per troy ounce during the Asian hours on Friday. A neutral bias is prevailing as the technical analysis of the daily chart shows the price of the precious metal consolidating within a rectangular pattern.Additionally, the Silver price is hovering around the nine-day Exponential Moving Average (EMA), further highlighting that the short-term momentum is impartial. However, the 14-day Relative Strength Index (RSI) remains positioned slightly above the 50 level, indicating a potential for a bullish bias to emerge.Silver price may target the immediate support at the 50-day EMA of $32.71. A break below this level could weaken the medium-term price momentum and lead the price of the precious metal to approach the lower boundary of the rectangle at $31.90, followed by the six-week low at $31.65, which was recorded on May 15.On the upside, the XAG/USD pair tests the immediate barrier at the nine-day EMA of $33.10. A break above this level could improve the short-term price momentum and support the price of the grey metal to explore the region around the rectangle’s upper boundary at $33.60, aligned with the $33.69, the seven-week high reached on April 24. A break above this crucial resistance zone could cause the emergence of the bullish bias and lead the Silver price to approach the seven-month high of $34.59, last seen on March 28.XAG/USD: Daily Chart Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

The GBP/USD pair attracts fresh sellers following the previous day's goodish rebound from the 1.3415 area, or the weekly low amid a modest US Dollar (USD) uptick.

.fxs-event-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-event-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-event-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-event-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:12px}.fxs-event-module-section:last-child{border:none;margin-bottom:0}.fxs-event-module-header{color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px;margin:0;padding:4px 0;background-color:#fff;border:none;position:relative;padding-right:32px}.fxs-event-module-header label{cursor:pointer;display:block}.fxs-event-module-header label:after,.fxs-event-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-event-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-event-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]{display:none}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:after{transform:rotate(45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-event-module-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0;margin-top:8px}.fxs-event-module-content.why-matters{max-height:0;overflow:hidden;transition:all .3s ease-in-out}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-content.why-matters{max-height:1000px;margin-top:8px}.fxs-event-module-calendar-title{color:#1b1c23;font-size:17.6px;font-family:Roboto;font-style:normal;font-weight:700;line-height:20.8px;margin:4px 0 0 0}.fxs-event-module-calendar-title-description-wrapper{display:flex;flex-direction:column;gap:12px;border-bottom:1px solid #ececf1;padding-bottom:16px;margin-bottom:16px}.fxs-event-module-inner-calendar{padding:16px}.fxs-event-module-inner-calendar .fxs-event-module-section{padding:0}.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:12.8px;line-height:17px}.fxs-event-module-read-more{display:flex;align-items:center;align-content:center;gap:4px;color:#e4871b;font-size:12.8px;font-family:Roboto;font-style:normal;font-weight:700;line-height:17px;text-decoration:none}.fxs-event-module-read-more svg{width:16px;height:16px}.fxs-event-module-read-more:hover span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}GBP/USD ticks lower amid the emergence of some USD dip-buying ahead of the US PCE Price Index.  The divergent Fed-BoE policy expectations should help limit any meaningful downfall for the major.Traders might also opt to wait for the release of the US inflation report before placing fresh bets.The GBP/USD pair attracts fresh sellers following the previous day's goodish rebound from the 1.3415 area, or the weekly low amid a modest US Dollar (USD) uptick. Spot prices currently trade around the 1.3475-1.3470 region, down 0.15% for the day, though the downside seems limited as traders might opt to wait for the release of the US Personal Consumption Expenditure (PCE) Price Index.Heading into the key data risk, some repositioning trade assists the USD to regain positive traction following the previous day's dramatic turnaround from over a one-week high and exerts some pressure on the GBP/USD pair. However, bets that the Federal Reserve (Fed) will lower borrowing costs further in 2025 and US fiscal concerns might cap the USD. Furthermore, speculations that the Bank of England (BoE) would pause at its next meeting on June 18 and take its time before lowering borrowing costs further should act as a tailwind for the British Pound (GBP).Meanwhile, oscillators on hourly charts have been gaining some negative traction and back the case for a further intraday slide. However, technical indicators on the daily chart are holding comfortably in positive territory. Moreover, the overnight bounce from the 38.2% Fibonacci retracement level of the recent move up from the monthly low favors the GBP/USD bulls. Hence, any subsequent fall might still be seen as a buying opportunity near the 1.3425-1.3415 region, which if broken might prompt some technical selling and pave the way for deeper losses.The GBP/USD pair might then extend this week's corrective pullback from the 1.3600 neighborhood – the highest level since February 2022 – and test the 1.3375-1.3370 confluence. The latter comprises the 100-period Simple Moving Average (SMA) on the daily chart and the 50% Fibo. level, which, in turn, should act as a key pivotal point. A convincing break below will negate the near-term constructive outlook and shift the bias in favor of bearish traders, which should set the stage for a slide towards the 1.3300 mark, or the 61.8% Fibo. retracement level.On the flip side, bulls might need to wait for sustained strength and acceptance above the 1.3500 psychological mark before placing fresh bets. The GBP/USD pair might then climb to the next relevant hurdle near the 1.3540-1.3545 region and then make a fresh attempt towards conquering the 1.3600 round figure. Some follow-through buying will be seen as a fresh trigger for bullish traders and set the stage for the resumption of a two-month-old uptrend.GBP/USD 4-hour chart Economic Indicator Core Personal Consumption Expenditures - Price Index (YoY) The Core Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The PCE Price Index is also the Federal Reserve’s (Fed) preferred gauge of inflation. The YoY reading compares the prices of goods in the reference month to the same month a year earlier. The core reading excludes the so-called more volatile food and energy components to give a more accurate measurement of price pressures." Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish. Read more. Next release: Fri May 30, 2025 12:30 Frequency: Monthly Consensus: 2.5% Previous: 2.6% Source: US Bureau of Economic Analysis Why it matters to traders? After publishing the GDP report, the US Bureau of Economic Analysis releases the Personal Consumption Expenditures (PCE) Price Index data alongside the monthly changes in Personal Spending and Personal Income. FOMC policymakers use the annual Core PCE Price Index, which excludes volatile food and energy prices, as their primary gauge of inflation. A stronger-than-expected reading could help the USD outperform its rivals as it would hint at a possible hawkish shift in the Fed’s forward guidance and vice versa.

Japan Construction Orders (YoY) up to 52.7% in April from previous 3.5%

Gold price (XAU/USD) struggles to capitalize on the previous day's strong recovery move from the $3,246-3,245 region, or over a one-week low, and attracts fresh sellers during the Asian session on Friday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Gold price meets with a fresh supply on Friday amid the emergence of some USD dip-buying.Trade tensions, geopolitical risks, and Fed rate cut bets should limit losses for the commodity.Traders look to the US PCE Price Index for Fed rate cut bets and a fresh impetus.Gold price (XAU/USD) struggles to capitalize on the previous day's strong recovery move from the $3,246-3,245 region, or over a one-week low, and attracts fresh sellers during the Asian session on Friday. The US Dollar (USD) regains some positive traction following Thursday's dramatic intraday turnaround, amid some repositioning trade ahead of the pivotal inflation report from the US. This, in turn, is seen undermining demand for the bullion. However, a combination of factors should act as a tailwind for the commodity and help limit deeper losses. A federal appeals court on Thursday paused a separate trade court ruling that blocked US President Donald Trump's tariffs. This adds to a layer of uncertainty, which, along with persistent geopolitical risks, should offer some support to the safe-haven Gold price. Moreover, the growing acceptance that the Federal Reserve (Fed) will lower borrowing costs further in 2025 might keep a lid on any meaningful USD appreciation and support prospects for the emergence of some dip-buying around the non-yielding yellow metal, warranting caution for bears. Daily Digest Market Movers: Gold price drifts lower as repositioning trade ahead of US PCE leads to a modest USD uptickThe overnight sharp US Dollar retracement slide lacks follow-through as bears seem reluctant ahead of the release of the crucial US Personal Consumption Expenditure (PCE) Price Index later this Friday. A federal appeals court on Thursday temporarily reinstated US President Donald Trump's sweeping trade tariffs, a day after a separate trade court deemed them illegal and ordered an immediate block. Meanwhile, the Wall Street Journal (WSJ) reported late Thursday that the Trump administration is considering an existing law that includes language allowing for tariffs of up to 15% for 150 days.Kremlin spokesman Dmitry Peskov said on Thursday, that Russia, so far, has now received a response from Ukraine over its proposal to hold the next round of peace talks in Istanbul next week. White House spokeswoman Karoline Leavitt told reporters that Israel has agreed to a US ceasefire proposal. Hamas said that the terms did not meet its demands, keeping geopolitical risks in play.Traders have been pricing in the possibility that the Federal Reserve (Fed) will step in to support the economy and deliver at least two 25 basis points interest rate cuts by the end of this year. However, Minutes of the FOMC May meeting released on Wednesday revealed a consensus to maintain the wait-and-see stance amid the uncertainty over the economic outlook and trade policies. Meanwhile, Chicago Fed President Austan Goolsbee noted that the US central bank could return to a situation where interest rates could come down if tariffs are avoided by a deal or otherwise.Moreover, San Francisco Fed President Mary Daly said that two rate cuts this year would make sense if the labor market stays solid and inflation falls, but the range of possible risks is large.Separately, Dallas President Lorie Logan said that risks to employment and inflation goals are roughly balanced. If the balance shifts, the Fed is well prepared to respond, Logan added further.Fed Chair Jerome Powell, on the other hand, met with the President on Thursday and reiterated that decisions on monetary policy are based on the incoming economic data from the US.Hence, Friday's crucial inflation data will play a key role in influencing expectations about the Fed's rate-cut path, which will drive the USD and provide a fresh impetus to the XAU/USD pair. Gold price could extend downward trajectory to overnight swing low, around$3,246-3,245From a technical perspective, the overnight failure near the $3,325-3,326 horizontal resistance and a subsequent slide below the $3,300 mark favor the XAU/USD bears. Moreover, oscillators on the 4-hour chart have again started gaining negative traction and back the case for a further intraday depreciating move for the Gold price. Hence, some follow-through weakness towards the $3,280 static support, en route to the overnight swing low around the $3,246-3,245 region, looks like a distinct possibility. A convincing break below the latter should pave the way for deeper losses and expose the $3,200 round figure.On the flip side, the $3,325-3,326 area might continue to act as an immediate hurdle ahead of the $3,345-3,350 supply zone. A sustained strength beyond could negate the negative outlook and trigger a fresh bout of a short-covering move, which should allow the Gold price to reclaim the $3,400 mark. The momentum could extend further towards the next relevant barrier near the $3,432-3,434 region. Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

Gold prices fell in India on Friday, according to data compiled by FXStreet.

.fxs-related-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-related-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}.fxs-related-module-related-link a{text-decoration:none;color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px}.fxs-related-module-related-link a:hover,.fxs-related-module-related-link:hover,.fxs-related-module-related-link:hover a{color:#e4871b}.fxs-related-module-related-link a:hover{text-decoration:none}@media (min-width:680px){.fxs-related-module-title{font-size:19.2px;line-height:27.2px}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Gold prices fell in India on Friday, according to data compiled by FXStreet. The price for Gold stood at 9,030.83 Indian Rupees (INR) per gram, down compared with the INR 9,096.39 it cost on Thursday. The price for Gold decreased to INR 105,335.90 per tola from INR 106,098.50 per tola a day earlier. Unit measure Gold Price in INR 1 Gram 9,030.83 10 Grams 90,313.78 Tola 105,335.90 Troy Ounce 280,890.40   2025 Gold Forecast Guide [PDF] Download your free copy of the 2025 Gold Forecast Gold’s daily market movers: Plunging US yields, soft US Dollar boosts XAU/USD US Treasury bond yields are plummeting following the release of US data. The 10-year Treasury note yield dives by four and a half basis points (bps) to 4.30%. Meanwhile, US real yields followed suit, also down four bps at 2.11%. US Initial Jobless Claims for the week ending May 24 rose by 240K, up from 226K a week before and exceeding forecasts of 230K. US GDP's second estimate for the first quarter of 2021 came at -0.2% QoQ contraction, up from the preliminary estimate of -0.3%. Federal Reserve minutes cited uncertainty about the potential impact of tariffs on the economy, with officials adopting a patient stance due to high risks of elevated inflation and unemployment. Policymakers acknowledged some stagflation risks as they noted the “Committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken.” They added that they are waiting for the “net economic effects of the array of changes to government policies to become clearer.” Data revealed that Gold imports to Switzerland from the US rose to its highest level since at least 2012 in April. Money markets suggest that traders are pricing in 49 basis points of easing toward the end of the year, following the soft US Initial Jobless Claims report, according to Prime Market Terminal data. FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.   Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up. (An automation tool was used in creating this post.)

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, edges higher to near 99.40 during the Asian trading hours on Friday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}US Dollar Index rebounds to around 99.40 in Friday’s Asian session. Trump administration considered allowing tariffs of up to 15% for 150 days. The focus will be on the US PCE inflation data, due later on Friday. The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, edges higher to near 99.40 during the Asian trading hours on Friday. However, the potential upside for the Greenback might be limited, and the DXY is set for a fifth-straight monthly decline on trade and fiscal uncertainty. Thursday's US weekly Jobless Claims came in weaker than expected, which weighs on the US Dollar. The number of Americans filing new applications for jobless benefits for the week ending May 24 rose to 240K, compared to the previous week of 226K (revised from 227K), the US Department of Labor (DOL) showed on Thursday. This figure came in above the market consensus of 230K. Meanwhile, Continuing Jobless Claims increased by 26K to reach 1.919M for the week ending May 17.The Wall Street Journal (WSJ) reported late Thursday, “US President Donald Trump's administration is considering an existing law that includes language allowing for tariffs of up to 15% for 150 days.” However, the administration has not made a final decision, and the uncertainty around tariffs might contribute to the DXY’s downside in the near term.Money markets suggest that traders have priced in nearly 49 basis points (bps) of rate reductions toward the end of the year, following the soft US Initial Jobless Claims report, according to Prime Market Terminal data. San Francisco Fed President Mary Daly said on Thursday that policymakers might cut interest rates twice this year, but rates should remain steady for now to ensure inflation is on track to reach the Fed's 2% target.Traders will take more cues from the US April Personal Consumption Expenditures (PCE) Price Index report later on Friday, as it might offer some hints about the Federal Reserve’s (Fed) policy trajectory. In case of a stronger-than-expected outcome, this could help limit the DXY’s losses. Additionally, the final reading of the Michigan Consumer Sentiment and the Chicago Purchasing Managers Index (PMI) will be released. San Francisco Fed President Mary Daly is scheduled to speak later in the same day.  US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

Bank of England (BoE) policymaker Alan Taylor told the Financial Times (FT) on Friday, “I thought we needed to be on a lower [monetary] policy path.”

Bank of England (BoE) policymaker Alan Taylor told the Financial Times (FT) on Friday, “I thought we needed to be on a lower [monetary] policy path.”Additional quotesI’m seeing more risk piling up on the downside scenario because of global developments.

A trade war is going to be negative for growth.

Higher inflation isn't coming from demand & supply pressures; for most part, coming out of one-time tax & administered price changes.

West Texas Intermediate (WTI) Oil price extends its losses for the second successive session, trading around $60.30 per barrel during the Asian hours on Friday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}WTI price depreciates due to weaker market sentiment following the ruling allowing Trump tariffs from taking effect.OPEC+ may decide on a July Oil production hike on Saturday.EIA Crude Oil Stocks Change showed a 2.8-million-barrel decline in the previous week.West Texas Intermediate (WTI) Oil price extends its losses for the second successive session, trading around $60.30 per barrel during the Asian hours on Friday. Crude Oil prices struggle on dampened market sentiment after the US Court of Appeals for the Federal Circuit in Washington temporarily allowed the most sweeping of President Donald Trump's tariffs on Thursday.On Wednesday, a three-judge panel at the Court of International Trade in Manhattan halted US President Donald Trump from imposing "Liberation Day" tariffs from taking effect. The federal court found that Trump exceeded his authority in imposing broad import tariffs and declared the executive orders issued on April 2 unlawful.The OPEC+ group, Members of the Organization of the Petroleum Exporting Countries and its allies, is expected to meet on Saturday to decide on a July oil production hike. The group is also trying to ensure that countries exceeding their agreed production, such as Kazakhstan, cut their output.Moreover, the demand outlook for crude Oil was also hit by the contraction in the United States (US) economy. The preliminary Gross Domestic Product Annualized contracted by 0.2% in the first quarter, slightly better than the expected decline of 0.3%.However, Energy Information Administration (EIA) Crude Oil Stocks Change showed a surprise 2.8-million-barrel draw in US crude inventories for the week ending on May 23, driven by strong seasonal demand. WTI Oil FAQs What is WTI Oil? WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. What factors drive the price of WTI Oil? Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. How does inventory data impact the price of WTI Oil The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency. How does OPEC influence the price of WTI Oil? OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

In a Reuters interview on Friday, Reserve Bank of New Zealand (RBNZ) Assistant Governor Karen Silk said that “interest rates are in 2.5%-3.5% neutral band.”

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} In a Reuters interview on Friday, Reserve Bank of New Zealand (RBNZ) Assistant Governor Karen Silk said that “interest rates are in 2.5%-3.5% neutral band.”Additional quotesImpact of past cuts yet to flow through, strong export sector are arguments for not going below neutral.

Data will decide when or if we cut further from here.

"Enormous" uncertainty around US trade policy, cannot react to every twist and turn.Market reactionAt the time of writing, NZD/USD Is trading modestly flat on the day near 0.5960.
RBNZ FAQs What is the Reserve Bank of New Zealand? The Reserve Bank of New Zealand (RBNZ) is the country’s central bank. Its economic objectives are achieving and maintaining price stability – achieved when inflation, measured by the Consumer Price Index (CPI), falls within the band of between 1% and 3% – and supporting maximum sustainable employment. How does the Reserve Bank of New Zealand’s monetary policy influence the New Zealand Dollar? The Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee (MPC) decides the appropriate level of the Official Cash Rate (OCR) according to its objectives. When inflation is above target, the bank will attempt to tame it by raising its key OCR, making it more expensive for households and businesses to borrow money and thus cooling the economy. Higher interest rates are generally positive for the New Zealand Dollar (NZD) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken NZD. Why does the Reserve Bank of New Zealand care about employment? Employment is important for the Reserve Bank of New Zealand (RBNZ) because a tight labor market can fuel inflation. The RBNZ’s goal of “maximum sustainable employment” is defined as the highest use of labor resources that can be sustained over time without creating an acceleration in inflation. “When employment is at its maximum sustainable level, there will be low and stable inflation. However, if employment is above the maximum sustainable level for too long, it will eventually cause prices to rise more and more quickly, requiring the MPC to raise interest rates to keep inflation under control,” the bank says. What is Quantitative Easing (QE)? In extreme situations, the Reserve Bank of New Zealand (RBNZ) can enact a monetary policy tool called Quantitative Easing. QE is the process by which the RBNZ prints local currency and uses it to buy assets – usually government or corporate bonds – from banks and other financial institutions with the aim to increase the domestic money supply and spur economic activity. QE usually results in a weaker New Zealand Dollar (NZD). QE is a last resort when simply lowering interest rates is unlikely to achieve the objectives of the central bank. The RBNZ used it during the Covid-19 pandemic.

NZD/USD has trimmed its recent gains following weaker data from New Zealand released on Friday.

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a} NZD/USD has trimmed its recent gains following weaker data from New Zealand released on Friday.The ANZ–Roy Morgan Consumer Confidence declined to 92.9 in May, down from 98.3 in April, weakening consumer sentiment.The US Dollar struggles after the Court of Appeals temporarily allowed Trump's tariffs to take effect.NZD/USD holds ground after trimming daily gains, trading around 0.5960 during the Asian hours on Friday. The pair offered its gains after weaker economic data was released from New Zealand. Traders will likely observe the US April Personal Consumption Expenditures (PCE) Price Index report, scheduled to be released on Friday.The ANZ–Roy Morgan Consumer Confidence fell to 92.9 in May, down from 98.3 in April, dampening consumer sentiment, driven by the stubborn high inflation expectations. This scenario continues to weigh on household sentiment. The seasonally adjusted Building Permits depreciated by 15.6% month-on-month in April, as compared to a previous increase of 10.7% (revised from 9.6%) in March.The NZD/USD pair may regain its ground as the US Dollar (USD) continues to suffer after the release of mixed United States (US) economic data on Thursday. Additionally, the Greenback lost its ground after the US Court of Appeals for the Federal Circuit in Washington temporarily allowed the most sweeping of President Donald Trump's tariffs on Thursday. On Wednesday, a three-judge panel at the Court of International Trade in Manhattan blocked Trump tariffs from taking effect.The preliminary Gross Domestic Product Annualized fell by 0.2% in the Q1, less bad than the expected decline of 0.3%. Personal Consumption Expenditures (PCE) remained consistent at a 3.6% increase quarter-over-quarter in Q1, as expected. Meanwhile, Core PCE rose 3.4% QoQ against the expected 3.5% increase.US Initial Jobless Claims for the week ending May 24 rose to 240K, worse than the previous week’s 226K (revised from 227K). This figure came in above the market consensus of 230K. Additionally, Continuing Jobless Claims rose by 26K to reach 1.919M for the week ending May 17. New Zealand Dollar PRICE Today The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.16% 0.12% -0.20% 0.12% 0.29% -0.02% -0.02% EUR -0.16% -0.01% -0.39% -0.04% 0.17% 0.15% -0.18% GBP -0.12% 0.01% -0.37% -0.01% 0.19% -0.02% -0.15% JPY 0.20% 0.39% 0.37% 0.32% 0.59% 0.34% 0.25% CAD -0.12% 0.04% 0.01% -0.32% 0.26% -0.01% -0.14% AUD -0.29% -0.17% -0.19% -0.59% -0.26% -0.02% -0.34% NZD 0.02% -0.15% 0.02% -0.34% 0.01% 0.02% -0.32% CHF 0.02% 0.18% 0.15% -0.25% 0.14% 0.34% 0.32% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).

The EUR/USD pair struggles to capitalize on the previous day's solid bounce from the 1.1200 neighborhood, or a one-and-a-half week low, and trades with a mild negative bias during the Asian session on Friday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/USD ticks lower on Thursday and stalls the previous day’s bounce from over a one-week low.A turnaround in the global risk sentiment lends some support to the USD and weighs on the pair.Traders now look to the US PCE Price Index for some impetus ahead of the ECB next Thursday.The EUR/USD pair struggles to capitalize on the previous day's solid bounce from the 1.1200 neighborhood, or a one-and-a-half week low, and trades with a mild negative bias during the Asian session on Friday. Spot prices currently hover around the mid-1.1300s, down nearly 0.15% for the day, though the downside remains cushioned. Following the previous day's dramatic turnaround, the US Dollar (USD) attracts some dip-buyers amid the flight to safety and turns out to be a key factor acting as a headwind for the EUR/USD pair. A federal appeals court paused a separate trade court ruling and reinstated US President Donald Trump's sweeping trade tariffs late Thursday. This adds a layer of uncertainty in the markets and revives demand for traditional safe-haven assets. The USD uptick, however, lacks bullish conviction amid concerns about the worsening US fiscal condition and expectations that the Federal Reserve (Fed) will lower borrowing costs again in 2025. The shared currency, on the other hand, continues to draw some support from US President Donald Trump's decision to delay the imposition of tariffs on the European Union (EU), which contributes to limiting the downside for the EUR/USD pair. Moving ahead, the spotlight turns to the release of the US Personal Consumption Expenditure (PCE) Price Index. The crucial data will play a key role in influencing expectations about the Fed's rate-cut path, which, in turn, will drive the USD demand and provide some impetus to the EUR/USD pair heading into the weekend. The market focus will then shift to the crucial European Central Bank (ECB) monetary policy meeting next Thursday. Euro FAQs What is the Euro? The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

The Indian Rupee (INR) gains ground on Friday, snapping the three-day losing streak. The downbeat US economic data and concerns that a US court ruling would change the outlook for US tariffs undermine the US Dollar (USD).

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Indian Rupee posts modest gains in Friday’s Asian session. The downbeat US economic data and uncertainty of Trump's policies weigh on the US Dollar. Traders brace for India’s Q1 GDP and US April PCE inflation reports, which are due later on Friday.The Indian Rupee (INR) gains ground on Friday, snapping the three-day losing streak. The downbeat US economic data and concerns that a US court ruling would change the outlook for US tariffs undermine the US Dollar (USD). A decline in crude oil prices provides some support to the Indian currency, as India is the world's third-largest oil consumer. However, the renewed importer USD bids during the month-end could help limit the pair’s losses. Traders will closely watch India’s Gross Domestic Product (GDP) for the first quarter (Q1) due later on Friday. On the US docket, the US April Personal Consumption Expenditures (PCE) Price Index report will take center stage. Also, the final reading of the Michigan Consumer Sentiment and the Chicago of Purchasing Managers Index (PMI) will be published. Indian Rupee remains firm as traders await key economic dataThe Reserve Bank of India (RBI) has projected India’s real GDP growth at 6.5% for the financial year 2025-26 amid global uncertainties.US Initial Jobless Claims for the week ending May 24  climbed to 240K, compared to the previous week of 226K (revised from 227K), according to the US Department of Labor (DOL) on Thursday. This figure came in above the market consensus of 230K. Continuing Jobless Claims increased by 26K to reach 1.919M for the week ending May 17.San Francisco Fed President Mary C. Daly said late Thursday that the central bank needs a modestly or moderately restrictive policy to keep bringing down inflation.Dallas Fed President Lorie Logan stated the monetary policy is in a good place, adding that risks to employment and inflation goals are ‘roughly balanced.’USD/INR’s bearish outlook remains in playThe Indian Rupee trades in positive territory on the day. The negative outlook of the USD/INR remains intact, characterized by the price holding below the key 100-day Exponential Moving Average (EMA) on the daily timeframe. Further consolidation cannot be ruled out in the near term as the 14-day Relative Strength Index (RSI) hovers around the midline.The initial support level for USD/INR emerges at 84.78, the low of May 26. Red candlesticks below the mentioned level could drag the pair lower to 84.61, the low of May 12. The next downside target to watch is 84.00, the psychological level and the lower limit of the trend channel.On the bright side, the key upside barrier is located in the 85.60-85.70 zone, representing the 100-day EMA and the upper boundary of the trend channel. A solid break above this level could open the door for a run toward 86.10, the high of May 22.  Indian Rupee FAQs What are the key factors driving the Indian Rupee? The Indian Rupee (INR) is one of the most sensitive currencies to external factors. The price of Crude Oil (the country is highly dependent on imported Oil), the value of the US Dollar – most trade is conducted in USD – and the level of foreign investment, are all influential. Direct intervention by the Reserve Bank of India (RBI) in FX markets to keep the exchange rate stable, as well as the level of interest rates set by the RBI, are further major influencing factors on the Rupee. How do the decisions of the Reserve Bank of India impact the Indian Rupee? The Reserve Bank of India (RBI) actively intervenes in forex markets to maintain a stable exchange rate, to help facilitate trade. In addition, the RBI tries to maintain the inflation rate at its 4% target by adjusting interest rates. Higher interest rates usually strengthen the Rupee. This is due to the role of the ‘carry trade’ in which investors borrow in countries with lower interest rates so as to place their money in countries’ offering relatively higher interest rates and profit from the difference. What macroeconomic factors influence the value of the Indian Rupee? Macroeconomic factors that influence the value of the Rupee include inflation, interest rates, the economic growth rate (GDP), the balance of trade, and inflows from foreign investment. A higher growth rate can lead to more overseas investment, pushing up demand for the Rupee. A less negative balance of trade will eventually lead to a stronger Rupee. Higher interest rates, especially real rates (interest rates less inflation) are also positive for the Rupee. A risk-on environment can lead to greater inflows of Foreign Direct and Indirect Investment (FDI and FII), which also benefit the Rupee. How does inflation impact the Indian Rupee? Higher inflation, particularly, if it is comparatively higher than India’s peers, is generally negative for the currency as it reflects devaluation through oversupply. Inflation also increases the cost of exports, leading to more Rupees being sold to purchase foreign imports, which is Rupee-negative. At the same time, higher inflation usually leads to the Reserve Bank of India (RBI) raising interest rates and this can be positive for the Rupee, due to increased demand from international investors. The opposite effect is true of lower inflation.

The Japanese Yen (JPY) attracts strong follow-through buying for the second straight day on Friday and recovers further from a two-week low touched against its American counterpart the previous day.

.fxs-event-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-event-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-event-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-event-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:12px}.fxs-event-module-section:last-child{border:none;margin-bottom:0}.fxs-event-module-header{color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px;margin:0;padding:4px 0;background-color:#fff;border:none;position:relative;padding-right:32px}.fxs-event-module-header label{cursor:pointer;display:block}.fxs-event-module-header label:after,.fxs-event-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-event-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-event-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]{display:none}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:after{transform:rotate(45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-event-module-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0;margin-top:8px}.fxs-event-module-content.why-matters{max-height:0;overflow:hidden;transition:all .3s ease-in-out}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-content.why-matters{max-height:1000px;margin-top:8px}.fxs-event-module-calendar-title{color:#1b1c23;font-size:17.6px;font-family:Roboto;font-style:normal;font-weight:700;line-height:20.8px;margin:4px 0 0 0}.fxs-event-module-calendar-title-description-wrapper{display:flex;flex-direction:column;gap:12px;border-bottom:1px solid #ececf1;padding-bottom:16px;margin-bottom:16px}.fxs-event-module-inner-calendar{padding:16px}.fxs-event-module-inner-calendar .fxs-event-module-section{padding:0}.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:12.8px;line-height:17px}.fxs-event-module-read-more{display:flex;align-items:center;align-content:center;gap:4px;color:#e4871b;font-size:12.8px;font-family:Roboto;font-style:normal;font-weight:700;line-height:17px;text-decoration:none}.fxs-event-module-read-more svg{width:16px;height:16px}.fxs-event-module-read-more:hover span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}The Japanese Yen attracts buyers for the second straight day amid a combination of supporting factors. A federal appeals court reinstates Trump’s tariffs and revives safe-haven demand. Japan’s upbeat data reaffirms bets for more BoJ rate hikes this year and lends additional support to the JPY. The Japanese Yen (JPY) attracts strong follow-through buying for the second straight day on Friday and recovers further from a two-week low touched against its American counterpart the previous day. The global risk sentiment took a hit after a federal appeals court on Thursday paused a recent decision to block US President Donald Trump’s sweeping tariffs. This is evident from a generally weaker tone around the equity markets and helps revive demand for traditional safe-haven assets, including the JPY. Meanwhile, Japan's upbeat macro data released earlier today, including strong Tokyo consumer inflation figures, backs the case for more interest rate hikes by the Bank of Japan (JPY) and lends additional support to the JPY. The US Dollar (USD), on the other hand, consolidates following the previous day's dramatic turnaround amid concerns about the worsening US fiscal situation and bets that the Federal Reserve (Fed) will stick to its easing bias. This further contributes to the USD/JPY pair's ongoing downfall. The Japanese Yen draws support from the global flight to safety and hawkish BoJ expectationsA federal appeals court paused a separate trade court ruling and reinstated US President Donald Trump's sweeping trade tariffs late Thursday. This adds a layer of uncertainty in the markets and tempers investors' appetite for riskier assets, which, in turn, benefits the safe-haven Japanese Yen. The Statistics Bureau of Japan reported this Friday that the headline Consumer Price Index (CPI) in Tokyo – Japan's capital city – rose 3.4% from a year earlier in May as compared to 3.5% in the previous month. Meanwhile, a gauge that excludes volatile fresh food climbed a more than two-year high.In fact, the Core CPI came in at 3.6% YoY following a 3.4% rise in April and exceeded median market forecasts for a 3.5% gain. Furthermore, a separate index that strips away the effects of both fresh food and fuel costs rose 3.3% in May in the year to May after a 3.1% rise recorded in April.The Tokyo CPI has exceeded the Bank of Japan's 2% target for three straight years and pointed to sticky food inflation. This will keep the central bank under pressure to hike rates further, though the uncertainty over US tariffs might force the BoJ to maintain the wait-and-see approach. Separate data showed that Japan’s Industrial Production shrank 0.9% in April, marking a reversal from a 0.2% rise in March. The contraction, however, was smaller than anticipated. Moreover, a survey revealed that manufacturers expect output to increase by 9.0% in May and drop by 3.4% in June.Adding to this, Japan's Retail Sales rose more than expected, by 3.3% YoY in April, compared to 3.1% in the prior month. This comes on top of expectations that bumper wage hikes will boost private consumption and backs the case for further policy normalization by the BoJ. From the US, the second Q1 GDP estimate published by the Bureau of Economic Analysis on Thursday showed that the economy contracted by 0.2% annualized rate during the January-March period. The reading, however, was better than the 0.3% fall initially expected and consensus forecast. The US Department of Labor reported that the number of Americans who filed for unemployment insurance for the first time, known as Initial Jobless Claims, climbed to 240K for the week ending May 24. This marked a substantial increase from the previous week's revised tally of 226K.The market focus now shifts to the release of the US Personal Consumption Expenditure (PCE) Price Index. The crucial data will influence market expectations about the Fed's rate-cut path, which, in turn, should provide some meaningful impetus to the US Dollar and the USD/JPY pair. USD/JPY seems vulnerable to extending the downfall further below the 144.00 round figureFrom a technical perspective, the overnight failure near the 61.8% Fibonacci retracement level of the recent downfall from the monthly peak and the subsequent fall favors the USD/JPY bears. Moreover, negative oscillators on daily/hourly charts suggest that the path of least resistance for spot prices is to the downside. Some follow-through selling below the 143.45 region will reaffirm the bearish outlook and drag the pair to the 143.00 mark. The downward trajectory could extend further towards the 142.40 intermediate support en route to the 142.10 area, or the monthly low touched on Tuesday.On the flip side, the 144.25-144.30 region now seems to act as an immediate hurdle, above which the USD/JPY pair could aim to reclaim the 145.00 psychological mark. A sustained strength beyond the latter should pave the way for a move toward the next relevant hurdle near the 145.65 horizontal zone en route to the 146.00 round figure and the overnight swing high, around the 146.25-146.30 region. Economic Indicator Tokyo CPI ex Fresh Food (YoY) The Tokyo Consumer Price Index (CPI), released by the Statistics Bureau of Japan on a monthly basis, measures the price fluctuation of goods and services purchased by households in the Tokyo region excluding fresh food, whose prices often fluctuate depending on the weather. The index is widely considered as a leading indicator of Japan’s overall CPI as it is published weeks before the nationwide reading. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish. Read more. Last release: Thu May 29, 2025 23:30 Frequency: Monthly Actual: 3.6% Consensus: 3.5% Previous: 3.4% Source: Statistics Bureau of Japan

Citing people familiar with the matter, the Wall Street Journal (WSJ) reported late Thursday, “US President Donald Trump's administration is considering an existing law that includes language allowing for tariffs of up to 15% for 150 days.”

Citing people familiar with the matter, the Wall Street Journal (WSJ) reported late Thursday, “US President Donald Trump's administration is considering an existing law that includes language allowing for tariffs of up to 15% for 150 days.”“The administration has not made a final decision and it could wait to impose any plans,” the WSJ reported.

The Australian Dollar (AUD) edges lower against the US Dollar (USD) on Friday, retracing its recent gains from the previous session. The AUD/USD pair remains subdued following the release of disappointing economic data from Australia.

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a} .fxs-event-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-event-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-event-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-event-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:12px}.fxs-event-module-section:last-child{border:none;margin-bottom:0}.fxs-event-module-header{color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px;margin:0;padding:4px 0;background-color:#fff;border:none;position:relative;padding-right:32px}.fxs-event-module-header label{cursor:pointer;display:block}.fxs-event-module-header label:after,.fxs-event-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-event-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-event-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]{display:none}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:after{transform:rotate(45deg) translateX(4px)}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-event-module-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0;margin-top:8px}.fxs-event-module-content.why-matters{max-height:0;overflow:hidden;transition:all .3s ease-in-out}.fxs-event-module-container input[type=checkbox]:checked+.fxs-event-module-section .fxs-event-module-content.why-matters{max-height:1000px;margin-top:8px}.fxs-event-module-calendar-title{color:#1b1c23;font-size:17.6px;font-family:Roboto;font-style:normal;font-weight:700;line-height:20.8px;margin:4px 0 0 0}.fxs-event-module-calendar-title-description-wrapper{display:flex;flex-direction:column;gap:12px;border-bottom:1px solid #ececf1;padding-bottom:16px;margin-bottom:16px}.fxs-event-module-inner-calendar{padding:16px}.fxs-event-module-inner-calendar .fxs-event-module-section{padding:0}.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:12.8px;line-height:17px}.fxs-event-module-read-more{display:flex;align-items:center;align-content:center;gap:4px;color:#e4871b;font-size:12.8px;font-family:Roboto;font-style:normal;font-weight:700;line-height:17px;text-decoration:none}.fxs-event-module-read-more svg{width:16px;height:16px}.fxs-event-module-read-more:hover span{text-decoration:underline}.fxs-event-module-release{margin:0;display:flex;flex-direction:column;gap:2px}.fxs-event-module-release>p{font-size:12.8px;font-family:Roboto;font-style:normal;line-height:17px;margin:0}.fxs-event-module-release>p>strong{color:#8c8d91;font-weight:700}.fxs-event-module-release>p>span{color:#8c8d91;font-weight:400}.fxs-event-module-release>p>a{color:#e4871b;font-weight:700;text-decoration:none}.fxs-event-module-release>p>a:hover>span{text-decoration:underline}.fxs-event-module-inner-calendar .fxs-event-module-container{margin:16px 0 0 0;border-top:1px solid #ececf1;padding:12px 0 0 0}@media (min-width:680px){.fxs-event-module-inner-calendar .fxs-event-module-header{font-size:14.72px;line-height:20px}.fxs-event-module-release p{font-size:14.72px;line-height:20px}.fxs-event-module-read-more{font-size:14.72px;line-height:20px}.fxs-event-module-calendar-title{font-size:22.4px;line-height:25.6px}.fxs-event-module-title{font-size:19.2px;line-height:27.2px}.fxs-event-module-header{font-size:19.2px;line-height:25.92px}.fxs-event-module-content{font-size:16px;line-height:21.6px}}The Australian Dollar holds losses following the disappointing economic data released on Friday.Australia’s Retail Sales fell 0.1% MoM in April, against the expectations of remaining consistent at a 0.3% increase.The US Dollar struggles due to trade uncertainty and mixed US economic data.The Australian Dollar (AUD) edges lower against the US Dollar (USD) on Friday, retracing its recent gains from the previous session. The AUD/USD pair remains subdued following the release of disappointing economic data from Australia.Australia’s seasonally adjusted Retail Sales declined by 0.1% month-over-month in April, against the expectations of remaining consistent at 0.3% growth. Meanwhile, the monthly Building Permits fell by 5.7%, against the expected increase of 3.1%.The AUD/USD pair continues to receive downward pressure after a three-judge panel at the Court of International Trade in Manhattan halted US President Donald Trump from imposing "Liberation Day" tariffs from taking effect. The federal court found that Trump exceeded his authority in imposing broad import tariffs and declared the executive orders issued on April 2 unlawful. However, Trump appears unlikely to back down, posting on his social media app Truth Social that he is on a "Mission from God".In Australia’s close trading partner, China, Securities Times reports that analysts believe that the People’s Bank of China (PBoC) may boost Pledged Supplementary Lending (PSL). This move would offer low-cost, long-term funding to policy banks, which in turn support government-prioritized sectors like housing, urban redevelopment, and major infrastructure projects.Australian Dollar depreciates despite weaker US Dollar amid trade uncertainty, mixed dataThe US Dollar Index (DXY), which measures the value of the Greenback against six major currencies, is extending its losses for the second consecutive day and trading at around 99.20 at the time of writing. The US Dollar (USD) depreciated after the release of mixed United States (US) economic data. Traders will likely observe the US April Personal Consumption Expenditures (PCE) Price Index report, scheduled to be released on Friday.The preliminary Gross Domestic Product Annualized contracted by 0.2% in the first quarter, slightly better than the expected decline of 0.3%. Personal Consumption Expenditures (PCE) remained consistent at a 3.6% increase quarter-over-quarter in Q1, as expected. Meanwhile, Core PCE climbed 3.4% QoQ against the expected 3.5% increase.The US Department of Labor (DOL) reported that US Initial Jobless Claims for the week ending May 24 rose to 240K, worse than the previous week’s 226K (revised from 227K). This figure came in above the market consensus of 230K. Additionally, Continuing Jobless Claims rose by 26K to reach 1.919M for the week ending May 17.Federal Open Market Committee's (FOMC) Minutes for the latest policy meeting, released on Wednesday, indicated that Federal Reserve (Fed) officials broadly agreed that heightened economic uncertainty justified their patient approach to interest-rate adjustments. Fed officials emphasized the need to keep interest rates unchanged for some time, as recent policy shifts cloud the US economic outlook.The US fiscal deficit could increase further when Trump's “One Big Beautiful Bill” is on the way to the Senate floor for voting, increasing the risk of bond yields staying higher for longer. Higher bond yields can keep borrowing costs higher for consumers, businesses, and governments. Trump’s bill is expected to increase the deficit by $3.8 billion, as it would deliver tax breaks on tip income and US-manufactured car loans, according to the Congressional Budget Office (CBO).US Senator Ron Johnson told CNN on Sunday that "I think we have enough votes to stop the process until the president gets serious about spending reduction and reducing the deficit.” Johnson added, “My primary focus now is spending. This is completely unacceptable. Current projections are a $2.2 trillion per year deficit.”Moody’s downgraded the US credit rating from Aaa to Aa1, following similar downgrades by Fitch Ratings in 2023 and Standard & Poor’s in 2011. Moody’s now projects US federal debt to climb to around 134% of GDP by 2035, up from 98% in 2023, with the budget deficit expected to widen to nearly 9% of GDP. This deterioration is attributed to rising debt-servicing costs, expanding entitlement programs, and falling tax revenues.The Trump administration has halted some sales of jet engines, semiconductors, and certain chemicals to China. The New York Times cited two familiar sources saying that this action is a response to China’s recent export restrictions on exports of critical minerals to the US.The AUD could face challenges as the Reserve Bank of Australia (RBA) is expected to deliver more rate cuts in the upcoming policy meetings. The central bank acknowledged progress in curbing inflation and warned that US-China trade barriers pose downside risks to economic growth. Governor Michele Bullock stated that the RBA is prepared to take additional action if the economic outlook deteriorates sharply, raising the prospect of future rate cuts.Australian Dollar remains below nine-day EMA near 0.6450 barrierThe AUD/USD pair is trading around 0.6430 on Friday, indicating a potential of weakening bullish bias. The technical analysis of the daily chart suggests that the pair is hovering around the ascending channel’s lower boundary. The short-term price momentum weakens as the pair remains below the nine-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) is positioned slightly above the 50 mark, suggesting a bullish bias is still active.The AUD/USD pair could test the immediate barrier at the nine-day EMA of 0.6439, followed by the 0.6537, a six-month high recorded on May 26. A breach above this crucial resistance zone could revive the bullish bias and support the pair to approach the upper boundary of the ascending channel around 0.6640.On the downside, a break below the channel could lead the AUD/USD pair to test the 50-day EMA at 0.6385. A breach below this level could weaken the medium-term price momentum and put downward pressure on the pair to approach 0.5914, the lowest since March 2020.AUD/USD: Daily Chart Australian Dollar PRICE Today The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Japanese Yen. USD EUR GBP JPY CAD AUD NZD CHF USD 0.07% 0.03% -0.27% 0.07% 0.22% -0.10% -0.11% EUR -0.07% -0.02% -0.38% -0.01% 0.18% 0.15% -0.18% GBP -0.03% 0.02% -0.35% 0.02% 0.21% 0.00% -0.15% JPY 0.27% 0.38% 0.35% 0.34% 0.58% 0.33% 0.22% CAD -0.07% 0.00% -0.02% -0.34% 0.23% -0.04% -0.18% AUD -0.22% -0.18% -0.21% -0.58% -0.23% -0.03% -0.36% NZD 0.10% -0.15% -0.00% -0.33% 0.04% 0.03% -0.33% CHF 0.11% 0.18% 0.15% -0.22% 0.18% 0.36% 0.33% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote). Economic Indicator Retail Sales s.a. (MoM) The Retail Sales data, released by the Australian Bureau of Statistics on a monthly basis, measures the value of goods sold by retailers in Australia. Changes in Retail Sales are widely followed as an indicator of consumer spending. Percent changes reflect the rate of changes in such sales, with the MoM reading comparing sales values in the reference month with the previous month. Generally, a high reading is seen as bullish for the Australian Dollar (AUD), while a low reading is seen as bearish. Read more. Last release: Fri May 30, 2025 01:30 Frequency: Monthly Actual: -0.1% Consensus: 0.3% Previous: 0.3% Source: Australian Bureau of Statistics Why it matters to traders? The primary gauge of Australia’s consumer spending, the Retail Sales, is released by the Australian Bureau of Statistics (ABS) about 35 days after the month ends. It accounts for approximately 80% of total retail turnover in the country and, therefore, has a significant bearing on inflation and GDP. This leading indicator has a direct correlation with inflation and the growth prospects, impacting the Reserve Bank of Australia’s (RBA) interest rates decision and AUD valuation. The stats bureau uses the forward factor method, ensuring that the seasonal factors are not distorted by COVID-19 impacts.

Japan’s Chief Trade Negotiator and Economy Minister Ryosei Akazawa said on Friday that he “plans to meet US Treasury Secretary Scott Bessent and others for Japan-US tariff talks.”

Japan’s Chief Trade Negotiator and Economy Minister Ryosei Akazawa said on Friday that he “plans to meet US Treasury Secretary Scott Bessent and others for Japan-US tariff talks.”Further commentsWill take appropriate actions while gathering necessary information when asked about US court blocking Trump’s tariffs.

Mutual trust deepening between PM Ishiba and President Trump through phone talks two weeks in row.

Australia’s Retail Sales, a measure of the country’s consumer spending, declined 0.1% MoM in April, compared to a rise of 0.3% in March, the official data published by the Australian Bureau of Statistics (ABS) showed on Friday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Australia’s Retail Sales, a measure of the country’s consumer spending, declined 0.1% MoM in April, compared to a rise of 0.3% in March, the official data published by the Australian Bureau of Statistics (ABS) showed on Friday.The reading came in below the market expectations of 0.3%. Market reaction to Australia’s Retail Sales dataAt the time of writing, the AUD/USD pair is down 0.15% on the day at 0.6430. Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

Australia Private Sector Credit (MoM) registered at 0.7% above expectations (0.5%) in April

Australia Retail Sales s.a. (MoM) below forecasts (0.3%) in April: Actual (-0.1%)

Australia Private Sector Credit (YoY) increased to 6.7% in April from previous 6.5%

Australia Building Permits (MoM) came in at -5.7%, below expectations (3.1%) in April

On Friday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1848 as compared to the previous day's fix of 7.1907 and 7.1859 Reuters estimate.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} On Friday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1848 as compared to the previous day's fix of 7.1907 and 7.1859 Reuters estimate. PBOC FAQs What does the People's Bank of China do? The primary monetary policy objectives of the People's Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market. Who owns the PBoC? The PBoC is owned by the state of the People's Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts. What are the main policy tools used by the PBoC? Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi. Are private banks allowed in China? Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector.

The USD/CAD pair trades in a negative territory around 1.3810 during the early Asian session on Friday. The concerns that a US court ruling would change the outlook for US tariffs weigh on the Greenback.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/CAD weakens to around 1.3810 in Friday’s early Asian session. US Initial Jobless Claims increased to 240K last week.The US PCE inflation and Canadian GDP reports will be the highlights later on Friday. The USD/CAD pair trades in a negative territory around 1.3810 during the early Asian session on Friday. The concerns that a US court ruling would change the outlook for US tariffs weigh on the Greenback. Investors will closely monitor the US April Personal Consumption Expenditures (PCE) Price Index and the Canadian Gross Domestic Product (GDP) data, which are due later on Friday. A federal appeals court late Thursday temporarily paused a sweeping ruling against US President Donald Trump’s global tariffs while it takes more time to consider the administration’s request for a longer-lasting hold. The Trump administration’s unpredictable policy could exert some selling pressure on the US Dollar (USD) against the Canadian Dollar (CAD) in the near term. Furthermore, the downbeat US economic data, including US Initial Jobless Claims, drag the USD lower. The number of Americans filing new applications for jobless benefits for the week ending May 24 climbed to 240K, compared to the previous week of 226K (revised from 227K), the US Department of Labor (DOL) showed on Thursday. This figure came in above the market consensus of 230K.  Meanwhile, a decline in Crude Oil prices might undermine the commodity-linked Loonie and help limit the pair’s losses. It’s worth noting that Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value.  Canadian Dollar FAQs What key factors drive the Canadian Dollar? The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar. How do the decisions of the Bank of Canada impact the Canadian Dollar? The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive. How does the price of Oil impact the Canadian Dollar? The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD. How does inflation data impact the value of the Canadian Dollar? While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar. How does economic data influence the value of the Canadian Dollar? Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.

Federal Reserve Bank of Dallas President Lorie Logan gave opening remarks and participated in a moderated conversation before the Greater Waco Member Appreciation event.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Federal Reserve Bank of Dallas President Lorie Logan gave opening remarks and participated in a moderated conversation before the Greater Waco Member Appreciation event.Key quotesRisks to employment and inflation goals ‘roughly balanced.’
For now, monetary policy is in a good place.
Could take ‘quite some time’ to see shift in balance of risks.
If balance shifts, the Fed is well prepared to respond.
Labor market strong, inflation trending gradually to 2%.
Stimulative fiscal policy could boost demand.Market reaction The US Dollar Index (DXY) is trading 0.05% lower on the day at 99.30, as of writing. Fed FAQs What does the Federal Reserve do, how does it impact the US Dollar? Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. How often does the Fed hold monetary policy meetings? The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis. What is Quantitative Easing (QE) and how does it impact USD? In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar. What is Quantitative Tightening (QT) and how does it impact the US Dollar? Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.

Bank of Japan (BoJ) Governor Kazuo Ueda said on Friday that the BoJ's financial position won't affect its short-term rate decision, which will focus on achieving the price target.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Bank of Japan (BoJ) Governor Kazuo Ueda said on Friday that the BoJ's financial position won't affect its short-term rate decision, which will focus on achieving the price target.Key quotesThe Bank of Japan's financial position won't affect its short-term rate decision, which will focus on achieving the price target.
Sets short-term policy rate to achieve inflation goal.
We are aware of firms’ aggressive price- and wage-setting behavior continuing.
Board’s downgrade in inflation forecasts reflects pressure on global growth from trade policy uncertainty, slowing pace of cost-push inflation and recent sharp falls in crude oil prices.Market reaction  As of writing, the USD/JPY pair was down 0.38% on the day at 143.68. Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. How does the differential between Japanese and US bond yields impact the Japanese Yen? Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

Japan Retail Trade s.a (MoM) increased to 0.5% in April from previous -1.2%

Japan Retail Trade (YoY) registered at 3.3% above expectations (3.1%) in April

Japan Industrial Production (YoY): 0.7% (April) vs previous 1%

Japan Industrial Production (MoM) above expectations (-1.4%) in April: Actual (-0.9%)

Federal Reserve Bank of San Francisco President Mary C. Daly said late Thursday that the central bank needs modestly or moderately restrictive policy to keep bringing down inflation.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Federal Reserve Bank of San Francisco President Mary C. Daly said late Thursday that the central bank needs modestly or moderately restrictive policy to keep bringing down inflation.Key quotesTwo rate cuts this year would make sense if the labor market stays solid and inflation falls, but the range of possible risks is large.
Currently tilt toward a focus on inflation.
Need a modestly or moderately restrictive policy to keep bringing down inflation.
Looking for signs inflation is continuing to fall, or if it’s rising or staying sticky.
Also looking for any weakening in the job market, not seeing any.
Not facing policy tradeoffs now.
The Fed is agile, and policy is well-positioned.
Businesses are not stalled in the face of uncertainty, though taking fewer risks.
Keeping the Fed policy rate steady is an active decision.Market reaction The US Dollar Index (DXY) is trading 0.11% lower on the day at 99.25, as of writing. Fed FAQs What does the Federal Reserve do, how does it impact the US Dollar? Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. How often does the Fed hold monetary policy meetings? The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis. What is Quantitative Easing (QE) and how does it impact USD? In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar. What is Quantitative Tightening (QT) and how does it impact the US Dollar? Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.

Japanese life insurers cut protection for their foreign assets against a stronger Japanese Yen (JPY) to a fresh 14-year low, signaling subdued expectations of a sustained rally in the JPY, per Bloomberg.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Japanese life insurers cut protection for their foreign assets against a stronger Japanese Yen (JPY) to a fresh 14-year low, signaling subdued expectations of a sustained rally in the JPY, per Bloomberg.Nine of Japan’s biggest life insurers collectively lowered bullish JPY wagers tied to their foreign investment holdings to 44.4% at the end of the fiscal half in March from 45.2% six months earlier.Market reaction As of writing, the USD/JPY pair was down 0.30% on the day at 143.80. Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. How does the differential between Japanese and US bond yields impact the Japanese Yen? Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

The headline Tokyo Consumer Price Index (CPI) for May rose 3.4% YoY as compared to 3.5% in the previous month, the Statistics Bureau of Japan showed on Friday.

The headline Tokyo Consumer Price Index (CPI) for May rose 3.4% YoY as compared to 3.5% in the previous month, the Statistics Bureau of Japan showed on Friday.

Japan Tokyo Consumer Price Index (YoY) dipped from previous 3.5% to 3.4% in May

Japan Unemployment Rate meets forecasts (2.5%) in April

Japan Tokyo CPI ex Fresh Food (YoY) above forecasts (3.5%) in May: Actual (3.6%)

Japan Jobs / Applicants Ratio meets forecasts (1.26) in April

The AUD/USD pair gains ground to near 0.6445 during the early Asian session on Friday. The US Dollar (USD) edges lower against the Australian Dollar (AUD) due to the resurgence of trade uncertainty and disappointing US economic data.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}AUD/USD gains traction to around 0.6445 in Friday’s early Asian session. The renewed tariff concerns weigh on the US Dollar. Rising bets of further RBA rate cuts might cap the pair’s upside. The AUD/USD pair gains ground to near 0.6445 during the early Asian session on Friday. The US Dollar (USD) edges lower against the Australian Dollar (AUD) due to the resurgence of trade uncertainty and disappointing US economic data. The US April Personal Consumption Expenditures (PCE) Price Index report Will be in the spotlight later on Friday. A US federal court on Wednesday blocked US President Donald Trump's "Liberation Day" tariffs from going into effect. A federal trade court ruled Trump didn't have the authority to impose across-the-board duties on imports from nations that sell more to the US than they buy. However, a federal appeals court late Thursday temporarily paused a sweeping ruling against Trump’s global tariffs while it takes more time to consider the administration’s request for a longer-lasting hold. The uncertainty of Trump's policies and concerns that tariffs will slow the economy drag the Greenback lower and create a tailwind for the pair.Data released by the US Department of Labor (DOL) on Thursday showed that US Initial Jobless Claims for the week ending May 24  climbed to 240K, compared to the previous week of 226K (revised from 227K). This figure came in above the market consensus of 230K. Additionally, Continuing Jobless Claims increased by 26K to reach 1.919M for the week ending May 17.On the other hand, the expectation that the Reserve Bank of Australia (RBA) will deliver more rate cuts in the upcoming policy meetings could undermine the Aussie. The RBA acknowledged progress in curbing inflation and warned that US-China trade barriers pose downside risks to economic growth. RBA Governor Michele Bullock noted that the central bank will take additional action if the economic outlook worsens, raising the chance of further rate cuts. Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

GBP/USD made a choppy relief rally on Thursday, jumping back into the 1.3500 handle as markets gear up for the latest batch of United States (US) Personal Consumption Expenditure Price Index (PCE) inflation figures due on Friday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}GBP/USD rallied to reclaim the 1.3500 handle as US PCE inflation data looms.Tariff turmoil is set to continue weighing on market sentiment after Thursday’s appeals circus.US PCE inflation data set to release on Friday, investors growing nervous of tariff impacts.GBP/USD made a choppy relief rally on Thursday, jumping back into the 1.3500 handle as markets gear up for the latest batch of United States (US) Personal Consumption Expenditure Price Index (PCE) inflation figures due on Friday. US President Donald Trump’s “Worldwide Retaliatory Tariff Orders” faced its first significant legal challenge after being ruled against by US trade court judges. The tariffs have been allowed to stand for the time being as the Trump administration appeals the decision. However, investors have a long, grinding road ahead as they continue to await some semblance of policy clarity from the Trump administration.Read more: Trump tariffs reinstated during appeals processUS PCE inflation from April is slated for Friday, and stands as the week’s final key data release. Median market forecasts expect annualized figures to continue declining, but the front end of the curve is expected to begin rising as immediate price impacts of Trump tariffs begin to break through into headline datasets. April’s PCE inflation index is expected to ease to 2.5% YoY from 2.6%, while the MoM figure is forecast to rise back to 0.1% from March’s flat print of 0.0%. The brunt of tariff impacts will take some time to become fully realized in inflation metrics, and the majority of imposed import taxes didn’t come into effect until the tail end of the PCE reference period.GBP/USD price forecastGBP/USD snapped a two-day losing streak to retest the 1.3500 region on Thursday. Cable remains buoyed near multi-year highs following a stellar 12.3% run bottom-to-top from January’s lows near 1.2100.A technical pullback runs the risk of clipping a rising trendline near 1.3400, and the odds remain tilted in favor of bidders. GBP/USD continues to trade well north of the 50-day Exponential Moving Average (EMA) near 1.3220.GBP/USD daily chart
Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

South Korea Service Sector Output climbed from previous -0.3% to -0.1% in April

South Korea Industrial Output (YoY) above expectations (4.2%) in April: Actual (4.9%)

South Korea Industrial Output Growth below expectations (0.5%) in April: Actual (-0.9%)

United States (US) Secretary of the Treasury Scott Bessent stated the Trump administration's intention to "stabilize" the US's debt-to-Gross Domestic Product (GDP) ratio by 2028, and insisted that trade agreements will be announced in the weeks ahead.

United States (US) Secretary of the Treasury Scott Bessent stated the Trump administration's intention to "stabilize" the US's debt-to-Gross Domestic Product (GDP) ratio by 2028, and insisted that trade agreements will be announced in the weeks ahead.President Donald Trump was elected on a campaign platform to have the US's debt issue resolved "within months", and White House staffers have been noting that trade deals that have been strong-armed out of other countries by Trump tariffs are "days away" for weeks.Key highlightsPresident can establish trade agenda for the United States.

courts obstructing tariff revenue.

trading partners approaching us in good faith

trading partners approaching us positively, have observed no shift in their stances in the past 48 hours

Couple of large deals are near.

Japanese delegation visiting office Monday.

Judiciary has no right to comment on tariffs.

Expect China discussions to continue in coming weeks.

Considers a conversation between Trump and Xi in the future.

China negotiations bit slow.

Tariffs not distinct from budget.

Anticipate additional China discussions in upcoming weeks.

European Union in movement as well.

Predicts federal deficit will be smaller year on year than last.

Elon Musk completed significant tasks, DOGE will not end with Elon.

Treasury includes several Department of Government Employees on a permanent basis.

By 2028, we will stabilize debt to gross domestic product.

Sympathetic to deficit hawks.

AUD/JPY loses some ground on Thursday ahead of the beginning of Friday’s Asian session, falls over 0.19%, below the 93.00 figure, yet retains its sideways bias as the cross pair remains above the Ichimoku Cloud (Kumo).

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}AUD/JPY retreats as risk-off sentiment lifts Yen; closes below key 93.00 threshold.Break below Tenkan-sen at 92.75 could open path toward support at 91.50 and 90.81.Bulls need to reclaim 93.86 to challenge 94.00 and resume upward momentum.AUD/JPY loses some ground on Thursday ahead of the beginning of Friday’s Asian session, falls over 0.19%, below the 93.00 figure, yet retains its sideways bias as the cross pair remains above the Ichimoku Cloud (Kumo).AUD/JPY Price Forecast: Technical outlookThe AUD/JPY reached a two-week high of 93.86 on Thursday, but as market participants turned risk-averse, Yen’s strength sent the cross drifting lower and finished the day with losses. Additionally, the daily close below 93.00 has opened the path for lower prices.If AUD/JPY drops below the Tenkan-sen of 92.75, the next support would be a May 27 low of 92.12. Once surpassed, the next key support levels would be the May 23 swing low of 91.63, the top of the Ichimoku cloud (Kumo) at 91.50, and the Senkou Span B at 90.81.For a bullish reversal, buyers need to climb past 93.00 and break stir resistance at 93.86, the May 29 high. Once surpassed, the 94.00 figure would be up for grabs.AUD/JPY Price Chart – Daily Australian Dollar PRICE This week The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies this week. Australian Dollar was the strongest against the Japanese Yen. USD EUR GBP JPY CAD AUD NZD CHF USD -0.05% 0.22% 1.02% 0.53% 0.69% 0.19% 0.17% EUR 0.05% 0.27% 1.10% 0.58% 0.74% 0.24% 0.23% GBP -0.22% -0.27% 0.51% 0.30% 0.46% -0.03% -0.03% JPY -1.02% -1.10% -0.51% -0.48% -0.34% -0.88% -0.85% CAD -0.53% -0.58% -0.30% 0.48% 0.17% -0.33% -0.33% AUD -0.69% -0.74% -0.46% 0.34% -0.17% -0.53% -0.49% NZD -0.19% -0.24% 0.03% 0.88% 0.33% 0.53% -0.00% CHF -0.17% -0.23% 0.03% 0.85% 0.33% 0.49% 0.00% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

New Zealand ANZ – Roy Morgan Consumer Confidence dipped from previous 98.3 to 92.9 in May

Bank of England (BoE) Governor Andrew Bailey noted late on Thursday that the primary drivers behind the BoE's main reference rate remains the economic needs of the United Kingdom (UK), not external drivers such as the Trump administration's tariff policies.

Bank of England (BoE) Governor Andrew Bailey noted late on Thursday that the primary drivers behind the BoE's main reference rate remains the economic needs of the United Kingdom (UK), not external drivers such as the Trump administration's tariff policies.Key highlightsRaising the UK's potential growth rate critical.

We take a gradual and careful approach as the economy is hard to read.

Spend a lot of time examining risks from market fragilities, including bonds.

Not useful to ask if dollar will remain reserve currency, may see some rebalancing but not anywhere near dollar losing its status.

Rate cuts uncertainty prevalent.

UK labour market data pretty much in line with our expectations.

Evidence on United Kingdom is in line with our expectations.

United Kingdom issues are key drivers of policy.

UK needs, not tariffs and trade, will be key driver for UK rates.

Strengthening in food inflation but not alone in that.

Slowing wage increase trend still remains.

Less volatile segments of United Kingdom inflation are gradually decreasing, very slowly.
Scroll Top
Risk warning: Trading is risky. Your capital is at risk. Exinity Limited is regulated by FSC (Mauritius).