Silver price falls some 0.70% on Tuesday, yet it has trimmed some of its earlier losses that pushed the grey’s metal below $33.00 to hit a two-day low of $32.77. At the time of writing, the XAG/USD trades at $33.29, remains down in the day.
The Australian Dollar (AUD) strengthens against the Japanese Yen (JPY), extending modest gains for the third consecutive day. At the time of writing, the AUD/JPY cross is pushing higher to trade near 93.00 during the late American sessions on Tuesday, up nearly 1% on the day.
The EUR/USD pair retreats below 1.1400 for the second consecutive day, driven by a recovery in the US Dollar (USD) following an upbeat Consumer Confidence report. Additionally, soft inflation data in France undermined the shared currency, which trades on Tuesday at 1.1335, down over 0.40%.
The US Dollar (USD) regained composure and managed to leave behind two daily retracements in a row on turnaround Tuesday, as US investors returned to their desks following Monday’s Memorial Day holiday.
The Canadian Dollar (CAD) lost ground against the US Dollar (USD) on Tuesday, snapping a six-session winning streak for the Loonie and pushing USD/CAD back above 1.3750 as trade headlines dominate the market cycle.
The Australian Dollar (AUD) is facing renewed pressure against the US Dollar (USD) on Tuesday as the Greenback rebounds across the board following mixed US economic data and a resurgence in market liquidity.
The US Dollar Index (DXY), which tracks the value of the US Dollar (USD), is pushing upward as market participants respond to fading trade tensions. Markets are drawing fresh optimism from President Trump's decision to delay the implementation of 50% tariffs on EU imports.
The Dow Jones climbed alongside other major equities on Tuesday, with investor sentiment snapping back after last week’s declines.
United States 2-Year Note Auction: 3.955% vs 3.795%
Bundesbank President Joachim Nagel struck a measured tone on the path ahead for interest rates, saying it remains too soon to decide on a further cut next month.
Philip Lane, the chief economist of the European Central Bank, indicated that although the majority of factors suggested a continued decline in euro area inflation, there were also concerns, such as the possibility of unsuccessful EU-US trade negotiations, that could lead to an increase in inflation
The New Zealand Dollar (NZD) is losing ground against the US Dollar (USD) on Tuesday, slipping back after a failed attempt to break above the key 0.6000 level.
Gold prices posted losses of nearly 2%, falling below the $3,300 figure, as market participants cheered US President Donald Trump's decision to delay tariffs on European Union goods.
The British Pound (GBP) edges lower against the US Dollar, retreating from a three-year high, with the GBP/USD pair trading around 1.3510 during the American session on Tuesday.
United States Dallas Fed Manufacturing Business Index climbed from previous -35.8 to -15.3 in May
The Indian Rupee (INR) depreciates against the US Dollar (USD) on Tuesday amid month-end Dollar demand from importers and a steady Greenback.
- US CB Consumer Confidence Index rebounds in May.
The AUD/USD pair extends correction to near 0.6450 during North American trading hours on Tuesday from its six-month high of 0.6537 posted the previous day.
Richmond Fed President Thomas Barkin highlighted persistent uncertainty in the US economy, pointing to muted business activity, fiscal drag, and inflation expectations weighing on sentiment. While consumer spending remains resilient for now, policymakers are closely watching the evolving data.
"I was extremely satisfied with the 50% tariff allotment on the European Union, especially since they were slow walking (to put it mildly!), our negotiations with them," United States (US) President Donald Trump said in a post published on Truth Social on Tuesday.
Gold continues to trade within a narrowing consolidation range on Tuesday, following a record-setting rally earlier this year. After reaching an all-time high in April, the market has shifted into a holding pattern characterized by a descending wedge formation, reflecting a tightening momentum.
Silver price (XAG/USD) dives almost 2% to near $32.80 during North American trading hours on Tuesday.
United States Housing Price Index (MoM) below expectations (0.2%) in March: Actual (-0.1%)
United States S&P/Case-Shiller Home Price Indices (YoY) below forecasts (4.5%) in March: Actual (4.1%)
Durable Goods Orders in the United States (US) declined by 6.3%, or $19.9 billion, in April to $296.3 billion, the US Census Bureau reported on Tuesday.
United States Durable Goods Orders above expectations (-7.9%) in April: Actual (-6.3%)
United States Durable Goods Orders ex Transportation came in at 0.2%, above expectations (-0.1%) in April
United States Durable Goods Orders ex Defense fell from previous 10.4% to -7.5% in April
The Mexican Peso (MXN) is losing momentum against the US Dollar (USD) a few hours before the US session starts, as the Greenback attempts a recovery.
Brazil Mid-month Inflation registered at 0.36%, below expectations (0.44%) in May
The Japanese Yen (JPY) is losing ground against the US Dollar (USD), retreating from a four-week high of 142.11 reached during early Asian trading hours on Tuesday.
Gold is in high demand as a safe haven.
Japanese Yen (JPY) is weak, trading down 0.8% against the US Dollar (USD) and underperforming all of the G10 currencies in an environment of broad-based USD strength, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Pound Sterling (GBP) is soft, down 0.15% against the US Dollar (USD) while showing relative outperformance against the G10 currencies, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The US Dollar has bounced up from three-week lows, favoured by a brighter market mood.
China's Gold imports from Hong Kong rose to almost 59 tons in April, nearly three times as much as in March and as high as a year ago, Commerzbank's commodity analyst Barbara Lambrecht notes.
The Canadian Dollar (CAD) has slipped back amid the broader rebound in the USD vs US Dollar (YSD). USD gains have taken funds back to the mid/upper 1.37s and largely reflect the rebound in the USD rather than any CAD-negative development, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The oil market is showing strength ahead of the OPEC+ meeting and the production decision due on Saturday by the eight cartel members who voluntarily cut production and are now considering a further significant withdrawal of these cuts in July, Commerzbank's commodity analyst Barbara Lambrecht notes
The US Dollar Index (DXY), which tracks the performance of the Greenback’s value against six major currencies, is tying up some minor gains, trading around 99.40 at the time of writing this Tuesday.
Euro (EUR) is soft, down 0.4% vs. the US Dollar (USD) and a mid-performer among the G10 as we head into Tuesday’s NA session.
Markets should gear up a bit more after yesterday’s subdued session and early trends suggest the USD may experience a limited rebound.
At the beginning of the year, yields were higher, and in the fall of 2023 they were even significantly higher. And at that time, no one questioned the stability of US public finances. US government bond yields and the value of the US dollar have been closely correlated to date.
US Dollar (USD) is likely to trade sideways between 7.1640 and 7.1840 against Chinese Yuan (CNH). In the longer run, downward momentum has not increased significantly, but bias for USD is on the downside toward 7.1500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Yesterday ECB President Christine Lagarde gave a speech in Berlin. It was about how the euro could possibly replace the dollar as the dominant global currency in the future. The speech is worth reading, Commerzbank's Head of FX and Commodity Research Ulrich Leuchtmann notes.
The Euro extends losses for the fourth consecutive day against the British Pound, weighed by uninspiring Eurozone economic data and dovish comments by ECB policymaker Francois Villeroy.In Germany, the GFK Consumer Sentiment Index has ticked in from last week’s lows but remains at extremely low level
The USD/CAD pair gains to near 1.3760 during European trading hours on Tuesday. The Loonie pair rises as the US Dollar (USD) gains ground due to de-escalating trade tensions between the European Union (EU) and the United States (US).
European Central Bank (ECB) policymaker Robert Holzmann said on Tuesday that “the ECB should pause further interest rate cuts until at least September.”
US Dollar (USD) could edge lower and retest the 142.20 level vs Japanese Yen (JPY); the major support at 141.70 is unlikely to come under threat. In the longer run, risk is still on the downside, but it remains to be seen if USD can maintain its pace of decline.
Crude prices are paring losses on Tuesday as the UK and US markets return from a long weekend on an upbeat market mood. Trump’s decision to delay tariffs on European products has eased concerns about severe damage to global growth and to Oil demand by extension.
EUR/USD corrects to near 1.1350 during European trading hours on Tuesday after revisiting the monthly high of 1.1425 the previous day.
The Euro is trading without a clear direction, as the enthusiasm of the delay on Trump’s 50% tariffs wears out, while the moderate rebound on Oil prices is providing some support to the loonie.The pair has been losing momentum after hitting one-month highs, right above 1.5750 last week, yet with dow
Switzerland Economy Minister Guy Parmelin said on Tuesday, “we hope that by the beginning of July, we will have a result from discussions with the US.”
Silver prices (XAG/USD) fell on Tuesday, according to FXStreet data.
Early tomorrow morning (European time), the Reserve Bank of New Zealand (RBNZ) will announce its decision on interest rates.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is continuing its recovery from a five-week low of 98.70, recorded in the previous session. On Tuesday, the DXY is trading around 99.30 during the European hours.
Eurozone Economic Sentiment Indicator came in at 94.8, above expectations (94) in May
Eurozone Business Climate: -0.55 (May) vs -0.67
Eurozone Services Sentiment climbed from previous 1.4 to 1.5 in May
Eurozone Industrial Confidence came in at -10.3, above expectations (-11) in May
Eurozone Consumer Confidence meets forecasts (-15.2) in May
Gold (XAU/USD) price extends correction, sliding below the $3,300 mark at the time of writing on Tuesday amid improving risk-on mood and a stronger US Dollar (USD). Gold extends its decline for a second day this week as the US dollar caught up with some gains and demand for haven assets cooled, wit
The AUD/USD pair continues to lose ground for the second successive day, trading around 0.6450 during the European hours on Tuesday. The bullish bias is prevailing as the technical analysis of the daily chart indicates that the pair is remaining within the ascending channel pattern.
USD/JPY traded lower intra-day after BoJ Governor Ueda called for vigilance over food inflation risks. Japan's core inflation hit 3.5% in April, accelerating at its fastest annual pace in more than two years due largely to a 7% surge in food costs.
Conditions remain overbought; instead of rising, New Zealand Dollar (NZD) is more likely to trade in a range between 0.5960 and 0.6020 vs US Dollar (USD). In the longer run, for a sustained advance, NZD must break and hold above 0.6030, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Markets were largely quiet overnight with US and UK markets closed for public holiday. DXY was last at 99.29 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Australian Dollar (AUD) is expected to consolidate in a range between 0.6455 and 0.6510 vs US Dollar (USD). In the longer run, rapid buildup in momentum suggests AUD is likely to trade with an upward bias toward 0.6550, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Euro is trading higher for the second consecutive day, still fuelled by the delay of Trump’s deadline to avoid 50% tariffs in the US, while the Yen declines alongside super long-term Japanese yields.The pair extended its rebound from last week’s lows, at 161.00, to levels above 163.00 and is aim
The Reserve Bank of New Zealand is widely expected to cut rates by another 25bp to 3.25% tonight (announcement at 04:00am CET). The Bank will also publish the new Monetary Policy Statement, which includes policy rate projections.
Pound Sterling (GBP) is expected to consolidate between 1.3540 and 1.3600. In the longer run, upward momentum remains strong; the next objective is 1.3635, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Portugal Consumer Confidence: -18.2 (May) vs previous -17.9
Portugal Business Confidence up to 2.3 in May from previous 2.2
AUD/JPY steadies after recovering daily losses, trading around 92.80 during the European hours on Tuesday. The currency cross gains ground as the Japanese Yen (JPY) depreciates over fading safe-haven demand.
We shouldn’t be surprised to see the dollar softer at the start of the week, even with US President Donald Trump reversing course on 50% EU tariffs.
"Overnight at an event in Berlin, ECB’s Lagarde made another attempt to raise Euro’s profile. She said that 'The ongoing changes create the opening for a ‘global Euro moment’… This is a prime opportunity for Europe to take greater control of its own destiny.
Upward momentum is slowing, but Euro (EUR) could edge higher within a range of 1.1360/1.1420 vs US Dollar (USD). In the longer run, a decisive break above 1.1435 could push EUR to 1.1475, with potential for further gains, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Euro has come through the US tariff scare with barely a scratch. As discussed above, markets’ tendency to punish the dollar when trade tensions escalate means a rotation to the liquid Euro often prevents the idiosyncratic risks for the Eurozone from being priced in.
The Pound Sterling (GBP) retraces to near 1.3550 against the US Dollar (USD) in Tuesday’s European session from the three-year high around 1.3600 posted the previous day.
Minneapolis Federal Reserve (Fed) President Neel Kashkari said on Tuesday that he supports the stance to maintain interest rates until there is some clarity on the impact of higher tariffs on inflation.
Austria UniCredit Bank Manufacturing PMI: 48.4 (May) vs 46.6
The New Zealand Dollar failed to break the Year-to-Date high at 0.6030 and is trading lower on Tuesday, weighed by a somewhat stronger US Dollar and market expectations that the RBNZ will ease its monetary policy further on Wednesday.
European Central Bank (ECB) Governing Council member Gediminas Šimkus said on Tuesday that “the risks that inflation will be below the goal in the future have increased.”
Here is what you need to know on Tuesday, May 27:
West Texas Intermediate (WTI) Oil price remains subdued for the second successive session, trading around $61.10 per barrel during the early European hours on Tuesday.
European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Tuesday that “policy normalization in the Euro area is probably not complete.”
Silver prices (XAG/USD) are dropping beyond 1% on Monday, weighed by a moderately positive market sentiment and a mild US Dollar recovery.
The EUR/GBP cross holds steady near 0.8390 during the early European session on Tuesday. Traders will take more cues from Consumer Confidence in the Eurozone. The attention will shift to the German Retail Sales data, which is due later on Friday.
The Pound is trading higher for the second consecutive day on Tuesday, with the UK market returning from a long weekend on a moderately positive market mood. Trump’s decision to delay a 50% tariff on Eurozone products has boosted market sentiment.The positive mood is weighing on the Japanese Yen.
France Consumer Price Index (EU norm) (MoM) fell from previous 0.7% to -0.2% in May
France Consumer Price Index (EU norm) (YoY) fell from previous 0.9% to 0.6% in May
FX option expiries for May 27 NY cut at 10:00 Eastern Time vi a DTCC can be found below.
The US Dollar is showing marginal gains ahead of Tuesday’s European session opening.
West Texas Intermediate (WTI) Oil price falls on Tuesday, early in the European session. WTI trades at $61.11 per barrel, down from Monday’s close at $61.35.
Switzerland Exports (MoM) fell from previous 30239M to 25447M in April
Switzerland Imports (MoM): 19089M (April) vs previous 23889M
Switzerland Trade Balance rose from previous 6350M to 6358M in April
Germany GfK Consumer Confidence Survey came in at -19.9 below forecasts (-19.7) in June
The USD/CHF pair recovers some lost ground to near 0.8220 during the early European session on Tuesday. However, the potential upside for the pair might be limited amid the concerns over the mounting US national deficit.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is retracing its recent losses from the previous session. The DXY is trading around 98.80 during the Asian hours on Tuesday.
The EUR/JPY cross dropped to the 162.00 mark during the Asian session on Tuesday and eroded a major part of the previous day's gains led by the optimism over the EU tariff delay.
The EUR/USD pair trades in positive territory near 1.1395 during the Asian trading hours on Tuesday. The Euro (EUR) edges higher to the highest since late April against the US Dollar (USD) after US President Donald Trump delayed the imposition of 50% tariffs on Europe.
Gold prices fell in India on Tuesday, according to data compiled by FXStreet.
Gold price (XAU/USD) struggles to gain any meaningful traction and oscillates in a narrow band during the Asian session on Tuesday amid mixed fundamental cues.
Silver price (XAG/USD) loses ground after registering gains in the previous two sessions, trading around $33.40 per troy ounce during the Asian hours on Tuesday.
The Indian Rupee (INR) flat lines on Tuesday after hitting a two-week high in the previous session. A broader gain in the Asian currencies on account of a weak US Dollar (USD) could provide some support to the Indian currency.
GBP/USD extends its winning streak for the third successive session, trading around 1.3570 during the Asian hours on Tuesday. The pair is hovering near the 39-month high of 1.3593, which was marked on Monday.
The Japanese Yen (JPY) attracts fresh buyers during the Asian session on Tuesday following the release of strong inflation data. Adding to this, Bank of Japan (BoJ) Governor Kazuo Ueda's comments left the door open for further policy tightening by the central bank.
The Australian Dollar (AUD) remains subdued against the US Dollar (USD) for the second successive day on Tuesday. However, the AUD/USD pair maintains its position near a psychological 0.6500 level after pulling back from a six-month high of 0.6537, which was reached on Monday.
The NZD/USD pair extends its upside to around 0.6000 during the early Asian session on Tuesday. The US Dollar (USD) edges lower against the New Zealand Dollar (NZD) amid renewed trade tensions and growing concerns about the US fiscal outlook.
The People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.1876 as compared to the previous day's fix of 7.1833 and 7.1842 Reuters estimate.
Japan’s Finance Minister Shunichi Kato said on Tuesday that interest rates reflect various factors, but the market sees rising rates as reflecting concerns about state finances.
Bank of Japan Governor Kazuo Ueda said on Tuesday that while the Japanese central bank are now closer to the inflation target than any time during the last few decades, the BoJ is not quite there.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.25 during the Asian trading hours on Tuesday. The WTI price holds steady as traders awaits clarity on OPEC+ next move on May 31.
The USD/CAD pair remains on the defensive near 1.3735 during the early Asian session on Tuesday. The US Dollar weakens against the Canadian Dollar (CAD) as investors turn away from US assets.
NZD/JPY begins the week on a positive note after registering a gain of over 0.42% on Monday amid thin liquidity conditions, as the US and UK financial markets remained closed for a holiday.
South Korea Consumer Sentiment Index rose from previous 93.8 to 101.8 in May