Forex News Timeline

Tuesday, May 27, 2025

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.

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At the time of writing, the XAG/USD trades at $33.29, remains down in the day.XAG/USD Price Forecast: Technical outlookSilver price consolidates for the third straight day, capped on the upside by resistance at $33.69 the May 22 peak and on the downside by the 50-day Simple Moving Average (SMA) at $32.73.Momentum indicates that buyers are in charge as depicted by the Relative Strength Index (RSI). But they must clear $33.69, so that could pave the way to challenge $34. On further strength, XAG/USD next resistance level would be the March 26 high at $34.58, followed by $35.00.On the bearish scenario XAG/USD needs to achieve a daily close below the May 23 swing low of $32.90. In that outcome, the next test would be the 50-day Simple Moving Average (SMA) at $32.73. A decisive break will expose the 100-day SMA at $32.11, followed by the 200-day SMA at $31.40.XAG/USD Price Chart – Daily 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 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.

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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 Aussie is drawing support from a marginally weak Japanese Yen amid a broad improvement in market sentiment, which has reduced the appeal of traditional safe-haven assets, such as the Yen. Investors welcomed signs of easing trade tensions between the United States (US) and the European Union (EU), following President Trump’s decision to delay proposed tariffs on EU goods.Meanwhile, the Japanese Yen remains under pressure despite hawkish rhetoric from the Bank of Japan (BoJ). Domestic bond yields slipped after reports that the Ministry of Finance may scale back issuance of 20 and 40-year debt to ease upward pressure on long-term yields. The adjustment comes after a poorly received 20-year bond auction last week, which saw the weakest demand in over a decade. The news also triggered a broader dip in global yields, including US Treasuries, though the US Dollar regained some ground on improved risk sentiment, which compounded downward pressure on the Yen.That said, market participants continue to weigh the prospects for the Bank of Japan’s policy normalization. On Tuesday, BoJ Governor Kazuo Ueda reaffirmed the central bank’s readiness to “adjust the degree of monetary easing as needed” to ensure inflation targets are achieved. Governor Ueda also flagged upside risks to core inflation stemming from persistently high food prices, adding weight to speculation that the BoJ could move further along the path of policy normalization later this year.Looking ahead, traders will focus on inflation data from both Australia and Japan, with Australia’s CPI due Wednesday and Japan’s national CPI on Thursday. The releases could influence rate expectations for both the RBA and BoJ, and may drive fresh volatility in AUD/JPY. Economic Indicator Consumer Price Index (YoY) The Consumer Price Index (CPI), released by the Australian Bureau of Statistics on a quarterly basis, measures the changes in the price of a fixed basket of goods and services acquired by household consumers. The CPI is a key indicator to measure inflation and changes in purchasing trends. The YoY reading compares prices in the reference quarter to the same quarter a year earlier. A high reading is seen as bullish for the Australian Dollar (AUD), while a low reading is seen as bearish. Read more. Next release: Wed Jul 30, 2025 01:30 Frequency: Quarterly Consensus: - Previous: 2.4% Source: Australian Bureau of Statistics Why it matters to traders? The quarterly Consumer Price Index (CPI) published by the Australian Bureau of Statistics (ABS) has a significant impact on the market and the AUD valuation. The gauge is closely watched by the Reserve Bank of Australia (RBA), in order to achieve its inflation mandate, which has major monetary policy implications. Rising consumer prices tend to be AUD bullish, as the RBA could hike interest rates to maintain its inflation target. The data is released nearly 25 days after the quarter ends.

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%.

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Additionally, soft inflation data in France undermined the shared currency, which trades on Tuesday at 1.1335, down over 0.40%.Risk appetite has improved as market participants digested news that US President Donald Trump stated trade talks between the United States (US) and the European Union (EU) picked up some steam following his 50% tariff threats last Friday. Although he backpedaled, giving some room for negotiations, it remains to be seen if both parties reach an agreement before July 9.Upbeat US Consumer Confidence data in May, as revealed by the Conference Board (CB), provided a leg down on the EUR/USD pair. The US Dollar Index (DXY), which tracks the value of the American currency against the other six, rises by over 0.62% to 99.54.Other data in the US showed that Durable Goods Orders plunged in April, hitting their lowest level since October 2020.Across the pond, France's inflation figures continued to show an improvement in the deflationary process, opening the door for further easing by the European Central Bank (ECB).ECB’s Gediminas Simkus revealed that he sees scope for an “interest rate reduction in June.” Nevertheless, some voices at the ECB had turned slightly hawkish, with Robert Holzmann, an Austrian Central Bank member and an ECB member, stating in an interview with the Financial Times (FT) that he doesn’t see any reason to lower rates at the policy meetings in June and July.Data from the entire bloc revealed that the EU Economic Sentiment Indicator improved for the first time in three months in May, in line with the German GfK Consumer Sentiment for June.EUR/USD daily market movers: Undermined by solid US Consumer Confidence data, soft French inflation readingUS Consumer Confidence in May rose by 98.0, the highest level seen in the last four years. Stephanie Guichard, senior economist at The Conference Board, said, “The rebound was already visible before the May 12 US-China trade deal but gained momentum afterward.”US Durable Goods Orders disappointed investors, plummeting 6.3% MoM in April, down from March's 7.6% increase but exceeding forecasts of a 7.8% contraction.France’s Harmonized Index of Consumer Price (HICP) rose 0.6% YoY in May, down from a 0.9% increase in April and below estimates of 0.9%. This was the lowest reading since December 2020.The Gfk Consumer Sentiment Index in June improved from -20.8 to -19.9 but missed forecasts of -19. The rise was driven by an improvement in income prospects, although there is an increased willingness to save, rather than spend, which could dampen the prospects for Retail Sales.On Monday, European Central Bank (ECB) President Christine Lagarde stated the Euro could become a viable alternative to the US Dollar as the world’s reserve currency. However, she noted this could happen if governments strengthened the bloc's financial and security architecture.Financial market players had fully priced in that the ECB would reduce its Deposit Facility Rate by 25 basis points (bps) to 2% at the monetary policy meeting next week.Source: Prime Market TerminalEUR/USD technical outlook: Struggles at 1.14, dives beneath 1.1350 with eyes on 1.13EUR/USD is upwardly biased, although it faced stiff resistance at 1.1400. Monday’s price action formed an ‘inverted hammer’, a candlestick pattern that indicates sellers may be gaining control. However, further confirmation was needed at the time. As of writing, the pair has fallen below Monday’s low of 1.1358, opening the door for lower prices.A daily close below the latter could send EUR/USD diving towards the 1.1300 figure. Further downside is seen at the 20-day Simple Moving Average (SMA) at 1.1267, followed by the 1.1200 mark.On the upside, if EUR/USD stays above 1.1375, the next resistance would be the May 26 high of 1.1418, followed by 1.1450 and 1.1500. 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 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 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. Meanwhile, traders focused on the trade front as well as the Senate debate on Trump’s sweeping tax bill.Here’s what to watch on Wednesday, May 28:The US Dollar Index (DXY) rebounded from multi-week troughs on Tuesday, climbing to two-day highs near 99.60 amid declining US yields across the curve. The release of the FOMC Minutes of the May 7 meeting will be the salient event, seconded by the weekly MBA Mortgage Applications, the Richmond Fed Manufacturing Index, and the API’s weekly report on US crude oil inventories. Additionally, the Fed’s Williams and Kashkari are due to speak.EUR/USD once again met a tough resistance just above the 1.1400 barrier, slipping back to the negative territory following a mild bounce in the US Dollar. Germany’s labour market report will be in the spotlight, seconded by Import Prices, while the ECB will release its Consumer Inflation Expectations survey.GBP/USD alternated gains with losses just below the 1.3400 barrier amid the decent recovery in the Greenback. The BoE’s Pill is due to speak.Further depreciation of the Japanese Yen lent fresh wings to USD/JPY, prompting the pair to reclaim the 144.00 hurdle and above. Next on the Japanese calendar will be the weekly Foreign Bond Investment prints and May’s Consumer Confidence, all expected on May 29.AUD/USD added to the recent rejection from yearly peaks north of 0.6500 and retreated to the 0.6440 zone, where it met some contention for the time being. The RBA’s Monthly CPI Indicator and Construction Work Done are next on tap.Prices of WTI dropped for the second day in a row on Tuesday, approaching the key $60.00 mark per barrel as traders remained prudent ahead of the OPEC+ meeting, while easing geopolitical concerns also contributed to the correction.Gold prices extended Monday’s pessimism and flirted with three-day troughs near the $3,280 mark per troy ounce following a stronger US Dollar and easing jitters on the trade front. Silver prices lost momentum and revisited the $32.80 zone per ounce, an area coincident with the interim 55-day SMA.

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.

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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 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.

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The move reflects a combination of technical exhaustion and shifting macroeconomic sentiment.AUD/USD looks ahead to Australia’s CPI data release and FOMC MinutesDespite broader concerns surrounding President Trump's fiscal agenda and tariff threats, the Federal Reserve’s (Fed) continued hawkish tone has helped limit downside pressure on the USD. In contrast, the Reserve Bank of Australia (RBA) remains dovish, prioritizing support for domestic growth amid rising external uncertainty.Markets are now turning attention to upcoming inflation data in Australia. The Monthly Consumer Price Index (CPI) for April is due Wednesday, with the annual inflation rate expected to ease to 2.3% from 2.4% previously. A softer print could reinforce expectations for further RBA rate cuts in the months ahead.In the United States, focus shifts to the release of the Federal Open Market Committee  (FOMC) Meeting Minutes from the May rate decision, which may offer greater clarity on the Fed’s policy outlook amid persistent inflation and fiscal headwinds.With policy divergence becoming more pronounced and the AUD lacking fresh domestic catalysts, the pair may struggle to regain upward momentum. A sustained break below 0.6450 could expose AUD/USD to further downside toward key psychological support at 0.6400. Interest rates FAQs What are interest rates? Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%. If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation. How do interest rates impact currencies? Higher interest rates generally help strengthen a country’s currency as they make it a more attractive place for global investors to park their money. How do interest rates influence the price of Gold? Higher interest rates overall weigh on the price of Gold because they increase the opportunity cost of holding Gold instead of investing in an interest-bearing asset or placing cash in the bank. If interest rates are high that usually pushes up the price of the US Dollar (USD), and since Gold is priced in Dollars, this has the effect of lowering the price of Gold. What is the Fed Funds rate? The Fed funds rate is the overnight rate at which US banks lend to each other. It is the oft-quoted headline rate set by the Federal Reserve at its FOMC meetings. It is set as a range, for example 4.75%-5.00%, though the upper limit (in that case 5.00%) is the quoted figure. Market expectations for future Fed funds rate are tracked by the CME FedWatch tool, which shapes how many financial markets behave in anticipation of future Federal Reserve monetary policy decisions.

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 DXY Index is trading near 99.50, up around 0.75% on the day.President Trump’s decision to delay 50% tariffs on EU imports lifts near-term sentiment.Bulls need a sustained daily close above 100.50 to negate the bearish outlook.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.At the time of writing, the DXY index is staging a modest rebound from the four-week low touched on Monday. The Index is seen trading around 99.50 during the American session, up nearly 0.75% on the day, paring some of the losses from the previous week. While the short-term bounce has given some relief to US Dollar bulls, the broad technical structure continues to favor the downside, with momentum indicators still struggling to turn bullish.Zooming in on the daily chart, the DXY decisively broke below the bearish flag pattern last week. The breakdown occurred around the 100.50 area, which had previously provided short-term structural support but now flipped into a key resistance zone.However, the Index is attempting to recover off a near-term support level around the 99.00 round figure. This area, which also includes the recent swing low near 98.80, is offering a cushion for now as buyers cautiously step back in.That said, the rebound is approaching stiff resistance near the 21-day Exponential Moving Average (EMA) at 100.10, and the previously broken flag base at 100.50 is now acting as a ceiling. The price remains below short-term moving averages with both the 21-day and 50-day EMAs (101.22) sloping downward.From a structural standpoint, any upside is likely to face headwinds unless the index can convincingly break above these moving averages. On the upside, a decisive break above the 100.00 psychological zone will be the first target for bulls. Until then, the path of least resistance appears tilted to the downside with rallies likely to be viewed as selling opportunities. Meanwhile, a break below the 98.80 floor would likely pave the way for a deeper correction toward the 97.50 region.Looking at the momentum indicators, the Relative Strength Index (RSI) is picking up slightly after last week’s slide but remains below the 50 mark, indicating that buyers haven’t yet taken control. Similarly, the Moving Average Convergence Divergence (MACD) indicator remains in negative territory, with the signal line showing no signs of a bullish crossover. The lack of conviction in both indicators suggests that the market remains tilted in favor of sellers despite the current bounce.

The Dow Jones climbed alongside other major equities on Tuesday, with investor sentiment snapping back after last week’s declines.

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Dow Jones FAQs What is the Dow Jones? The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500. What factors impact the Dow Jones Industrial Average? Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions. What is Dow Theory? Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow’s theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits. How can I trade the DJIA? There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.

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.

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.Key QuotesIt's too early to say if the ECB will cut rates again next month.The euro area's 2% inflation target is within reach.Inflation could be higher or lower than previously seen.Forecasts are based on less solid ground than usual.I'm keeping a close eye on inflation expectations.Germany saw a lot of trade frontloading in Q1.

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

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.
He stated in an interview with Germany's Frankfurter Allgemeine newspaper that they needed to find a middle path when questioned about the implications for interest rate policy.
Lane added that they would respond with further interest rate cuts if they saw signs of further falling inflation. However, it was noted that the scope of the discussion is rather limited, with no one mentioning any significant reductions in rates. They stated that they are in a zone of normal central banking.

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.

.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 New Zealand Dollar declines as the US Dollar experiences a rebound. The Greenback increases with upbeat Consumer Confidence, assisting gains.NZD/USD falls toward technical support, holding firm at the mid-point of the September to April decline.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.The pullback comes as concerns over US and EU trade tensions ease and the broader market mood becomes more stable, allowing the US Dollar to recover some of last week’s losses.At the time of writing, the NZD/USD pair is trading near 0.5945  after encountering resistance at the psychologically significant 0.6000 mark and failing to build momentum beyond it. With US markets back from the Memorial Day break, the USD is finding fresh support. A stronger-than-expected Consumer Confidence reading has helped fuel the rebound. The index rose sharply to 98 in May, up from 85.7 in April, reflecting a notable increase in optimism among US consumers. The data highlights growing confidence in the economic outlook despite lingering global uncertainties.That rejection has prompted a pullback toward the midpoint of the decline from September to April.NZD/USD retreats with RBNZ rate decision, FOMC minutes aheadFor the Kiwi, Wednesday’s economic agenda remains a key focal point for investors as markets prepare for the Reserve Bank of New Zealand’s (RBNZ) interest rate decision, scheduled for 02:00 GMT.Market participants are anticipating that the central bank will announce a 25 bps (0.25%) rate cut. The move would lower the benchmark rate to 3.25%, down from its current level of 3.50%.Although the reduction has been priced into the NZD/USD exchange rate, the accompanying Monetary Policy Statement may help induce volatility. With the report providing insight into the reasoning for the latest announcement and the projected economic outlook, any hawkish or dovish comments may result in a repricing of expectations for the trajectory of interest rates.For the United States, the Federal Open Market Committee (FOMC) will release the Minutes of its May 6-7 meeting, when policymakers decided to keep the interest rate unchanged. The Minutes are expected to reveal clues on the Fed’s hawkish stance and could further help guide expectations for the timing of the next rate cut, currently priced in for September.  New Zealand Dollar FAQs What key factors drive the New Zealand Dollar? The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD. How do decisions of the RBNZ impact the New Zealand Dollar? The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair. How does economic data influence the value of the New Zealand Dollar? Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar’s (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate. How does broader risk sentiment impact the New Zealand Dollar? The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called ‘commodity currencies’ such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.

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.

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Consequently, an improvement in risk appetite and the Greenback trimming some of last week’s losses weighed on the non-yielding metal.Over the weekend, a call between Trump and the EU chief, Ursula von der Leyen, ended with Washington's decision to postpone 50% tariffs on EU goods until July 9. This shift in investors' mood triggered outflows from haven assets, except for the US Dollar, and pushed global equities higher.The US Dollar Index (DXY), which tracks the buck’s value against a basket of six currencies, rises over 0.62% to 99.54, fueled by an improvement in Consumer Confidence, which according to the Conference Board (CB) rose the most in four years.News that Washington could be on the brink of securing additional trade deals in the near term added to the positive sentiment among traders. Fox Business News Gasparino, in a post on X, revealed that a framework between the US and India is close to being announced.Other economic data in the US revealed that Durable Goods Orders fell in April the most since October, with business equipment diving sharply due to uncertainty about tariffs and US tax policy.Bullion’s faith for the remainder of the week rests on the upcoming US economic docket. They will eye the Federal Reserve’s (Fed) last meeting minutes, the second estimate for Gross Domestic Product (GDP) in Q1 2025, and the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index.Gold daily market movers: Bullion plummets on strong US Dollar and solid US Consumer ConfidenceUS Treasury bond yields remain steady. The 10-year Treasury note yield falls six basis points (bps) down to 4.446%. Meanwhile, US real yields also declined by six basis points to 2.116%.US Consumer Confidence in May improved from 85.7 to 98.0, with the recovery attributed to the truce on tariffs. Stephanie Guichard, senior economist at The Conference Board, said, “The rebound was already visible before the May 12 US-China trade deal but gained momentum afterward.”US Durable Goods Orders disappointed investors, plunged -6.3% MoM in April, down from March's 7.6% increase but exceeded forecasts of -7.8% contraction.Minneapolis Fed President Neel Kashkari said that interest rates should remain on hold until there is clarity on how higher duties affect price stability.Despite the backdrop, the Gold price outlook remains optimistic due to the still fragile market mood on US assets, ignited by the growing fiscal deficit in the United States, which prompted Moody’s to downgrade US government debt from AAA to AA1.Besides this, Reuters revealed that “China's net gold imports via Hong Kong more than doubled in April from March, and were the highest since March 2024, data showed.”Money markets suggest that traders are pricing in 46.5 basis points of easing toward the end of the year, according to Prime Market Terminal data.Source: Prime Market TerminalXAU/USD technical outlook: Gold price pullback to challenge $3,250Gold price remains steady, hovering on the bottom of the $3,300 figure but set to consolidate within the $3,250-$3,300 range ahead. Nevertheless, the uptrend remains intact, with buyers eyeing a decisive break above $3,300, which could pave the way for testing last week’s peak of $3,365 ahead of a challenging $3,400. Further upside lies above the May 7 high of $3,438.On the bearish side, if Gold drops below $3,250, expect a move to the confluence of the May 20 daily low and the 50-day Simple Moving Average (SMA) near $3,204/05. 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.

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.

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Hopes of a breakthrough in tariff negotiations between Washington and Brussels have lifted risk sentiment, lending modest support to the Greenback after weeks of pressure from fiscal concerns and a cautious Federal Reserve (Fed) stance.That said, the British Pound’s broader strength remains largely intact, underpinned by domestic factors that have altered market expectations around the Bank of England’s (BoE) next moves.“While the pound’s recent strength is largely a dollar weakness story, there are a few idiosyncratic factors at play,” said Michael Brown, senior research strategist at Pepperstone. “We did have a much more hawkish than expected May policy decision from the BoE, then compounding that we had hotter than expected UK inflation last week, which has seen participants continuing to trim their bets on BoE easing this year.”Market participants are now pricing in a lower probability of rate cuts by the BoE in the second half of 2025, especially after last week’s CPI data surprised to the upside.The Bank of England (BoE) cut its benchmark Bank Rate by 25 basis points to 4.25% at its meeting on May 8.  However, market pricing has now adjusted firmly in favor of a pause, with Reuters reporting that 93.6% of traders expect the central bank to keep rates unchanged at the next meeting.In the United States, fresh economic data released on Tuesday revealed that Durable Goods Orders for April printed at -6.3% from 7.6% growth in March, driven by a significant decline in orders for transportation equipment, particularly Boeing. Conversely, Consumer Confidence rebounded in May, with the Conference Board's index rising to 98.0 from 85.7 in April.Looking ahead, traders await the FOMC Minutes on Wednesday, Q1 GDP revision on Thursday, and April PCE data on Friday. Fed speeches throughout the week may also guide rate expectations. Meanwhile, commentary from BoE policymakers could further shape the outlook for the British Pound. Central banks FAQs What does a central bank do? Central Banks have a key mandate which is making sure that there is price stability in a country or region. Economies are constantly facing inflation or deflation when prices for certain goods and services are fluctuating. Constant rising prices for the same goods means inflation, constant lowered prices for the same goods means deflation. It is the task of the central bank to keep the demand in line by tweaking its policy rate. For the biggest central banks like the US Federal Reserve (Fed), the European Central Bank (ECB) or the Bank of England (BoE), the mandate is to keep inflation close to 2%. What does a central bank do when inflation undershoots or overshoots its projected target? A central bank has one important tool at its disposal to get inflation higher or lower, and that is by tweaking its benchmark policy rate, commonly known as interest rate. On pre-communicated moments, the central bank will issue a statement with its policy rate and provide additional reasoning on why it is either remaining or changing (cutting or hiking) it. Local banks will adjust their savings and lending rates accordingly, which in turn will make it either harder or easier for people to earn on their savings or for companies to take out loans and make investments in their businesses. When the central bank hikes interest rates substantially, this is called monetary tightening. When it is cutting its benchmark rate, it is called monetary easing. Who decides on monetary policy and interest rates? A central bank is often politically independent. Members of the central bank policy board are passing through a series of panels and hearings before being appointed to a policy board seat. Each member in that board often has a certain conviction on how the central bank should control inflation and the subsequent monetary policy. Members that want a very loose monetary policy, with low rates and cheap lending, to boost the economy substantially while being content to see inflation slightly above 2%, are called ‘doves’. Members that rather want to see higher rates to reward savings and want to keep a lit on inflation at all time are called ‘hawks’ and will not rest until inflation is at or just below 2%. Is there a president or head of a central bank? Normally, there is a chairman or president who leads each meeting, needs to create a consensus between the hawks or doves and has his or her final say when it would come down to a vote split to avoid a 50-50 tie on whether the current policy should be adjusted. The chairman will deliver speeches which often can be followed live, where the current monetary stance and outlook is being communicated. A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency. All members of the central bank will channel their stance toward the markets in advance of a policy meeting event. A few days before a policy meeting takes place until the new policy has been communicated, members are forbidden to talk publicly. This is called the blackout period.

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.

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The Indian Rupee slips on importer-led Dollar demand and steady US Dollar.RBI rate cut speculation puts pressure on short-term Rupee outlook.USD/INR holds above 85.35, with the next resistance seen near 85.50 and support at 84.80.The Indian Rupee (INR) depreciates against the US Dollar (USD) on Tuesday amid month-end Dollar demand from importers and a steady Greenback.At the time of writing, the USD/INR pair is trading around 85.37 during the American trading hours. The pair is seen recovering from the two-week low touched on Monday, supported by a steady US Dollar.The US Dollar Index (DXY), which measures the value of the USD against a basket of six major currencies, is trading around 99.20, recovering from a four-week low. The recovery comes on the back of renewed trade optimism led by the US President Donald Trump’s decision to delay imposing tariffs on the European Union (EU).The decline in the Rupee is mainly attributed to the month-end demand for the US Dollar from local companies and foreign banks. “Importers have been actively covering their Dollar liabilities in recent sessions, as there’s growing concern that even a modest reversal in the Dollar’s trajectory could push the Rupee toward the 86.00 mark,” a trader at a Mumbai-based bank said, according to Reuters.Adding to the pressure, a rebound in oil prices is raising concerns about India’s trade balance. Weaker domestic equities are also dampening investor sentiment and adding to the INR’s downside.However, speculation about a potential rate cut by the Reserve Bank of India (RBI) at the upcoming Monetary Policy Committee (MPC) meeting is also weighing on the Rupee’s short-term outlook.Amit Pabari, Managing Director at CR Forex Advisors, said the prospect of a dovish tilt by the RBI is dampening bullish sentiment toward the Indian currency. “The Rupee is likely to face stiff resistance near the 85.50 level, and any upward move could attract selling interest,” Pabari noted. “Immediate support is seen in the 84.80 to 84.90 range.” RBI FAQs What is the role of the Reserve Bank of India? The role of the Reserve Bank of India (RBI), in its own words, is "..to maintain price stability while keeping in mind the objective of growth.” This involves maintaining the inflation rate at a stable 4% level primarily using the tool of interest rates. The RBI also maintains the exchange rate at a level that will not cause excess volatility and problems for exporters and importers, since India’s economy is heavily reliant on foreign trade, especially Oil. How do the decisions of the Reserve Bank of India affect the Rupee? The RBI formally meets at six bi-monthly meetings a year to discuss its monetary policy and, if necessary, adjust interest rates. When inflation is too high (above its 4% target), the RBI will normally raise interest rates to deter borrowing and spending, which can support the Rupee (INR). If inflation falls too far below target, the RBI might cut rates to encourage more lending, which can be negative for INR. Does the Reserve Bank of India directly intervene in FX markets? Due to the importance of trade to the economy, the Reserve Bank of India (RBI) actively intervenes in FX markets to maintain the exchange rate within a limited range. It does this to ensure Indian importers and exporters are not exposed to unnecessary currency risk during periods of FX volatility. The RBI buys and sells Rupees in the spot market at key levels, and uses derivatives to hedge its positions.

- US CB Consumer Confidence Index rebounds in May.

- US CB Consumer Confidence Index rebounds in May.- The US Dollar Index clings to daily gains around the 99.40 region.In May, US consumer morale rebounded, with the Conference Board's Consumer Confidence Index rising to 98.0 from 86.0 (revised from 85.7), reversing the previous drop.Consumer mood strengthened in May, as opinions on current business and labour market circumstances shifted. The Present Situation Index increased by 4.8 points to 135.9. More significantly, the Expectations Index, which measures short-term expectations for income, economic activity, and employment, gained 17.4 points to 72.8, still remaining below the 80-point level usually associated with recession fearsAccording to Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board: “The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards. The monthly improvement was largely driven by consumer expectations as all three components of the Expectations Index—business conditions, employment prospects, and future income—rose from their April lows. Consumers were less pessimistic about business conditions and job availability over the next six months and regained optimism about future income prospects. Consumers’ assessments of the present situation also improved. However, while consumers were more positive about current business conditions than last month, their appraisal of current job availability weakened for the fifth consecutive month.”Market reactionThe US Dollar (USD) remains well bid around the 99.40 zone when tracked by the US Dollar Index (DXY), despite a mild pullback in US yields across the board.

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.

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The Aussie pair retraces as the US Dollar (USD) recovers strongly on easing trade tensions between the European Union (EU) and the United States (US).The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises to near 99.40 from the monthly low of 98.70 posted on Monday.Market experts have linked the Greenback’s recovery move to the US President Donald Trump’s decision to suspend 50% tariffs on imports from the Eurozone until July 9, announced over the weekend. "I would guess strength in the US Dollar is because Trump retreated over the weekend. Yesterday, markets were closed, so there was only a small move. Now, with the UK being back, it’s a recovery of the move we saw on Friday," analysts at Commerzbank said.On the domestic front, US Durable Goods Orders data for April has come in significantly weak. The Census Bureau reported that cost of orders received by manufacturers for durable goods declined by 6.3% after a significant increase of 7.6% in March. Economists expected the data to have declined substantially by 7.9%.Meanwhile, the Australian Dollar (AUD) underperforms ahead of the Monthly Consumer Price Index (CPI) data for April, which will be released on Wednesday. The CPI data is expected to have grown at a moderate pace of 2.3% on year, compared to 2.4% growth seen in March. Soft inflations data would boost expectations of more interest rate cuts by the Reserve Bank of Australia (RBA) in the remainder of the year. Economic Indicator Monthly Consumer Price Index (YoY) The Monthly Consumer Price Index (CPI), released by the Australian Bureau of Statistics on a monthly basis, measures the changes in the price of a fixed basket of goods and services acquired by household consumers. The indicator was developed to provide inflation data at a higher frequency than the quarterly CPI. The YoY reading compares prices in the reference month to the same month a year earlier. A high reading is seen as bullish for the Australian Dollar (AUD), while a low reading is seen as bearish. Read more. Next release: Wed May 28, 2025 01:30 Frequency: Monthly Consensus: 2.3% Previous: 2.4% Source: Australian Bureau of Statistics

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.

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.Key QuotesPublished data shows an economy on the same trajectory as the last year or two.Businesses still are largely pulling to the sidelines.Government spending cuts are having an impact on employment and job postings, particularly in the D.C. area.Consumers are anticipating inflation, and that has hit sentiment; no evidence yet that has translated into less spending.Waiting to see what happens with inflation and jobs.





"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.

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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.

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Currently, Gold is trading just below the 23.6% Fibonacci retracement (Fib) level of the January-April YTD rally at $3,291 and slightly under the 20-day Simple Moving Average (SMA), currently around $3,288. The latest daily candle reflects a bearish rejection from the upper boundary of the wedge, signaling short-term resistance. Despite this pullback, the broader structure remains intact, and the overall technical bias still leans bullish.Gold clings to Moving Average support, with psychological resistance firming at $3,300The 23.6% Fibonacci level at $3,291 serves as immediate resistance, while the horizontal level around $3,200 acts as critical near-term support. A breakdown below $3,200 could open the door toward the 38.2% retracement level at $3,161, followed by deeper support near the 50% and 61.8% Fibonacci levels at $3,057 and $2,952, respectively.On the upside, a decisive breakout above the descending wedge, particularly a close above $3,350-$3,360, would likely attract bullish momentum. Such a breakout would target a retest of the April all-time high (ATH) at $3,500.The Relative Strength Index (RSI) is at around 52, suggesting neutral momentum with a slight bullish tilt. This level indicates that the market is in equilibrium, supporting the view that prices are consolidating ahead of a potential breakout. 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.

Silver price (XAG/USD) dives almost 2% to near $32.80 during North American trading hours on Tuesday.

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Investors have dumped the white metal as trade tensions between the United States (US) and the European Union (EU) have eased, with President Donald Trump postponing 50% tariffs on the trading bloc to July 9 from June 1.Signs of easing US-EU trade uncertainty have diminished demand for safe-haven assets, such as Silver.Meanwhile, the US Dollar (USD) has gained sharply as Washington and Brussels have increased efforts to reach a bilateral deal, potentially impacting the Silver price. During European trading hours, a report from Reuters showed that European officials have asked domestic firms to share their plans for investment in the US. Technically, a higher US Dollar makes the Silver price an expensive bet for investors.The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps to near 99.35 after attracting bids near the monthly low of 98.70 posted on Monday.The US Dollar should have shown strength on Monday as Trump’s decision to suspend 50% EU tariffs came over the weekend. However, it remained on the backfoot due to the holiday in the US on account of Memorial Day.Analysts at Commerzbank said, "I would guess strength in the US Dollar is because Trump retreated over the weekend. Yesterday, markets were closed, so there was only a small move. Now, with the UK being back, it’s a recovery of the move we saw on Friday." Silver technical analysisSilver price ranges between $31.65 and $33.70 for 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 $32.87.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 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.

Durable Goods Orders in the US declined less than expected in April.The US Dollar Index stays in positive territory above 99.00.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. This reading followed a 7.6% increase (revised from 9.2%) reported in March and came in slightly better than the market expectation for a decrease of 7.9%."Excluding transportation, new orders increased 0.2%," the press release read. "Excluding defense, new orders decreased 7.5%. Transportation equipment, also down following four consecutive monthly increases, drove the decrease, $20.3 billion, or 17.1% to $98.8 billion."Market reactionThe US Dollar Index holds its ground following this data and was last seen rising 0.37% on the day at 99.30.

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.

.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 Mexican Peso turns cautious as US Consumer Confidence and Durable Goods Orders loom.Fed’s Kashkari hawkish tone underscores the uncertainty surrounding trade, backing the central bank’s stance to hold interest rates steady.USD/MXN faces trendline resistance at 19.29, but remains in a broader downtrend. 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.With liquidity returning to markets from the Memorial Day holiday weekend in the US, the sell-off in bond markets has paused temporarily. Despite an uptick in risk sentiment and a minor pullback in the Mexican Peso, USD/MXN remains steady in a tight range.At the time of writing, the emerging market (EM) currency pair remains on a downward trajectory following its decline in April. However, a modest recovery has pushed it toward trendline resistance at 19.27.US demand and sentiment indicators in focus ahead of key policy signalsThe spotlight turns to the US Durable Goods Orders report for April this Tuesday. The indicator tracks new orders placed with US manufacturers for long-lasting goods, which means goods planned to last for three years or more, providing a gauge of industrial activity. Markets are bracing for a sharp reversal in US Durable Goods Orders in April, with forecasts pointing to a 7.9% contraction in the headline figure, compared to the robust 9.2% increase seen in March. This would reflect a potential fallout from trade-related disruptions.Later in the day, at 14:00 GMT, the US Conference Board will publish its Consumer Confidence Index for May. After plunging to a post-pandemic low of 86.0 in April, the upcoming print will provide further insight into the economic outlook of US households, amid mounting fiscal and geopolitical uncertainties.Fed’s Kashkari urges patience, highlighting uncertainty from economic shocks,Neel Kashkari, President of the Federal Reserve (Fed) Bank of Minneapolis, provided a temporary boost in confidence this Tuesday. When speaking at the Tokyo summit, where bankers, policymakers, and economists gathered to discuss, he maintained a hawkish tone for monetary policy. To conclude his speech, Kashkari stated that "Massive shocks create uncertainty for policymakers, both in understanding the underlying dynamics of the shocks themselves and, for some shocks, in determining the appropriate policy response. In such moments, taking time to get more information to help inform the collective judgments of policymakers may be the best of an imperfect set of options," the official site of the Federal Reserve Bank of Minneapolis reports.These comments reiterate the Fed's narrative that interest rates will likely remain at current levels until the impact of US President Trump’s tariffs on the economy becomes clearer.Mexican Peso daily digest: US Consumer Confidence threatens USD/MXNWith the Fed reiterating its 'data-dependent' stance, US Durable Goods Orders and US Consumer Confidence data due later in the day are in the spotlight.On Wednesday, the minutes from May’s Federal Reserve Open Markets Committee (FOMC) meeting will provide additional insight into the central bank's decision to maintain interest rates at current levels and the potential trajectory of monetary policy in the near term.Market participants are awaiting the release of the Fed's preferred inflation measure, which is the US core Personal Consumption Expenditures (PCE) data for April, as well as the University of Michigan Consumer Sentiment figures, both scheduled for release on Friday. These data points are crucial for understanding inflation and consumer sentiment, as they gauge US citizens' feelings about the current economic situation. Both factors influence expectations regarding when the Federal Reserve (Fed) might consider cutting interest rates.Mexican Peso technical analysis: USD/MXN rebounds toward trendline resistance, bearish pressure persistsUSD/MXN continues to trade within a downward trend, with prices capped beneath the 10-day Simple Moving Average (SMA) at 19.33.After hitting a new YTD low below 19.20 on Monday, a modest rebound in the US Dollar has pushed the pair to trendline resistance from the April decline at 19.29.Momentum indicators remain weak, with the Relative Strength Index (RSI) flattening at 36.47, indicating that while bearish momentum is present, the market is not yet in oversold territory. With the downtrend currently intact, a break below 19.20 could draw attention to the October low at 19.11, which serves as the next significant support level. A sustained break below this level could open the door to deeper declines toward 19.00, while any rebound would first need to reclaim 19.47 to shift short-term sentiment.USD/MXN daily chart
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.

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.

.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 Japanese Yen retreats from a four-week high of 142.11 against the US Dollar.BoJ’s Ueda warns food inflation could push underlying inflation above 2% target.The USD/JPY is eyeing its next resistance around 144.50 as bullish momentum builds.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.At the time of writing, the USD/JPY pair is hovering near 144.00, up nearly 1.20% on the day, building on Monday’s modest gains. The sharp recovery comes despite the Bank of Japan’s (BoJ) Governor Kazuo Ueda's hawkish comments, with the US Dollar regaining some stability amid signs that trade tensions may be easing.On the economic data front, the BoJ reported on Tuesday that the Corporate Service Price Index (CSPI) rose 3.1% YoY in April, easing slightly from an upwardly revised 3.3% gain in March. The slowdown was modest, but it still points to lingering cost pressures in the services sector.Meanwhile, last week’s stronger-than-expected inflation print in Japan has kept the focus on the BoJ’s policy path. Japan’s core CPI climbed to 3.5% in April, marking its highest level in nearly two years and beating market expectations, mainly driven by rising food and energy costs.Adding to the narrative, Governor Kazuo Ueda said in a BoJ-hosted conference on Tuesday that the central bank remains vigilant over the impact of surging food prices on broader inflation trends. Ueda cautioned that rising food prices, particularly the sharp jump in rice costs, could push underlying inflation beyond the central bank's 2% target."Given that underlying inflation is closer to 2% than a few years ago, we need to be careful about how food price inflation will impact underlying inflation," Ueda stated.Ueda emphasized that the BoJ stands ready to adjust its monetary policy stance if needed to achieve its inflation objectives, reiterating that incoming data would guide any policy move.A Reuters poll, conducted from May 7 to 13, showed that most economists expect the BoJ to hold rates steady through September, with a small majority forecasting a hike by year-end.Despite the hawkish tone, the Japanese Yen struggles to hold its ground as the US Dollar regains traction, supported by improving risk sentiment following the easing of trade tensions, which offered some relief to investors. USD/JPY continues to edge higher, eyeing a potential retest of the 144.50 zone if bullish momentum holds. 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 Swiss Franc. USD EUR GBP JPY CAD AUD NZD CHF USD 0.29% 0.09% 0.81% 0.22% 0.63% 0.79% 0.72% EUR -0.29% -0.21% 0.52% -0.07% 0.25% 0.40% 0.41% GBP -0.09% 0.21% 0.76% 0.14% 0.44% 0.61% 0.58% JPY -0.81% -0.52% -0.76% -0.56% -0.18% -0.10% -0.08% CAD -0.22% 0.07% -0.14% 0.56% 0.39% 0.48% 0.44% AUD -0.63% -0.25% -0.44% 0.18% -0.39% 0.05% 0.04% NZD -0.79% -0.40% -0.61% 0.10% -0.48% -0.05% -0.05% CHF -0.72% -0.41% -0.58% 0.08% -0.44% -0.04% 0.05% 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).

Gold is in high demand as a safe haven.

Gold is in high demand as a safe haven. This is all the more true these days, as other supposed safe havens, such as the US dollar and/or US government bonds, have lost their appeal due to the erratic policies of the US government under President Donald Trump, Commerzbank's commodity analyst Barbara Lambrecht notes.USD and US govt bonds lose their safe haven appeal"The ECB has also recently addressed the question of what the record-breaking Gold market is saying about risk perception on the financial markets. The attractiveness of investing in Gold in uncertain times also lies in the fact that there is no counterparty risk (when Gold is held in physical form), while supply is limited and inelastic, which preserves Gold's intrinsic value.""The ECB notes that investors have recently shown a strong preference for Gold futures with physical delivery. As a result, Gold holdings on the COMEX have risen sharply, according to Bloomberg figures, from the beginning of December to the beginning of April by 150% to a new record high of 45 million ounces.""Investors in the eurozone are also exposed to Gold through derivatives: their gross notional value has risen by 58% since last November to EUR 1 trillion at the end of March. A significant portion of this is OTC transactions, which always carry heightened risks of counterparty default."

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.

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. Ueda confirms a bias to further tightening"Bond market developments remain front and center for the currency, as market participants speculate about the possibility of a reduction in government debt issuance following the finance ministry’s engagement with primary dealers." "US-Japan spreads have remained relatively steady and top tier domestic data releases have been limited, leaving the focus squarely centered on headline risk including comments from BoJ Gov. Ueda who confirmed a bias to further tightening."

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.

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. Trend for GBP/USD is bullish"Domestic data were weak, with CBI reported sales figures for May reflecting a sizeable deterioration. The near-term data release calendar remains limited and rate expectations remain steady, with markets pricing a minimal chance of a 25bpt cut in June and 39bpts of easing by December." "The trend for GBP/USD is bullish, given the sequence of higher lows and higher highs, as well as the recent push to fresh multiyear highs. The momentum indicators are bullish, providing confirmation to the moves in the spot, and the RSI’s current reading of 64 leaves ample space for further upside. We look to near-term support at 1.35 and near-term resistance at 1.36."

The US Dollar has bounced up from three-week lows, favoured by a brighter market mood.

.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}US Dollar bounded up and broke the top of the descending channel at 0.8255. The Swiss franc is struggling in a risk-on market.The daily chart shows a “Morning Star” candle formation, which suggests a potential trend shift.
damageThe US Dollar has bounced up from three-week lows, favoured by a brighter market mood. The CHF is one of the weakest performers on Tuesday, as the improved market sentiment is undermining demand for safe havens.

Investors are still celebrating Trump’s backtrack on his threat to impose 50% tariffs on Europe, which would open a new front on the trade war and severely damage global growth expectations.

The market focus is now on April’s Durable Goods Orders data and May’s Consumer Sentiment, which will shed some light on how the tariff turmoil has affected manufacturing and consumption. Swiss Franc PRICE Today The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the Japanese Yen. USD EUR GBP JPY CAD AUD NZD CHF USD 0.34% 0.15% 0.85% 0.22% 0.67% 0.83% 0.75% EUR -0.34% -0.22% 0.49% -0.13% 0.23% 0.39% 0.39% GBP -0.15% 0.22% 0.72% 0.09% 0.43% 0.60% 0.57% JPY -0.85% -0.49% -0.72% -0.60% -0.18% -0.09% -0.09% CAD -0.22% 0.13% -0.09% 0.60% 0.42% 0.52% 0.48% AUD -0.67% -0.23% -0.43% 0.18% -0.42% 0.07% 0.04% NZD -0.83% -0.39% -0.60% 0.09% -0.52% -0.07% -0.07% CHF -0.75% -0.39% -0.57% 0.09% -0.48% -0.04% 0.07% 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 Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).
The USD bias improves after breaching the channel top at 0.8255From a technical perspective, the pair's break of the downside channel is giving bulls hopes to retest the May 22 high at the 0.8300 area. The daily chart shows a morning star formation in process, a bullish sign.

Further appreciation beyond 0.8300 would bring the May 16 high, at 0.8395, into focus. Below 0.8255, supports are at Monday’s 0.8190 low and 0.8120 (April 14, 16 lows and April 21 high).USD/CHF 4-hour Chart

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.

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. Demand remains strong despite the high prices"The strong demand is surprising given the high prices, which are dampening jewelry demand. The background to this is probably that banks were granted higher import quotas, which were likely used even though demand is subdued." "Net imports stood at 43 tons, after net exports to Hong Kong in the previous month. Incidentally, the figures are not particularly newsworthy, as the customs authorities had already reported China's total Gold imports for April."

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 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. CAD eases on the daily chart"The CAD’s unusual, negative relationship with risk appetite remains intact, given the broader gains in stocks. Modest USD gains are liable to run into renewed USD selling interest relatively quickly. The latest IMM data released Friday reflected another jump in net CAD shorts last week as speculative traders and investors responded to soft economic data (and speculation about BoC policy) and spot’s test of the 1.40 area earlier this month." "But elevated core inflation and the ongoing uncertainty over US tariff policy suggests the BoC is likely to remain on hold in the short run at least while the CAD’s strong reversal from the 1.40 zone may extend, testing the resolve of the build-up of short interest in the CAD since the start of May. And if the weak stocks/soft USD trend remains intact, Canadian portfolio managers may have to increase their FX hedges, adding to CAD tailwinds." "USD gains have extended through the 1.3745/50 area that served as support for USDCAD earlier in May but the USD advance may not extend too far. Broader technical signals are USD-bearish and trend strength oscillators remain bearishly-aligned for the USD across the short-, medium– and longterm studies. Typically, this situation only allows for limited counter-trend corrections (higher, in this case). I anticipate firm USD resistance between 1.3785/1.3815 in the short run. USD support is 1.3740 (minor) and 1.3685/90."

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 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. Brent crude oil prices fall"A barrel of Brent crude oil cost $65 again yesterday, although trading was thinner due to public holidays in the US and the UK. The strength is likely due to relief that the threat of new US tariffs against the EU has been postponed for the time being. However, many uncertainties remain, especially with regard to (US) sanctions policy." "On the one hand, there are the nuclear negotiations between the US and Iran. Although these were so far inconclusive, both sides remained optimistic after the fifth round of talks and want to meet again in the near future. A possible easing of sanctions against Iran therefore remains on the table." "On the other hand, however, the mood between Russian President Putin and US President Trump has deteriorated: following Russia's massive attacks on Ukraine, Trump has reiterated that he will absolutely consider new sanctions against Russia. Russia, however, seems keen to play down Trump's reaction."

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.

.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 is positive against major currencies this Tuesday. Markets are supporting the Greenback ahead of important US data later this week.The US Dollar Index heads above 99.00 in search of the 100.00 figure. 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. The stronger Greenback has emerged right at the end of Asian trading hours, after the Japanese Ministry of Finance (MoF) commented that its bond issuance plan might see some tweaking, with lower volumes. This made Japanese yields collapse and saw the Japanese Yen (JPY) devalue against the Greenback, with a domino effect in favor of the US Dollar against several major currencies. While markets are hopeful about a US-EU trade deal in the upcoming days, this week will start with  US data due this Tuesday, after the Memorial Day public holiday, which kept markets closed. Traders can look ahead to the US Durable Goods Orders for April and the Dallas Federal Reserve (Fed) Manufacturing Business Index for May, which is a good leading indicator to see how the manufacturing sector is holding up after the introduction of tariffs. Daily digest market movers: US Durable Goods Orders aheadAt 12:30 GMT, US Durable Goods Orders for April are due. The headline figure is expected to shrink by -7.9%, coming from 9.2% in March. US Durable Goods Orders without Transportation is expected to shrink by -0.1% from 0% in March. At 14:00 GMT, the US Consumer Confidence for May will be released, with no forecast available and the previous figure at 86.0. At 14:30 GMT, the Dallas Fed Manufacturing Business Index for May is due. No forecast available, with the previous number falling sharply by -35.8.Equities are seeing some small gains across the board in Asia and Europe. US futures are advancing much more aggressively, with all three major indices up over 1.50% ahead of the US trading session. The CME FedWatch tool shows the chances of an interest rate cut by the Federal Reserve in June’s meeting are only at a low 2.1%. Further ahead, the July 30 meeting sees odds for rates being lower than current levels at 24.4%. The US 10-year yield comes in at 4.45% at the time of writing, another leg lower from the 4.62% peak performance seen last Thursday. US Dollar Index Technical Analysis: Never a straight pathThe US Dollar Index is due for some recovery after a long stretch of devaluation, and that narrative is picking up this Tuesday after very early signs were seen on Monday. Expect to see the DXY swing back higher and look for firm resistance. That could trigger a firm rejection at higher levels and push the DXY beyond the low of May, causing more devaluation for the Greenback and losses for the DXY. On the upside, the 100.22 level, which held the DXY back in September-October, is the first resistance, followed by the broken ascending trend line near 100.80. Further up, the 55-day Simple Moving Average (SMA) at 101.32 is the next level to watch out for, followed by 101.90, a pivotal level throughout December 2023 and a base for the inverted Head-and-Shoulders (H&S) formation during the summer of 2024. In case US Dollar bulls push the DXY even higher, the 103.18 pivotal level will come into play.Should the DXY see some renewed selling pressure, a nosedive move could materialize towards the year-to-date low of 97.91 and the pivotal level of 97.73. Further below, a relatively thin technical support comes in at 96.94 before looking at the lower levels of this new price range. These would be at 95.25 and 94.56, meaning fresh lows not seen since 2022.US Dollar Index: Daily Chart 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.

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.

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. The latest European confidence releases were largely in line with expectations and showed a modest improvement on the month, Scotiabank's Chief FX Strategist Shaun Osborne notes. France CPI is soft"Germany’s GfK was marginally better than expected and also improved on the month, while France’s preliminary CPI for May unexpectedly printed a negative m/m read and came in lower-than-expected y/y at 0.7%. ECB policymakers remain dovish heading into the June 5 meeting, with markets almost fully pricing a 25bpt rate cut." "The trend for EURUSD remains bullish, given the sequence of higher highs and higher lows since February. The local range remains bound between the mid-May low (1.1065) and the late April high (1.1573) with momentum leaning bullish. Near-term support is expected around 1.1280 and nearterm resistance is expected around 1.1420."

Markets should gear up a bit more after yesterday’s subdued session and early trends suggest the USD may experience a limited rebound.

Markets should gear up a bit more after yesterday’s subdued session and early trends suggest the USD may experience a limited rebound. Overnight trends reflect a recovery in global bonds on the back of speculation that the Japanese government may 'tweak' (i.e. reduce) issuance, Scotiabank's Chief FX Strategist Shaun Osborne notes. USD rebounds modestly as global bonds recover"Stocks are firmer and the USD has enjoyed broad gains against its major currency peers. The JPY is the main underperformer on the session while the MXN and CAD have shed relatively less ground. Dollar gains appear solid on the day, but the DXY’s short-term down trend remains intact and broader worries about the USD outlook, driven by tariffs and the impact on the US economy, concerns about US fiscal policy treds and the administration’s relations with the Fed remain." "Note that the Fed’s Kashkari (non-voter this year) said earlier today that 'moving slowly' on policy may be warranted amid tariff uncertainty. Looking at some of the challenges facing the USD, investors are also showing more awareness of the USD’s relatively elevated, historic valuation (and are starting to consider the risks of a longerterm adjustment in its performance). All that is long hand for our view that there is limited upside potential in the USD in the short run. DXY gains may be contained to the 99.85/100.15 area. The broader trend in the USD remains geared to the downside." "Looking ahead to today’s session, US Durable Goods data are expected to reflect a significant reversal (-7.8% m/m) in April after the sharp (9.2%) rise seen in March. May Conference Board Consumer Confidence is forecast to rise modestly (87.1). There are a number of housing market reports due as well while the Treasury is auctioning USD69bn in 2Y bonds (results at 13ET). Australia reports April CPI data this evening and the RBNZ is expected to cut its benchmark rate 25bps to 3.25%.

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.

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. When US yields were high, the dollar was typically strong, and when US yields were low, the dollar was weak. That is no longer the case. That is why this rise in US yields is different from previous ones, Commerzbank's Head of FX and Commodity Research Ulrich Leuchtmann notes. Rise in US yields is different from previous ones"What is different? In principle, yields can rise for various reasons. US yields can rise because the earnings outlook in the US is improving. If, for example, US companies are expected to make high profits, the government has to pay higher yields to ensure that investors continue to provide it with capital. In this case, the US dollar will also appreciate because, in addition to its purchasing power for consumer goods and services, it is also a ticket to such high-yield investments.""However, T-note yields may also rise because investors demand a higher risk premium before investing their money in the US. Yield increases of this kind are not accompanied by a strong US dollar. On the contrary, in such a scenario, the US dollar tends to depreciate because FX investors typically demand a higher risk premium, too.""We are dealing with the second type of yield increase. Of course, it could also be something completely different. However, until someone comes up with a plausible alternative explanation, this is the most likely explanation. That is why everyone is so excited about it – despite the moderate extent so far."

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.

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. Downward momentum has not increased significantly24-HOUR VIEW: "Following the sharp drop in USD last Friday, we indicated yesterday, Monday, that 'the decline appears to be overdone, but there is a chance for USD to test 7.1650 before stabilisation is likely.' We added, 'the major support at 7.1500 is unlikely to come into view.' USD then dropped to 7.1626 and then quickly rebounded to close largely unchanged (7.1783, +0.09%). Downward pressure appears to have eased, and USD is likely to trade sideways today, probably between 7.1640 and 7.1840." 1-3 WEEKS VIEW: "Yesterday (26 May, spot at 7.1770), we indicated that 'while downward momentum has not increased significantly, as long as 7.2070 (‘strong resistance’ level) is not breached, the bias for USD is on the downside toward 7.1500.' Our update still stands."

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.

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. Euro may struggle to become the next reserve currency"Lagarde is right, in my opinion, when she says: 'A currency's exposure to trade is especially important, as it provides the initial pathway to wider international use.' Reserves are held so that, in the worst case scenario of a balance of payments crisis, they can secure a country's imports. Their adequacy is therefore measured in 'months of import coverage,' for example. If the whole world were to stop trading in dollars and switch to another currency, central banks and finance ministries would also have to shift their reserves into that currency. The dollar-centric world currency 'order' is therefore merely a consequence of its wide use in cross-border transactions by third countries.""Early dissidents from the USD-centric system would have to pay higher transaction costs if they wanted to use an unusual means of transaction. This is why the dollar-centric system is stable and has survived crises. It is therefore not a question of whether the euro would be a slightly better global reserve currency. It could only replace the dollar if continued dollar use became completely unacceptable to a sufficient number of existing users, who would then be willing to bear the early dissident costs. I therefore believe that US sanctions policy could become the biggest risk factor for the dollar's dominance if it becomes unacceptable for large economic areas (e.g., the EU).""Just because the US runs permanent current account deficits and therefore constantly transfers dollars abroad, this does not create a shortage of US dollars in the rest of the world, which constantly needs more of the world's reserve currency. If the euro were the world's reserve currency tomorrow and the eurozone continued to run current account surpluses, there would be a shortage of euros in the rest of the world: to pay for eurozone exports, the rest of the world would have to constantly transfer the new world reserve currency to its issuer – the eurozone. As a result, the euro would appreciate – far more than would be justified from a domestic perspective."

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

.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 Euro extends losses for the fourth consecutive day to test fresh eight-month lows.Soft Eurozone data and dovish ECB comments have added pressure on the Euro.The broader EUR/GBP trend remains negative, with the 0.8325 support coming into view.
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 levels, and, anyway, somewhat below market expectations.Weak Eurozone data and dovish ECB’s Villeroy weigh on the EuroSomewhat later, the Eurozone Consumer Confidence has remained unchanged at -15.2 levels below the long-term average.
The moderate improvements on the Economic confidence, 94.8 from 93.6 in April, and the Industrial confidence, up to -10.3 from -11, have been unable to alter the Euro’s bearish tone.

Beyond that, the dovish comments from ECB’s Villeroy, suggesting that there is still room for further monetary easing and warning about the risks to financial stability stemming from the uncertain trade scenario, have added negative pressure on the Euro. Euro PRICE Today The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen. USD EUR GBP JPY CAD AUD NZD CHF USD 0.38% 0.17% 0.88% 0.19% 0.70% 0.87% 0.80% EUR -0.38% -0.22% 0.47% -0.19% 0.24% 0.40% 0.40% GBP -0.17% 0.22% 0.74% 0.03% 0.44% 0.62% 0.59% JPY -0.88% -0.47% -0.74% -0.66% -0.17% -0.08% -0.07% CAD -0.19% 0.19% -0.03% 0.66% 0.49% 0.60% 0.55% AUD -0.70% -0.24% -0.44% 0.17% -0.49% 0.07% 0.04% NZD -0.87% -0.40% -0.62% 0.08% -0.60% -0.07% -0.07% CHF -0.80% -0.40% -0.59% 0.07% -0.55% -0.04% 0.07% 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).
EUR/GBP Technical Analysis: Bears are pushing against 0.8380 supportThe EUR/GBP remains in a bearish trend from early April highs above 0.8700. The pair broke below 0.8400 on Monday and is now testing fresh eight-week lows below 0.8380.

The next relevant resistance area remains at the late March- early April lows at 0.8325. 

On the upside, the pair should return above 0.8400 and 0.8460 to break the current bearish structure.EUR/GBP 4-hour chart

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).

.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/CAD moves higher to near 1.3760 as the US Dollar bounces back on signs of progress in the US-EU trade deal.The EU asked its domestic firms to provide details of investment plans in the US.Investors await the Canadian Q1 GDP data on Friday ahead of the BoC's monetary policy announcement next week.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).The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, jumps to near 99.35 from the monthly low of 98.70 posted on Monday.During European trading hours, a report from Reuters showed that EU officials have asked the bloc’s companies to share details indicating their investment plans in the US. This stated that the continent is making efforts to speed up progress towards closing trade deal with the US.On Monday, trade tensions between the EU and the US were also diminished and expectations that both economies would reach a potential bilateral deal had increased after comments from European Trade Commissioner Maros Sefcovic at X in which he stated that the EU Commission remains “fully committed to constructive efforts at pace towards an EU-US deal”. “We continue to stay in constant contact," he added.Though the Canadian Dollar (CAD) is underperforming against the US Dollar, it trades higher against other major peers during European trading hours on Tuesday. 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 Japanese Yen. USD EUR GBP JPY CAD AUD NZD CHF USD 0.37% 0.21% 0.89% 0.18% 0.65% 0.85% 0.75% EUR -0.37% -0.18% 0.49% -0.19% 0.21% 0.38% 0.36% GBP -0.21% 0.18% 0.70% -0.01% 0.37% 0.56% 0.49% JPY -0.89% -0.49% -0.70% -0.68% -0.24% -0.11% -0.14% CAD -0.18% 0.19% 0.01% 0.68% 0.45% 0.59% 0.51% AUD -0.65% -0.21% -0.37% 0.24% -0.45% 0.09% 0.03% NZD -0.85% -0.38% -0.56% 0.11% -0.59% -0.09% -0.10% CHF -0.75% -0.36% -0.49% 0.14% -0.51% -0.03% 0.10% 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). This week, the major trigger for the Loonie will be the Q1 and the March Gross Domestic Product (GDP) data, which will be published on Friday. The Canadian economy is expected to have expanded at a moderate pace of 1.6% on an annualized basis, compared to the previously reported 2.6%. Next week, investors will pay close attention to the Bank of Canada’s (BoC) interest rate decision. 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.

European Central Bank (ECB) policymaker Robert Holzmann said on Tuesday that “the ECB should pause further interest rate cuts until at least September.”

.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}} European Central Bank (ECB) policymaker Robert Holzmann said on Tuesday that “the ECB should pause further interest rate cuts until at least September.”Additional quotesWe should keep out powder dry given the US-EU trade war.

No reason to lower rates in June and July.

Cutting further would be more risky than staying where we are now.

Further rate cut would likely have no effect on economic activity.

Economic activity held back by uncertainty rather than restrictive monetary policy.

Borrowing costs have come down so much over the past year that they are no longer slowing down economic activity and are potentially even stimulating growth.

A 'number of people' in the ECB Governing Council are also 'skeptical' about additional rate cuts. Related news Rates spark: Back to tariff headlines, but fiscals still matter EUR/USD retraces on progress in US-EU trade talks, dovish ECB ECB’s Villeroy: Policy normalization in the Euro area is probably not complete

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.

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. The level to monitor is 141.70, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. Risk is still on the downside24-HOUR VIEW: "USD fell to a low of 142.41 last Friday. Yesterday, when USD was at 142.75, we indicated that 'despite the decline, downward momentum has not increased significantly.' We also indicated that 'there is scope for USD to weaken further, but any decline is likely part of a lower range of 142.10/143.45.' USD then traded in a narrower range than expected, dipping to 142.20 before rebounding to 143.08. There has been no increase in downward momentum, but the underlying tone still appears soft. Today, USD could edge lower and retest the 142.20 level. A breach of this level is not ruled out, but any further decline is unlikely to threaten the major support at 141.70. On the upside, resistance levels are at 143.10 and 143.45."1-3 WEEKS VIEW: "We highlighted yesterday that 'the risk is still on the downside, but it remains to be seen if USD can maintain its pace of decline.' We also highlighted that 'the level to monitor is 141.70' and 'a breach of 144.00 (‘strong resistance’ level) would suggest the weakness has stabilised.' Our update is still valid."

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.

.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 Oil prices tick up but remain within previous ranges below $62.00.Market expectations of higher supplies are acting as a headwind for rallies.The technical picture is showing a lack of clear bias, with prices bouncing in a $3.5 range.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. The market is still celebrating the news.

The current recovery, however, is likely to be short-lived, with fears of oversupply looming. A recent report from Goldman Sachs warns that a significant increase by non-OPEC suppliers will send WTI prices to $52 in 2026WTI Oil technical analysis: Prices wavering without a clear biasThe technical picture shows crude prices looking for direction after the rejection at $63.45 resistance area was contained at the $60.00 psychological level.

The 4-hour RSI is wavering around the 50 line, highlighting a lack of clear momentum, but a bullish engulfing candle on Friday’s daily chart is a positive sign.

The intraday bias shows a mild bullish tone, which is likely to be halted at the $62.00 area, at the May 26 high. Above here, the top of the horizontal channel, at $63.50, would be exposed.

On the downside, supports are at the $61.00 intra-day low ahead of the May 15, 22, and 23 lows, at $60.00.WTI Oil 4-Hour Chart 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.

EUR/USD corrects to near 1.1350 during European trading hours on Tuesday after revisiting the monthly high of 1.1425 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}}EUR/USD faces selling pressure above 1.1400 as the US Dollar rebounds on increased hopes of a quick bilateral trade deal between the US and the EU.European officials asked domestic companies to provide details on US investment proposals.Inflation in France cools down in May, potentially increasing the odds of interest rate cuts in June.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 major currency pair faces selling pressure as the US Dollar (USD) strengthens on progress in a potential trade deal between the United States (US) and the European Union (EU).The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, claws back its initial losses and rises 0.4% to near 99.35.According to a report from Reuters, EU officials have asked domestic business owners to submit their US investment plans, a move that reflects significant efforts from the old continent to speed up the formation of a trade proposal. On Monday, a post from European Trade Commissioner Maros Sefcovic at X, stating that the EU is committed to quickening progress towards a trade deal between economies on both sides of the Atlantic, diminished trade tensions. “The EU Commission remains fully committed to constructive efforts at pace towards an EU-US deal. We continue to stay in constant contact," Sefcovic wrote.The US Dollar faced a sharp sell-off on Friday and Monday due to ever-changing statements from Washington over tariff policies to the EU. On Friday, US President Donald Trump proposed 50% tariffs on imports from the EU, but postponed them from June 1 to July 9 after a “good phone call” with European Commission President Ursula von der Leyen, who assured to advance trade negotiations quickly and urged for some time to reach a good deal. The event led financial market participants to reassess the credibility of the US Dollar. Daily digest market movers: EUR/USD faces pressure as ECB officials see room for more interest rate cutsEUR/USD faces selling pressure after the release of the preliminary France Consumer Price Index (CPI) (EU norm) data for May. The CPI report showed that price pressures cooled down significantly as inflation declined by 0.2% on a monthly basis after expanding strongly by 0.7% in April. Year-on-year, the CPI rose at a slower pace of 0.6%, compared to a 0.9% increase seen in April.Soft France’s inflation data is expected to encourage European Central Bank (ECB) officials to incline towards easing the monetary policy further. After the inflation data, ECB policymaker and French central bank chief François Villeroy de Galhau mentioned in a speech that a 0.6% inflation rate is a “very encouraging sign of disinflation in action” and guided a dovish stance on the interest rate outlook, Reuters reported. “Policy normalization in the Euro area is probably not complete”, Villeroy said.Separately, ECB Governing Council member and Lithuania's central bank Governor Gediminas Šimkus has warned of downside risks to inflation in the wake of a stronger Euro (EUR) and trade frictions with the US. Šimkus sees scope for an “interest rate reduction in June”.Meanwhile, financial market participants have fully priced in that the ECB will reduce its Deposit Facility Rate by 25 basis points (bps) to 2% in the monetary policy meeting next week.Ahead of the ECB meeting, officials would also have the flash inflation data for May from Germany and its six states, Spain, and Italy on Friday, and the broader Eurozone on June 3.Technical Analysis: EUR/USD holds key 20-day EMAEUR/USD corrects from the month high of 1.1420, trading near 1.1350 at the time of writing on Tuesday. However, the near-term outlook of the pair remains bullish as it holds the 20-day Exponential Moving Average (EMA), which is around 1.1277.The 14-period Relative Strength Index (RSI) struggles to break above 60.00. Bulls would come into action if the RSI breaks above that level.Looking up, the April 11 high of 1.1475 will be the major resistance for the pair. Conversely, the September 25 high of 1.1215 will be a key support for the Euro bulls. 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 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

.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 Euro loses momentum on mixed data and dovish ECB's Villeroy.The pair´s bearish correction from 1.5760 is holding above 1.5600 so far.Higher Oil prices and dwindling hopes of BoC cuts are supporting the CAD.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 downside attempts contained above 1.5880 so far.Mixed Eurozone data and dovish comments from ECB’s VilleroyIn the macroeconomic domain, Eurozone data has been mixed. The German GFK consumer Confidence Index remained at downbeat levels, while the Eurozone Economic Sentiment and Industrial Confidence figures have shown a moderate improvement.

Earlier today, ECB’s Villeroy struck a dovish tone, noting that there is still room for further monetary easing and warning about the potential impact of a trade war on the Eurozone’s financial stability and economic growth prospects.

The Canadian Dollar, on the other hand, is firming up on the back of a moderate pickup in Oil prices.

Beyond that, the positive Retail Sales data released on Friday has eased concerns triggered by the weak employment figures seen earlier this month, and prompted investors to dial back BoC easing expectations for next month. 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 New Zealand Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.34% 0.17% 0.71% 0.19% 0.65% 0.77% 0.60% EUR -0.34% -0.18% 0.36% -0.14% 0.22% 0.34% 0.24% GBP -0.17% 0.18% 0.57% 0.03% 0.38% 0.51% 0.38% JPY -0.71% -0.36% -0.57% -0.48% -0.06% -0.00% -0.10% CAD -0.19% 0.14% -0.03% 0.48% 0.43% 0.49% 0.35% AUD -0.65% -0.22% -0.38% 0.06% -0.43% 0.03% -0.10% NZD -0.77% -0.34% -0.51% 0.00% -0.49% -0.03% -0.16% CHF -0.60% -0.24% -0.38% 0.10% -0.35% 0.10% 0.16% 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).

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.”

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

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The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 99.78 on Tuesday, broadly unchanged from 99.84 on Monday. 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.)

Early tomorrow morning (European time), the Reserve Bank of New Zealand (RBNZ) will announce its decision on interest rates.

Early tomorrow morning (European time), the Reserve Bank of New Zealand (RBNZ) will announce its decision on interest rates. All of the economists surveyed by Bloomberg expect a rate cut, with the vast majority predicting a reduction of 25 basis points, Commerzbank's FX analyst Michael Pfister notes. RBNZ to make minor adjustments to its forecast for the key interest rate"Although inflation was slightly higher than expected in the first quarter, it remains within an acceptable range. The weak real economy provides no reason for real interest rates to remain restrictive. While the unemployment rate remained unchanged at 5.1% in the first quarter, this was only possible due to a lower participation rate. In addition, wage growth continued to slow.""Things are likely to become particularly interesting regarding the new forecasts. The global turmoil triggered by Trump's tariffs is unlikely to bypass New Zealand, dampening growth prospects. However, following tomorrow's interest rate cut, the key interest rate will probably have reached a level at which the RBNZ will proceed more cautiously after lowering it significantly in recent months." "We therefore believe that the RBNZ will only make minor adjustments to its forecast for the key interest rate, which would ultimately result in a neutral decision for the New Zealand dollar."

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.

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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

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This made Japanese yields collapse and saw the Japanese Yen (JPY) devalue against the US Dollar, triggering a spillover effect in favor of the Greenback against several other major currencies. A stronger US Dollar makes Gold more expensive for most buyers, and thus it is seen as a headwind.Daily digest market movers: Some headwinds at playDemand for safer assets like Gold has been impacted as signs emerge that the White House may be making progress in negotiations with some trading partners. Gold-backed Exchange Traded Funds (ETFs) registered five straight weeks of outflows since peaking at the highest in more than a year in mid-April, Bloomberg reports. One of China’s biggest Gold miners is planning its second US Dollar bond offering in two weeks, the latest in a slew of global companies looking to tap growing investor interest in the precious metal. Shandong Gold Group is considering issuing a roughly $100 million perpetual bond as soon as this week. The potential sale comes after it already raised $300 million via a three-year bond offering earlier this month, Bloomberg reports. Harmony Gold Mining Co. has agreed to buy MAC Copper Ltd., enabling the top producer of South African Gold to gain a further foothold in Australia and increased exposure to Copper. Harmony is offering $12.25 for each MAC share, implying a total equity value for the Australian company of about $1.03 billion, Reuters reports. There are still tailwinds at play, with markets remaining in wait-and-see mode, weighing several risks, including the swelling US deficit, ongoing trade talks, and worsening conflicts in the Middle East and Ukraine.Gold Price Technical Analysis: Downside pressure appears Some downside pressure appears on Gold’s price this week. The headwinds mentioned above could be proven quite persistent, as the US Dollar has already experienced a long stretch of devaluation and is due for some recovery at the expense of the precious metal. Add some more possible positive signs on trade talks, and any prospects of Gold extending its highs might fall short of expectations. On the upside, the daily Pivot Point at $3,341 is the first level to look out for, followed by the R1 resistance at $3,359. Further up, the R2 resistance at $3,374 follows not far behind and could open the door for a return to the $3,400 round level and potentially further course to $3,440, coinciding with May 6 and May 7 peaks. On the other side, some thick-layered support emerges in case the Gold price declines. In case the $3,300 mark breaks, some intermediary support could come from the S2 support at $3,275. Further below, there is a technical pivotal level at $3,245 (April 11 high). 
XAU/USD: Daily Chart 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.

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.

.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/USD may target a six-month high at 0.6537, reached on Monday.The RSI remains above the 50 level, reinforcing the prevailing bullish bias.The crucial support appears at the nine-day EMA of 0.6448.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.The short-term price momentum is still stronger as the AUD/USD pair remains slightly above the nine-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) also remains comfortably above 50, suggesting sustained upward momentum.On the upside, the AUD/USD pair could test a six-month high at 0.6537, which was recorded on May 26. A successful break above this level could reinforce the bullish bias and lead the pair to approach the upper boundary of the ascending channel around 0.6620, followed by the seven-month high at 0.6687, recorded in November 2024.The AUD/USD pair is testing the immediate support at the nine-day EMA of 0.6448. A break below this level could weaken the bullish bias and prompt the pair to test the ascending channel’s lower boundary around 0.6420, followed by the 50-day EMA at 0.6379.Further decline below this crucial support zone could cause the emergence of the bearish bias and open the doors for the AUD/USD pair to navigate the region around 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 US Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.32% 0.21% 0.69% 0.19% 0.65% 0.78% 0.52% EUR -0.32% -0.13% 0.36% -0.12% 0.26% 0.36% 0.18% GBP -0.21% 0.13% 0.51% 0.00% 0.36% 0.49% 0.27% JPY -0.69% -0.36% -0.51% -0.46% -0.03% 0.01% -0.16% CAD -0.19% 0.12% -0.00% 0.46% 0.44% 0.49% 0.26% AUD -0.65% -0.26% -0.36% 0.03% -0.44% 0.02% -0.19% NZD -0.78% -0.36% -0.49% -0.01% -0.49% -0.02% -0.25% CHF -0.52% -0.18% -0.27% 0.16% -0.26% 0.19% 0.25% 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).

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.

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. Pair was last at 143.83 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note. Risks remain skewed to the downside"Hotter than expected data keeps BoJ hike hopes alive and remains in line with our view that wage growth, broadening services inflation and upbeat economic activities in Japan should continue to support BoJ policy normalisation although tariff uncertainty may temporarily delay policy normalisation in the near term." "While the timing of BoJ policy normalisation may be deferred, policy normalisation is not derailed. Fed-BoJ policy divergence and USD diversification theme should still support USDJPY's broader direction of movement to the downside." "Daily momentum is mild bearish while RSI fell. Risks remain skewed to the downside. Next support at 142, 141.60 before 139.90 (recent low in Apr). Resistance at 144.40/60 levels (21 DMA, 23.6% fibo retracement of 2025 high to low) and 145.70 (50 DMA)."

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.

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. Conditions remain overbought24-HOUR VIEW: "While we expected NZD to 'rise further' yesterday, we noted that 'due to the deeply overbought conditions, any advance is unlikely to reach the major resistance level at 0.6030.' However, NZD tested the 0.6030 level, touching 0.6031 before easing. Given the still overbought conditions, NZD is unlikely to rise further. Today, NZD is more likely to trade in a range, probably between 0.5960 and 0.6020." 1-3 WEEKS VIEW: "Yesterday, 26 May, when NZD was at 0.5990, we noted that 'While there has been an increase in momentum, it is not enough to indicate a sustained rise just yet.' We added, 'for a sustained advance, NZD must break and hold above the significant resistance at 0.6030.' NZD subsequently rose to 0.6031 before easing. The condition for a decisive break above 0.6030 is not met. However, the likelihood of NZD breaking clearly above 0.6030 will remain intact as long as 0.5920 (no change in ‘strong support’ level) holds."

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.

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. Consolidation not ruled out intra-day"Daily momentum shows signs of turning mild bearish but decline in RSI shows signs of moderation. Consolidation not ruled out intra-day. Next support at 97.90 (2025 low), 97.40 levels. Resistance at 100.1 (21 DMA) and 100.80 (23.6% fibo retracement of 2025 peak to trough)." "For now, tariff uncertainties have re-surfaced following Trump’s tariff threat on EU (although it is delayed) and smartphone makers. It remains unclear if tariffs on pharmaceutical and semiconductors are still coming. Two weeks ago, Trump also said that the US will send letters to some of its trading partners to unilaterally impose new tariff rates in the coming weeks." "It is also unclear if these are new tariff rates on top of those earlier announced or if they supersede previously announced tariffs rates. Policy unpredictability surrounding Trump’s tariffs, ballooning debt and deficits are some US-centric risks that may continue to undermine confidence in the USD."

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.

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. Upwards momentum builds up fast24-HOUR VIEW: "Last Friday, AUD soared to 0.6500. In the early Asian session yesterday, we indicated that 'the rapid advance appears to be excessive, but there is scope for AUD to rise above 0.6515, the high seen earlier this month.' We added, 'given the overbought conditions, any further advance is unlikely to reach 0.6550.' AUD then rose to 0.6537, pulling back to close modestly lower at 0.6490 (-0.13%). AUD has not fully unwound from overbought conditions. Today, we expect AUD to consolidate in a range between 0.6455 and 0.6510." 1-3 WEEKS VIEW: "We revised our view to positive yesterday (26 May, spot at 0.6495), indicating that 'there has been a rapid buildup in momentum, and we expect AUD to trade with an upward bias toward 0.6550.' We will maintain the same view as long as AUD remains above 0.6430 (no change in ‘strong support’ level)."

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

.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 Euro extends its rebound from 161.00 to levels above 163.00.The Yen is losing ground alongside a sharp decline in super long-term Japanese yields.ECB’s Lagarde affirmed the Euro’s position as a viable alternative to the US Dollar. 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 aiming for the 163.45 area, favoured by broad-based Yen weakness.Japan is considering reducing long-term bond salesNews that Japan’s Ministry of Finance is considering reducing the super long-term bond issuance for the fiscal year has triggered a sharp decline in the yields of the 20, 30, and 40 JGB yields.

The hawkish comments by BoJ Governour Ueda, highlighting the upside risks of inflation, and keeping hopes for further rate hikes alive, have failed to provide any significant support to the Yen.

The Euro, on the other hand, maintains a moderately positive tone on higher hopes of a deal with the US, which will avoid high tariffs.

Comments from ECB President Lagarde on Monday, suggesting that the Euro might become a viable alternative to the US Dollar amid Trump’s erratic trade policy and growing concerns of a debt crisis, have provided additional support to the common currency.
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 New Zealand Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.28% 0.17% 0.57% 0.20% 0.58% 0.69% 0.50% EUR -0.28% -0.13% 0.29% -0.09% 0.20% 0.30% 0.18% GBP -0.17% 0.13% 0.43% 0.04% 0.31% 0.43% 0.28% JPY -0.57% -0.29% -0.43% -0.35% 0.00% 0.04% -0.07% CAD -0.20% 0.09% -0.04% 0.35% 0.36% 0.40% 0.24% AUD -0.58% -0.20% -0.31% -0.01% -0.36% 0.00% -0.14% NZD -0.69% -0.30% -0.43% -0.04% -0.40% -0.01% -0.18% CHF -0.50% -0.18% -0.28% 0.07% -0.24% 0.14% 0.18% 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).

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.

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. The latest update from February had rates bottoming at 3.0% at the end of 2025. That was before 'Liberation Day', and the year-end projection might be revised below 3.0%, ING's FX analyst Francesco Pesole notes.NZD/USD can eye 0.610 in the coming weeks"Markets are, however, starting to have some doubts about how far rates can be trimmed. The NZD OIS pricing for the last meeting of 2025 (in November) is at 2.85%, having risen over 10bp since early May. That’s because growth risks have abated after the US-China deal, allowing more focus on a not-so-convincing inflation picture." "Non-tradable inflation surprisingly accelerated in the first quarter, while the more forward-looking two-year inflation expectations have rebounded to 2.3% from 2.06%. Meanwhile, PMIs have been resilient, and first-quarter data showed no dip in retail sales, while unemployment failed to climb.""We think the Kiwi dollar is in a good position. Even if the RBNZ ends up signalling it can take rates below 3.0%, the negative impact for NZD may not be long-lived. Inflation prevents markets from going too aggressive on RBNZ cuts, and recovering sentiment on China and in global equities can keep fuelling demand for the high-beta NZD. We think NZD/USD can eye 0.610 in the coming weeks."

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.

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. Upward momentum remains strong24-HOUR VIEW: "GBP soared to 1.3550 last Friday. Yesterday, Monday, we indicated that 'while strong upward momentum indicates further GBP strength, overbought conditions suggest that any advance is unlikely to reach 1.3600.' We were not wrong, as GBP rose to 1.3593 before trading mostly sideways. The current price movements are likely part of a consolidation. Today, we expect GBP to trade between 1.3540 and 1.3600." 1-3 WEEKS VIEW: "Our update from yesterday (26 May, spot at 1.3530) remains valid. As highlighted, following last Friday’s price movements, 'upward momentum remains strong, and the next objective is 1.3635.' On the downside, a break of 1.3460 (‘strong support’ level previously at 1.3420) would indicate that the upward pressure that started in the middle of last week has faded."

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.

.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 could appreciate as safe-haven demand fades amid the easing US-EU trade tension.Trump extended the tariff deadline on EU imports after speaking to EC President Ursula von der Leyen.The Australian Dollar could have received support as China Industrial Profits rose 3% YoY in April.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. This sentiment is driven by the easing trade tension between the United States (US) and the European Union (EU) improves the traders’ risk appetite.Following Friday’s threat by Trump to impose a 50% tariff on imports from the European Union, the US President decided to extend the tariff deadline on the European Union (EU) after having a phone call with European Commission President Ursula von der Leyen on Sunday. On Monday, the EU agreed to accelerate negotiations with the United States (US) to avoid a transatlantic trade war.On Tuesday, Japan’s Finance Minister Shunichi Kato noted that interest rates indicate various factors, but the market considers rising rates as reflecting concerns over the country’s fiscal health. Kato added that the government will closely monitor the bond market situation, including the super-long sector.The Australian Dollar (AUD) could have gained some support as China Industrial Profits rose 3% year-over-year in April, following a previous growth of 2.6%. Additionally, the profits increased 1.4% YoY in the first four months of 2025, advancing from 0.8% growth in the January–March period. Any change in China's economy could impact the AUD due to a close trade relationship with Australia.The Chinese state media outlet, Global Times, said that positive developments helped drive industrial profits in April. The State media outlet also cited that new driving force sectors like equipment and high-tech manufacturing saw rapid profit growth, highlighting industrial resilience. Risk sentiment FAQs What do the terms"risk-on" and "risk-off" mean when referring to sentiment in financial markets? In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest. What are the key assets to track to understand risk sentiment dynamics? Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit. Which currencies strengthen when sentiment is "risk-on"? The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity. Which currencies strengthen when sentiment is "risk-off"? The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.

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.

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. It’s not a case of the greenback suddenly rediscovering its safe-haven status – by most measures, it hasn’t – but more a reflection that markets had largely filed tariffs under 'April risks'. The focus for May and beyond was supposed to be on trade deals. Admittedly, some agreements were always going to take time, and the EU never looked like an easy one. Still, the renewed standoff between Trump and the EU is a reminder that tariff threats and delays can re-emerge quickly. If there’s a lesson from April, it’s that the dollar bears the brunt of tariff drama, ING's FX analyst Francesco Pesole notes.DXY more likely to retest the 98.0 April lows"Our short-term fair value model, which looks at the past year’s FX correlations with rates and equities, still points to the dollar being highly undervalued: around 4% versus the euro, sterling and Canadian dollar, 3% versus the Japanese yen and Aussie dollar. But for now, we have to set that aside; the greenback still isn’t trading in line with the classic market drivers. In many respects, it’s behaving more like an emerging market currency, where investors are fixated on public finance sustainability, watching capital flows closely, and forced to factor in unpredictable policy moves. The decoupling is clear – the 60-day correlation between 10-year Treasury yields and DXY started the year at 0.68, and now sits at zero.""For now, the best hope for the dollar is that incoming data calms recession worries. That’s needed, as deficit concerns are starting to shake the dollar’s already fragile footing. It’s not so much that Trump’s spending bill blows out the deficit overnight, but more that this was a rare opportunity for Congress to address the deficit issue, and it’s been missed. The risk is that US creditworthiness worries remain a drag into the summer, as Treasury auctions could still point to lukewarm demand.""FX liquidity was thin on Monday due to a US and UK public holiday. Today, we’ll get a better sense of direction. Our view is that the balance of risks remains skewed to the downside for the dollar due to deficit concerns and trade uncertainty, unless US data comes in convincingly stronger than expected. A retest of the 98.0 April lows in DXY looks more likely than a rebound to 100.0 at this point."

"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.

"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. But this is not a privilege that will simply be given to us. We have to earn it'. She also highlighted that there should be more joint financing on the European level for measures including defense. EUR was last seen at 1.1349 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note. Bearish momentum on daily chart has faded"Progress on that front would mean investors would have a deeper pool of securities to tap into. She added that Economic logic tells us that public goods need to be jointly financed, and this joint financing could provide the basis for Europe to gradually increase its supply of safe assets. This is also consistent with Schnabel’s earlier comments that a large European bond market is a prerequisite for a greater role for the Euro." "Taken together, Lagarde’s remarks is consistent with her earlier comments in attempting to position the EUR as a credible alternative reserve currency.' She had earlier said that Euro’s recent appreciation was ‘counterintuitive but justified', she implicitly acknowledges a shift in global capital preferences – driven not just by macroeconomic fundamentals, but also waning confidence in the US governance and policy predictability. We see room for EUR to go higher but near term, there may a technical risk of a pullback." "Bearish momentum on daily chart faded but rise in RSI shows signs of moderation from near overbought conditions. On price action, rising wedge pattern may be forming. This can be associated with a bearish reversal but remains early to concur. We continue to watch price action. Resistance at 1.1420/30 levels. Decisive break puts next resistance at 1.1570 (recent high). Failing which, the pair may revert to trading recent range. Support at 1.1280 (21 DMA), 1.1235 (23.6% fibo retracement of 2025 low to high) and 1.1150 (50 DMA)."

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.

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. A decisive break above 1.1435 can push EUR to 1.147524-HOUR VIEW: "We highlighted yesterday that EUR 'could test the major resistance at 1.1400, but a sustained rise above this level is unlikely.' We pointed out, 'the next major resistance at 1.1435 is also unlikely to come under threat.' Our analysis turned out to be correct, as EUR rose to 1.1418 and then eased off to close at 1.1387, up 0.20%. Although upward momentum is slowing, there is scope for EUR to edge higher today. However, any advance is likely part of a 1.1360/1.1420 range. To put it another way, EUR is unlikely to break clearly above 1.1420." 1-3 WEEKS VIEW: "Last Thursday (22 May, spot at 1.1325), we indicated that 'the price action suggests further EUR strength, with 1.1400 now in focus.' Yesterday (26 May), when EUR was at 1.1370, we stated that 'the likelihood of EUR breaking above 1.1400 is increasing.' We also stated that 'should EUR break above 1.1400, there is a relatively nearby resistance at 1.1435.' EUR/USD subsequently rose to a high of 1.1418. As stated, the next level to monitor is 1.1435. A decisive break above 1.1435 could push EUR to 1.1475, with potential for further gains. Conversely, should EUR break below 1.1320 (‘strong support’ level was at 1.1275), it would mean that the EUR strength from the middle of last week (see annotations in the chart below) has come to an end."

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 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. EUR/USD touched 1.1420 on Monday before drifting just below 1.140. With normal trading volumes returning, the pair could inch higher again today, ING's FX analyst Francesco Pesole notes. Political fragmentation in Europe remains a headwind"European Central Bank President Christine Lagarde’s comments yesterday were notable – she talked about a potential 'global Euro moment,' arguing that coordinated government action could boost the Euro’s international role. Part of the recent overvaluation in EUR/USD likely reflects this narrative. If European policymakers continue to push the idea, we could see strategic long positions in the Euro build even faster. Lagarde’s enthusiasm is understandable; a stronger, more global Euro supports bond market stability and keeps rates lower, while nominal appreciation helps cap inflation. But exporters are already voicing concerns about the strong Euro, and national governments, especially those with stronger finances, may be less keen, as they already enjoy low borrowing costs.""A currency’s global appeal hinges on the depth of its bond market. Competing with the dollar would mean the Euro needs a reliable plan for continuous common EU debt issuance, not just occasional moves like for the pandemic response. Political fragmentation in Europe also remains a headwind to the grander ambitions for the Euro’s global role, so we’d caution against too much optimism on that front. Still, any serious moves in this direction would likely push EUR/USD even higher.""Upside potential for EUR/USD following the recent deficit concerns in the US is likely to extend to 1.150. At that level, markets would, however, require additional catalysts to stay long the pair. Our view remains that EUR/USD will ultimately settle back around 1.130 by the end of June."

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.

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The GBP/USD pair ticks lower, while the outlook of the US Dollar is still fragile as investors struggle to predict how bilateral deals by the United States (US) with its trading partners will shape its economic outlook.At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps to near 99.35 after attracting bids near the monthly low of 98.70.Federal Reserve (Fed) officials have predicted that new economic policies by US President Donald Trump will prompt stagflation risks in the economy, and any monetary policy adjustment would be inappropriate until the scale of increase in inflation and weakness in economic growth can be anticipated.On Monday, Minneapolis Federal Reserve President Neel Kashkari affirmed, “There’s no question that the shock of tariffs is stagflationary”. “Uncertainty is something that is top of the mind for the Fed and US businesses, and we’re trying to navigate where inflation and the labor market are going,” Kashkari added.Another reason behind weakness in the US Dollar is uncertainty over Washington’s trade discussions with Japan, China, and the European Union (EU). Over the weekend, US President Trump extended the deadline for 50% tariffs on the EU to July 9 from June 1 after European Commission President Ursula von der Leyen assured that the continent will advance trade negotiations quickly and urged for some time to reach a good deal.On the economic front, investors await the US Durable Goods Orders data for April, which will be published at 12:30 GMT. The cost of fresh orders for Durable Goods is expected to have declined by 7.9% after a robust increase of 9.2% in March.Daily digest market movers: Pound Sterling outperforms its peersThe Pound Sterling reflects some strength against most of its major peers on Tuesday as traders become increasingly confident that the monetary expansion cycle by the Bank of England (BoE) would be moderate than what the central bank guided in its policy announcement earlier this month.According to a report from Reuters, the futures market shows traders see borrowing rates falling by around 38 basis points (bps) by the end of this year, indicating one 25 bps interest rate cut and a roughly 50% odds of a second.Major triggers behind the increase in traders’ confidence towards a moderate policy-easing stance are robust United Kingdom (UK) Q1 Gross Domestic Product (GDP) growth, hotter-than-projected Consumer Price Index (CPI), and upbeat Retail Sales data for April.This month, the Office for National Statistics (ONS) reported that the economy grew at a robust pace of 0.7% in the first quarter of the year, the headline CPI accelerated at a faster pace to 3.5% on year, and the Retail Sales expanded strongly by 1.2% on month. In the policy meeting earlier this month, the BoE reduced borrowing rates by 25 bps to 4.25% with a 7-2 vote split and guided a “gradual and careful” interest rate cut approach. BoE Chief Economist Huw Pill was one of the two policymakers who voted for leaving interest rates at their current levels. Pill expressed confidence in a speech at Barclays in London last week that the “underlying disinflation process remains intact”. His vote in favor of holding interest rates steady was to indicate that the central bank needs to be cautious on rate cuts. “Quarterly pace of 25 bps cuts seen since last summer is too rapid given the inflation outlook,” Pill said and added, “Pace of quarterly cuts too rapid given the balance of risks to price stability we face.”Technical Analysis: Pound Sterling retraces to near 1.3550The Pound Sterling corrects to 1.3550 against the US Dollar on Tuesday after hitting a fresh three-year high the previous day. The near-term trend of the GBP/USD pair remains bullish as all short-to-long term Exponential Moving Averages (EMAs) are sloping higher.The 14-day Relative Strength Index (RSI) rises to near 70.00, indicating a strong bullish momentum. On the upside, the January 13, 2022, high of 1.3750 will be a key hurdle for the pair. Looking down, the April 28 high of 1.3445 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.

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.

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Personally, I find arguments against looking through tariff-induced inflation more compelling.

These arguments support stance of maintaining fed's policy rate until there is more clarity on path for tariffs, their impact on prices and economic activity.Market reactionThese comments help the Greenback’s recovery, with the US Dollar Index (DXY) adding 0.36% on the day, currently trading at 99.35. 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.

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.

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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.The Dollar Index is trading higher on Tuesday with US markets coming back from a long weekend and investors relieved by Trump’s decision to delay the deadline for a trade deal with the EU until July 9.tariffThe US president backed off from his threat to impose 50% levies on all EU imports, which would have slashed global growth prospects. The commercial activity of the US and the Euro Area accounts for 30% of global trade and 43% of global GDP.

Dollar’s recovery, however, night have short legs, as concerns about the ballooning US debt are looming. The US Senate will discuss a tax-slashing bill that is expected to raise the $36.2 trillion debt pile by $3.8 trillion over the next ten years. This fuelled a gradual sell-off on US assets during the previous week.

Later today, the US Durable Goods Orders and the Conference Board's Consumer Sentiment Index will provide further insight into the impact of Trump's tariff turmoil in the US economy. These figures are likely to set the USD direction ahead of the FOMC minutes and the key Personal Consumption Expenditures (PCE) Price Index figures, due later this week.

In New Zealand, the RBNZ is expected to cut rates by 25 basis points to 3.25% on Wednesday, and investors are bracing for a dovishly-leaning statement. The bank might point to further monetary easing, citing the potential impact of the uncertain trade scenario. This would add pressure on the Kiwi.
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.

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.”

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Balance of risks for inflation is to the downside due to trade friction with the US and stronger euro.

Borrowing costs are currently at the upper end of the neutral range.Market reactionEUR/USD was last seen trading at 1.1339, down 0.40% on the day. 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.
.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 Tuesday, May 27:The US Dollar (USD) benefits from the improving risk mood early Tuesday, while trading conditions normalize following a three-day weekend in the US. The European Commission will publish business and consumer sentiment data for May. Later in the day, the US economic calendar will feature April Durable Goods Orders and May CB Consumer Confidence Index data. US Dollar PRICE Today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.32% 0.21% 0.56% 0.16% 0.56% 0.57% 0.36% EUR -0.32% -0.13% 0.24% -0.16% 0.15% 0.16% 0.01% GBP -0.21% 0.13% 0.39% -0.04% 0.26% 0.28% 0.10% JPY -0.56% -0.24% -0.39% -0.38% -0.00% -0.06% -0.20% CAD -0.16% 0.16% 0.04% 0.38% 0.37% 0.33% 0.14% AUD -0.56% -0.15% -0.26% 0.00% -0.37% -0.08% -0.24% NZD -0.57% -0.16% -0.28% 0.06% -0.33% 0.08% -0.21% CHF -0.36% -0.01% -0.10% 0.20% -0.14% 0.24% 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 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 Index edged lower on Monday as markets adopted a cautious stance to start the week. In the European morning on Tuesday, US stock index futures rise more than 1% on the day and the USD Index recovers toward 99.50, reflecting a positive shift in risk sentiment. EUR/USD stays under modest bearish pressure and trades at around 1.1350 in the early European session. The data from Germany showed on Tuesday that the GfK Consumer Confidence Index for June edged slightly higher to -19.9 from -20.8. This reading came in worse than the market expectation of -19.7.During the Asian trading hours, Bank of Japan (BoJ) Governor Kazuo Ueda acknowledged that they are close to the inflation target than any time in the last few decades but added that they are not quite there yet. "In light of growing uncertainties, particularly those related to trade policy, we have recently revised down our economic and inflation outlook," Ueda added. After posting small gains on Monday, USD/JPY stretches higher early Tuesday and trades above 143.50.GBP/USD loses its traction and trades in negative territory below 1.3550 after posting marginal gains on Monday.NZD/USD turns south on Tuesday and trades below 0.6000. The Reserve Bank of New Zealand (RBNZ) will announce monetary policy decisions in the Asian session on Wednesday. The RBNZ is expected to lower the policy rate by 25 basis points.Gold struggles to find demand as a safe haven and continues to push lower toward $3,300 after posting small losses on Monday. Risk sentiment FAQs What do the terms"risk-on" and "risk-off" mean when referring to sentiment in financial markets? In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest. What are the key assets to track to understand risk sentiment dynamics? Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit. Which currencies strengthen when sentiment is "risk-on"? The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity. Which currencies strengthen when sentiment is "risk-off"? The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.

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.

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Crude Oil prices depreciate as the OPEC+, Organization of the Petroleum Exporting Countries and their allies, could decide to raise output by an additional 411,000 barrels per day (bpd) for July at a meeting scheduled this week. The group may also reverse the remaining 2.2 million bpd voluntary production cut by the end of October, per Reuters.On Monday, three sources within the OPEC+ group told Reuters that eight country members of the OPEC+, who pledged additional voluntary cuts, could meet on May 31. These members had already agreed to accelerate Oil output increases for a second month in June. OPEC+ is likely to decide output quotas in an online ministerial meeting on May 28, Russian Deputy Prime Minister Alexander Novak said.Additionally, the outlook for the Oil demand faces uncertainty amid growing concerns over the US economy. The 'Sell America' theme dampens the US markets’ sentiment, driven by Moody’s downgrading the US credit rating from Aaa to Aa1. The credit agency cited surging United States’ (US) debt levels and Washington’s persistent gridlock over budget deficit solutions as an explanation for downgrading its US credit rating for the first time since 1917,US President Donald Trump's “One Big Beautiful Bill” is set to be voted on in the Senate. The Bill is expected to raise the deficit by $3.8 billion, according to the Congressional Budget Office (CBO). The Bill’s provisions, including tax cuts, spending increases, along raising the debt ceiling, could worsen US government finances and increase the risk of bond yields staying higher for longer. Higher bond yields can keep borrowing costs higher for consumers, businesses, and governments in the US, the largest Oil consumer, which is not good for crude demand.The downside of the Oil prices could be restrained due to easing trade tension between the United States (US) and the European Union (EU) improves the traders’ risk appetite. After Friday’s threat, Trump stepped back and decided to extend the tariff deadline on the European Union (EU) after having a phone call with European Commission President Ursula von der Leyen on Sunday. On Monday, the EU agreed to accelerate negotiations with the United States (US) to avoid a transatlantic trade war.On Tuesday, US Durable Goods Orders, the Dallas Fed Manufacturing Index, and the Conference Board’s Consumer Confidence report are scheduled to be released. Later this week, the release of the latest FOMC Minutes on Wednesday and the PCE inflation data on Friday will be gauged by market participants to gain fresh insights into the Federal Reserve’s (Fed) interest rate outlook. 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.

European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Tuesday that “policy normalization in the Euro area is probably not complete.”

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French inflation is a positive indicator.Market reactionEUR/USD is losing 0.32% on the day to trade at 1.1345 when writing. Euro PRICE Today The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the US Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.35% 0.21% 0.50% 0.12% 0.59% 0.56% 0.38% EUR -0.35% -0.16% 0.15% -0.23% 0.15% 0.11% 0.00% GBP -0.21% 0.16% 0.33% -0.07% 0.29% 0.28% 0.13% JPY -0.50% -0.15% -0.33% -0.36% 0.09% -0.01% -0.11% CAD -0.12% 0.23% 0.07% 0.36% 0.44% 0.35% 0.20% AUD -0.59% -0.15% -0.29% -0.09% -0.44% -0.12% -0.26% NZD -0.56% -0.11% -0.28% 0.01% -0.35% 0.12% -0.17% CHF -0.38% -0.00% -0.13% 0.11% -0.20% 0.26% 0.17% 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).

Silver prices (XAG/USD) are dropping beyond 1% on Monday, weighed by a moderately positive market sentiment and a mild US Dollar recovery.

.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}Silver prices lost ground on a somewhat stronger USD and a mild risk appetite.Ongoing concerns about the ballooning US debt might cap US Dollar's gains.XAG/USD is likely to find support at the $32.90-33.00 area.Silver prices (XAG/USD) are dropping beyond 1% on Monday, weighed by a moderately positive market sentiment and a mild US Dollar recovery. Trump’s de-escalation of the tariff rift with Europe has boosted market sentiment, dampening demand for safe assets like precious metals.

The US president delayed a plan to impose 50% tariffs on all Eurozone imports from June 1 after a phone call with EU Commissioner, Ursula von der Leyen. This has calmed investors’ fears about a severe impact on international trade and on the global economic growth prospects.US debt concerns might limit the Dollar’s recoveryThe US Dollar rebound, however, is likely to face resistance amid the growing concerns about the US fiscal health. Last week’s downgrade of the US debt ratings and the impact of a tax-slashing bill have boosted fears of a debt crisis in the US, which fuelled a “Sell America” trade last week.

Trump’s “big, beautiful tax bill”, which will be discussed by the US senate over the coming weeks, is expected to add $3.8 trillion to a $36,2 trillion debt pile over the next years. This is likely to act as a headwind for the US Dollar and keep Silver dips limited. US Dollar PRICE Today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.27% 0.13% 0.40% 0.09% 0.48% 0.47% 0.29% EUR -0.27% -0.16% 0.15% -0.18% 0.13% 0.09% -0.00% GBP -0.13% 0.16% 0.31% -0.02% 0.26% 0.25% 0.12% JPY -0.40% -0.15% -0.31% -0.31% 0.06% -0.03% -0.13% CAD -0.09% 0.18% 0.02% 0.31% 0.36% 0.28% 0.14% AUD -0.48% -0.13% -0.26% -0.06% -0.36% -0.11% -0.25% NZD -0.47% -0.09% -0.25% 0.03% -0.28% 0.11% -0.17% CHF -0.29% 0.00% -0.12% 0.13% -0.14% 0.25% 0.17% 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).
XAG/USD might find support at the $32.90-33.00 areaFrom a technical perspective, XAG/USD is going through a choppy consolidation following April’s rally. The pair has been capped at the range top, 33.70, and is likely to test support at the $32.90 zone.

A break of this level would increase pressure towards the May 20 low, $32.15 ahead of the range bottom, at $31.74. Above $33.70, the next resistances are $34.15 and $34.60.XAG/USD 4-hour chart

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. 

.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/GBP trades flat around 0.8390 in Tuesday’s early European session. Optimism surrounding the EU-US trade deal could support the Euro in the near term. Stronger-than-expected UK CPI and Retail Sales have raised the prospect of a BoE rate cut delay. 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 rising hopes of a potential EU-US trade deal after US President Donald Trump delayed the imposition of 50% tariffs on Europe could lift the Euro (EUR) against the Pound Sterling (GBP) in the near term. Traders will closely monitor the progress of US trade policy as July 9 is the end of the 90-day pause on Trump's April 2 "Liberation Day" levies on the EU. Any signs of escalating trade tension could weigh on the shared currency.On the GBP’s front, traders push back Bank of England (BoE) rate cut bets after the release of the stronger-than-expected growth in the UK Consumer Price Index (CPI) and Retail Sales data for April. This, in turn, might boost the Pound Sterling and create a headwind for the cross. The possibility of a BoE rate cut in August was reduced to 40% by investors, down from 60% before the inflation data. However, interest rate futures pricing suggested investors saw about 37 basis points (bps) of BoE rate reductions by the end of 2025. 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.

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.

.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 Pound appreciates on risk appetite, bulls are testing the 194.25 resistance.The Japanese Yen eases with long-term bond yields retreating.The Japanese Ministry of Finance is considering reducing the bond selling program due to concerns about a debt crisis.
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. The JPY is losing ground against its main peers despite BoJ Governor Ueda’s comments highlighting the inflationary risks, which keep hopes of further monetary tightening alive.
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 New Zealand Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.04% -0.00% 0.23% -0.01% 0.12% 0.24% 0.03% EUR -0.04% -0.06% 0.16% -0.05% 0.00% 0.10% -0.03% GBP 0.00% 0.06% 0.23% 0.00% 0.04% 0.16% -0.02% JPY -0.23% -0.16% -0.23% -0.20% -0.09% -0.05% -0.18% CAD 0.01% 0.05% -0.00% 0.20% 0.11% 0.16% -0.04% AUD -0.12% -0.01% -0.04% 0.09% -0.11% 0.01% -0.13% NZD -0.24% -0.10% -0.16% 0.05% -0.16% -0.01% -0.20% CHF -0.03% 0.03% 0.02% 0.18% 0.04% 0.13% 0.20% 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).
Fears of a debt crisis in Japan are increasingGrowing concerns of a debt crisis in Japan are also weighing on the Yen. A recent report suggests that the Ministry of Finance is considering a reduction of super-long bonds issuance for the current fiscal year, as the declining demand from traditional buyers is triggering a significant increase on yields.

The yield of the 30-year note has dropped about 20 basis points over the Asian session to 2.86%. This could increase negative pressure on the Yen.

The UK calendar is light today, and market sentiment might keep the pair buoyed during the next sessions. Bulls are testing the 194.25 resistance area. If that level gives way, the May 13 high, at 196.25 will be exposed. Supports are at Monday’s 193.05 low and the 38.6% retracement level, at 191.75.GBP/JPY 4-hour chart

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.

FX option expiries for May 27 NY cut at 10:00 Eastern Time vi a DTCC can be found below.EUR/USD: EUR amounts1.1300 902m1.1380 1.1b1.1400 3.3bGBP/USD: GBP amounts1.3500 430mUSD/JPY: USD amounts                                 141.25 400m143.25 501mUSD/CHF: USD amounts     0.8200 530m0.8325 410mAUD/USD: AUD amounts0.6500 535m0.6510 1.5b0.6550 611mUSD/CAD: USD amounts       1.3900 861m

The US Dollar is showing marginal gains ahead of Tuesday’s European session opening.

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The Greenback lost 1.75% against the Canadian Dollar last week, with investors selling US assets afterMoody’s downgrade of the US debt rating and growing concerns about the impact of Trump’s sweeping tax bill on the US fiscal stability.US debt concerns are weighing on the DollarTrump’s tax-slashing bill, which will be discussed at the US Senate during the next weeks, is expected to boost US debt by $3.8 trillion in the next 10 years, as figures by the US Congressional Budget Office show.

The Canadian Dollar is a tad softer on Tuesday, with Oil prices retreating from last week’s highs. In the absence of relevant macroeconomic releases, the mild retreat in crude prices and market expectations that the BoC will cut rates again after next month’s meeting are likely to undermine speculative demand for the CAD.

Later today, investors will be attentive to the US Durable Goods Orders and the Conference Board’s Consumer Confidence data. These figures will provide further clues about the impact of Trump’s erratic trade policies on manufacturing and consumption. 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.

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.

.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 Tuesday, early in the European session. WTI trades at $61.11 per barrel, down from Monday’s close at $61.35.Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $63.96 after its previous daily close at $64.21. 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.

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.

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However, the potential upside for the pair might be limited amid the concerns over the mounting US national deficit. Traders await the US Conference Board’s Consumer Confidence report, which is due later on Tuesday. Also, Durable Goods Orders and the Dallas Fed Manufacturing Index will be published.   According to the daily chart, the bearish outlook of USD/CHF remains in play as the pair remains capped below the key 100-day Exponential Moving Average (EMA). The path of least resistance is to the downside, with the 14-day Relative Strength Index standing below the midline near 41.55. The first downside target for the cross emerges at 0.8150, the lower limit of the Bollinger Band. Extended losses could see a drop to 0.8067, the low of April 22. The next contention level for USD/CHF is seen at the 0.8000 psychological level. On the bright side, the immediate resistance level is located in the 0.8300-0.8305 zone, representing the round figure and high of May 22. Sustained trading above this level could attract some buyers to 0.8445, the upper boundary of the Bollinger Band. Further north, the next hurdle to watch is 0.8575, the 100-day EMA. 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.

 

USD/CHF daily chart

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.

.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 finds primary support at the lower boundary of the descending channel around 98.70.Technical analysis indicates a persistent bearish bias as the RSI stays below the 50 level.The nine-day EMA of 99.68 appears as the initial barrier, followed by the ascending channel’s upper boundary around 100.00.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.On the daily chart, technical analysis suggested a persistent bearish bias, with the index moving downwards within a descending channel pattern. Additionally, the DXY remains below the nine-day Exponential Moving Average (EMA), indicating that short-term momentum is weaker. Additionally, the 14-day Relative Strength Index (RSI) stays below the 50 level, indicating reinforcement of the bearish bias.On the downside, immediate support appears at the lower boundary of the descending channel around 98.70. A break below the channel would reinforce the bearish bias and put downward pressure on the US Dollar Index to navigate the area around 97.91 — the lowest level since March 2022, which was recorded on April 21.To the upside, the US Dollar Index may target the initial barrier at the nine-day EMA of 99.68, followed by the ascending channel’s upper boundary around 100.00. A break above this crucial resistance zone could cause the emergence of the bullish bias and support the DXY to test the 50-day EMA at the 101.20 level. A break above this level could strengthen the short-term price momentum and support the index to explore the area around the two-month high at 104.37, reached on April 1.US Dollar Index: Daily Chart US Dollar PRICE Today The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.11% 0.15% 0.16% 0.07% 0.39% 0.45% 0.13% EUR -0.11% 0.03% 0.07% -0.03% 0.21% 0.24% 0.00% GBP -0.15% -0.03% 0.04% -0.06% 0.16% 0.21% -0.06% JPY -0.16% -0.07% -0.04% -0.07% 0.23% 0.20% -0.03% CAD -0.07% 0.03% 0.06% 0.07% 0.30% 0.29% 0.00% AUD -0.39% -0.21% -0.16% -0.23% -0.30% -0.05% -0.32% NZD -0.45% -0.24% -0.21% -0.20% -0.29% 0.05% -0.31% CHF -0.13% -0.01% 0.06% 0.03% -0.00% 0.32% 0.31% 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 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.

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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. Spot prices, however, recover the early lost ground and currently trade just above mid-162.00s, nearly unchanged for the day.From a technical perspective, oscillators on hourly/daily charts have been struggling to gain positive traction. Moreover, the recent repeated failures near the 200-hour Simple Moving (SMA), currently pegged around the 162.75 region, warrant some caution for the EUR/JPY bulls. Hence, it will be prudent to wait for sustained strength beyond the said barrier before positioning for further gains.The subsequent move-up will suggest that the recent pullback from the 165.20 area, or the year-to-date high touched earlier this month has run its course and pave the way for further gains. The EUR/JPY cross might then climb further beyond the 163.00 mark and ascend further towards the 163.40-163.45 supply zone en route to the 164.00 round figure. On the flip side, the 162.00 round figure now seems to protect the immediate downside ahead of the 200-day SMA, around the 161.45 region. A convincing break below the latter might shift the near-term bias in favor of bearish traders and make the EUR/JPY cross vulnerable to retesting Friday's swing low, around the 161.00 round figure. Spot prices could eventually drop to the 160.00 psychological mark. EUR/JPY 1-hour chart 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 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.

.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 edges higher to around 1.1395 in Tuesday’s Asian session. The Euro hits its highest since late April after Trump delayed the imposition of 50% tariffs on European Union shipments.Concerns over the mounting US national deficit exert some selling pressure on the Greenback.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. The US Conference Board’s Consumer Confidence for May will be published later on Tuesday. Reuters reported on Sunday that Trump announced his decision to delay EU tariffs until July 9 after a call with European Commission President Ursula von der Leyen. The development offers some relief to markets and provides some support to the shared currency against the USD. “Following Trump's latest U-turn, we will, of course, have to wait and see what happens next. It is possible that a deal with the European Union will be reached by 9 July," said Commerzbank currency strategist Michael Pfister.Trump’s dubbed “Big, Beautiful Bill,” which is calculated to add about $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade. This fuels concerns over the mounting US national deficit and continues to undermine sentiment towards US assets, including the USD. Traders will closely monitor the progress of US trade policy, as July 9 is the end of the 90-day pause on Trump's April 2 "Liberation Day" levies on the EU. Any signs of escalating trade tension could weigh on the Euro against the USD.  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.

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

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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.)

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.

.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 traders seem non-committed amid a combination of diverging forces.The latest optimism around EU’s tariff delay undermines the safe-haven commodity and caps the upside.US fiscal concerns, geopolitics, Fed rate cut bets and a weaker USD lend support to XAU/USD.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. Investors cheered US President Donald Trump's decision to delay imposing tariffs on the European Union (EU), which, in turn, is seen acting as a headwind for the safe-haven commodity. However, the uncertainty around Trump's trade policies keeps a lid on the optimism, which, along with a broadly weaker US Dollar (USD), lends support to the precious metal. Investors remain worried that Trump's sweeping tax cuts and spending bill would worsen the US budget deficit. Furthermore, expectations that the Federal Reserve (Fed) will lower borrowing costs further in 2025 keep the USD depressed near its lowest level since April 22 and underpins the non-yielding Gold price. Apart from this, escalating geopolitical tensions on the back of the protracted Russia-Ukraine war and conflicts in the Middle East help limit the downside for the XAU/USD pair, warranting caution for bearish traders.Daily Digest Market Movers: Gold price bulls seem reluctant to add to positions amid receding safe-haven driversUS President Donald Trump agreed on Sunday to postpone the proposed 50% tariffs on the European Union from June 1 until July 9. The announcement followed a call with EU President Ursula von der Leyen, who said that the bloc was ready to move quickly in trade talks with the US but needed more time to strike a deal. The development offered some relief to markets, though investors remain on edge amid the uncertainty surrounding Trump's trade policies and deep-rooted tensions between the US and China – the world's two largest economies. Apart from this, US fiscal concerns and geopolitical risks lend some support to the Gold price. Trump’s dubbed “Big, Beautiful Bill”, which would add an estimated $4 trillion to the federal primary deficit over the next decade, was passed in the lower house last week and will be voted on in the Senate this week. This fuels worries that the US budget deficit could worsen at a faster pace than previously expected. Meanwhile, signs of easing inflationary pressure in the US lifted market bets that the Federal Reserve will eventually step in to support economic growth. In fact, traders are pricing in the possibility of at least two 25 basis point Fed rate cuts by the year-end, which keeps the US Dollar depressed near the monthly low.Russia launched the largest aerial assault since its full-scale invasion of Ukraine in February 2022. In response, Trump said that he was considering new sanctions against Russia and called Russian President Vladimir Putin crazy. Moreover, the continuous Israeli strikes on Gaza keep the geopolitical risk in play. Traders now look forward to Tuesday's US macro releases– Durable Goods Orders and the Conference Board's Consumer Confidence Index. The focus, however, will be on FOMC minutes, due on Wednesday, which might offer some cues about the Fed's rate-cut path and provide some impetus to the USD. This week's US economic docket also features the release of the Prelim Q1 GDP and the Personal Consumption Expenditure (PCE) Price Index on Thursday and Friday, respectively. This, in turn, should infuse some volatility around the XAU/USD pair and allow traders to grab meaningful opportunities. Gold price flirts with ascending trend-line; 100-period SMA on H4 holds the key for bullsFrom a technical perspective, the commodity currently flirts with short-term ascending trend-line support. Some follow-through selling and a subsequent break below the overnight swing low, around the $3,324-3,323 region, could drag the Gold price to the $3,300 round figure. The latter nears the 100-period Simple Moving Average (SMA) on the 4-hour chart, which if broken decisively should pave the way for deeper losses. On the flip side, Friday's swing high, around the $3,366 area, now seems to act as an immediate barrier. A sustained strength beyond will be seen as a fresh trigger for bulls and allow the Gold price to reclaim the $3,400 mark. The next relevant hurdle is seen near the $3,430 region, above which the XAU/USD could surpass an intermediate resistance around the $3,465-3,470 zone and challenge the all-time peak, around the $3,500 psychological mark touched in April. 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.

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.

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The grey metal attracts sellers due to diminished safe-haven demand amid the easing trade tension between the United States (US) and the European Union (EU) improves the traders’ risk appetite.Following Friday’s threat by Trump to impose a 50% tariff on imports from the European Union, the US President decided to extend the tariff deadline on the European Union (EU) after having a phone call with European Commission President Ursula von der Leyen on Sunday. On Monday, the EU agreed to accelerate negotiations with the United States (US) to avoid a transatlantic trade war.However, the safe-haven Silver may regain its ground amid growing concerns over US debt issues ahead of Trump's “One Big Beautiful Bill” going through the Senate floor for Voting. The Bill is expected to raise the deficit by $3.8 billion, according to the Congressional Budget Office (CBO).The Bill’s provisions, including tax cuts, spending increases, and raising the debt ceiling, could worsen US government finances and increase the risk of bond yields staying higher for longer. Higher bond yields can keep borrowing costs higher for consumers, businesses, and governments.However, the long-term US yields continue to decline for the third successive session, with 10- and 30-year yields on US Treasury bonds standing at 4.48% and 5.0%, respectively, at the time of writing. The lower yields could drive the investors toward precious metals, including Silver, seeking better returns amid the reduced opportunity cost.The weaker US Dollar (USD) could also support the Silver demand as dollar-denominated metal becomes cheaper for foreign buyers. Investors would likely await the release of the latest FOMC Minutes on Wednesday, followed by the PCE inflation data on Friday, seeking fresh impetus into the Federal Reserve’s (Fed) interest rate outlook. 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 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.

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A broader gain in the Asian currencies on account of a weak US Dollar (USD) could provide some support to the Indian currency. Additionally, a decline in crude oil prices might contribute to the INR’s upside. It’s worth noting that India is the world's third-largest oil consumer, and lower crude oil prices tend to have a positive impact on the INR value.Nonetheless, expectations of lower interest rates by the Reserve Bank of India (RBI) might weigh on the local currency. Traders brace for the US Conference Board’s Consumer Confidence report, which is due later on Tuesday. Also, Durable Goods Orders and the Dallas Fed Manufacturing Index will be released. The Minutes of the Federal Open Market Committee (FOMC) will be the highlight later on Wednesday. Indian Rupee holds steady amid weakening of the US Dollar"It's a very EM positive environment, and I don't see any reason why that will stop in the near term," said Brad Bechtel, global head of foreign exchange at Jefferies. Bechtel emphasized that the US Dollar (USD) could face steeper losses if China allows the Yuan to start moving substantially higher.The Monetary Policy Committee (MPC) of the RBI is likely to cut the repo rate by 25 basis points (bps) at the June meeting, according to  Moneycontrol’s poll of economists and bank treasury heads.NITI Aayog Chief Executive Officer (CEO) BVR Subrahmanyam said that India has surpassed Japan to become the world’s fourth-largest economy, citing data from the International Monetary Fund (IMF). According to the CME FedWatch tool, the chances of an interest rate cut by the Federal Reserve (Fed) in June’s meeting are only at a low of 5.6%.  USD/INR retains the negative bias in the longer termThe Indian Rupee trades on a flat note on the day. The bearish outlook of the USD/INR pair remains in place as the price is below the key 100-day Exponential Moving Average (EMA) on the daily chart. Furthermore, downward momentum is reinforced by the 14-day Relative Strength Index (RSI), which stands below the midline near 45.00.  This suggests that further downside looks favorable in the near term. The first support level for USD/INR is located at 84.78, the low of May 26. Any follow-through selling below this level could set off a drop to 84.61, the low of May 12. The additional downside filter to watch is 84.05, the lower limit of the trend channel.In the bullish case, the 100-day EMA at 85.55 acts as an immediate resistance level for the pair. Sustained trading above the mentioned level possibly lifts USD/INR up to 85.75, the upper boundary of the trend channel. Further north, the next hurdle is seen at 85.10, 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.


 

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.

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The pair is hovering near the 39-month high of 1.3593, which was marked on Monday. The pair continues to appreciate as the US Dollar (USD) weakens due to growing fears over the United States' (US) debt concerns.The Greenback faces challenges as the easing trade tension between the United States (US) and the European Union (EU) improves the traders’ risk appetite. US President Donald Trump extended the tariff deadline on the European Union (EU) from June 1 to July 9 after having a phone call with European Commission President Ursula von der Leyen on Sunday. On Friday, Trump threatened to impose a 50% tariff on imports from the European Union (EU).Additionally, the US Dollar attracts sellers as the United States (US) faces concerns over fiscal deficit ahead of Trump's “One Big Beautiful Bill” going through the Senate floor. The 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).Trump’s Bill includes provisions like tax cuts, spending increases, along raising the debt ceiling. This could worsen the US government's finances and increase the risk of bond yields staying higher for longer. Higher bond yields can keep borrowing costs higher for consumers, businesses, and governments.Moreover, the Pound Sterling (GBP) rises as traders reassess the Bank of England’s (BoE) monetary policy outlook after the release of the hotter-than-expected inflation and retail sales data for April, released last week. Reuters reported that the futures market indicates UK rates to fall by around 38 basis points (bps) in 2025, which would suggest one 25 bps interest rate cut and a roughly 50/50 chance of a second cut. 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.

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.

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Dovish Fed expectations undermine the USD and exert pressure on USD/JPY.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. This marks a sharp divergence in comparison to expectations that the Federal Reserve (Fed) will cut interest rates further this year and turns out to be a key factor that provides a goodish lift to the JPY. Apart from this, persistent geopolitical risks stemming from the protracted Russia-Ukraine war and conflicts in the Middle East further benefit the JPY's relative safe-haven status. The US Dollar (USD), on the other hand, remains depressed near its lowest level since April 22 amid concerns about the worsening US fiscal situation. This contributes to the USD/JPY pair's slide to the 142.00 neighborhood, or over a one-month low, and supports prospects for further losses. Japanese Yen gets a strong lift as stronger domestic inflation data reaffirms BoJ rate hike betsThe Bank of Japan reported earlier this Tuesday that the Services Producer Price Index (PPI) – a leading indicator of Japan's service-sector inflation – rose 3.1% from a year earlier in April. This comes on top of last week's strong consumer inflation figures and keeps alive expectations of further interest rate hikes by the Bank of Japan.Moreover, BoJ Governor Kazuo Ueda showed readiness to continue raising rates and said that the central bank must be vigilant to the risk rising food prices could push up underlying inflation that is already near its 2% target. This provides a goodish lift to the Japanese Yen and drags the USD/JPY pair to over a one-month trough. Japan's Finance Minister Katsunobu Kato said that interest rates reflect various factors, but the market sees rising rates as reflecting concerns about state finances. Kato added that the government will closely monitor the bond market situation amid rising super-long bond yields and will continue close dialogue with bond investors.US President Donald Trump announced an extension of the deadline for imposing 50% tariffs on European Union imports to July 9, lifting the global risk sentiment. However, the uncertainty around Trump’s trade policies remains, which keeps investors on edge and turns out to be another factor benefiting the JPY's safe-haven status. Trump called Russian President Vladimir Putin ‘crazy’ and said that he was considering new sanctions against Russia after the biggest drone attack on Ukraine in the more than three-year-old war. Furthermore, Israel continues to pound Gaza, keeping geopolitical risks in play and further underpinning demand for the JPY. The US Dollar, on the other hand, struggles to attract any buyers and languishes near the monthly trough amid worries that Trump's sweeping tax cuts and spending bill would worsen the US budget deficit. This, along with dovish Federal Reserve expectations, exerts additional pressure on the buck and the USD/JPY pair.Traders now look forward to the US economic docket – featuring the release of Durable Goods Orders and the Conference Board's Consumer Confidence Index. The focus, however, will remain glued to the FOMC minutes, the Prelim US Q1 GDP print, and the US Personal Consumption Expenditure (PCE) Price Index. Investors this week will also confront the release of Tokyo CPI on Friday, which will play a key role in influencing the JPY price dynamics. Nevertheless, the fundamental backdrop seems tilted in favor of the JPY bulls and suggests that the path of least resistance for the USD/JPY pair remains to the downside.USD/JPY bears now await a break below the 142.00 mark before positioning for further declineFrom a technical perspective, the previous day's failure ahead of the 61.8% Fibonacci retracement level of the April-May rally and the subsequent slide favors the USD/JPY bears. Moreover, oscillators on the daily chart are holding in negative territory and are still far away from being in the oversold zone. This, in turn, supports prospects for a further near-term depreciating move for the currency pair. Some follow-through selling below the 142.00 mark will reaffirm the outlook and drag spot prices below the 141.55 intermediate support, towards the 141.00 round figure. The downward trajectory could extend further towards the year-to-date low, or levels below the 140.00 psychological mark touched on April 22.On the flip side, any attempted recovery might now face stiff resistance near the 143.00 round figure. This is closely followed by the 143.25 area, or the 61.8% Fibo. retracement level, which if cleared decisively could trigger a fresh bout of a short-covering and lift the USD/JPY pair to the 143.65 region en route to the 144.00 mark. A sustained strength beyond the latter could pave the way for further recovery, though the move up might still be seen as a selling opportunity near the 144.80 zone and remain capped near the 145.00 psychological mark. Bank of Japan FAQs What is the Bank of Japan? The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. What has been the Bank of Japan’s policy? The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance. How do Bank of Japan’s decisions influence the Japanese Yen? The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when the BoJ decided to abandon its ultra-loose policy stance. Why did the Bank of Japan decide to start unwinding its ultra-loose policy? A weaker Yen and the spike in global energy prices led to an increase in Japanese inflation, which exceeded the BoJ’s 2% target. The prospect of rising salaries in the country – a key element fuelling inflation – also contributed to the move.

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.

.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}}The Australian Dollar holds its position near a psychological 0.6500 level after pulling back from a six-month high of 0.6537.The AUD faces few challenges due to a dovish sentiment surrounding the RBA’s policy outlook.The US Dollar struggles over fiscal deficit concerns as Trump's tax bill is set to be voted on in the Senate.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. However, the continued decline in the US Dollar provides support for the pair, which could be attributed to growing fears over the United States' (US) debt concerns.The AUD/USD pair could regain its ground as the Greenback faces additional challenges amid improving risk-on sentiment, driven by the easing trade tension between the United States (US) and the European Union (EU). US President Donald Trump extended the tariff deadline on the European Union (EU) from June 1 to July 9 after having a phone call with European Commission President Ursula von der Leyen on Sunday. On Friday, Trump threatened to impose a 50% tariff on imports from the European Union (EU).The Reserve Bank of Australia (RBA) is expected to deliver further interest rate cuts in the upcoming policy meetings, which could put a limit on the Australian Dollar’s upside. The Australian central bank delivered a 25 basis point interest rate cut in the previous week. Moreover, Governor Michele Bullock stated that the central bank is prepared to take additional action if the economic outlook deteriorates sharply, raising the prospect of future rate cuts.The AUD received support from the 90-day US-China trade truce, along with expectations of further US trade deals with other countries. Markets would closely monitor further developments on US-China trade negotiations, as China is a major trading partner of Australia.Australian Dollar remains subdued despite a weaker US Dollar amid rising debt concernsThe US Dollar Index (DXY), which measures the value of the Greenback against six major currencies, is continuing to lose ground for the third successive session on Tuesday. The DXY is trading around 98.80 at the time of writing. Traders will likely observe the Durable Goods Orders, the Dallas Fed Manufacturing Index, and the Conference Board’s Consumer Confidence report due later in the North American session.The US fiscal deficit could increase further when Trump's “One Big Beautiful Bill” goes through the Senate floor, 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.”While speaking in Japan on Monday, Minneapolis Fed President Neel Kashkari noted that “uncertainty is top of the mind for Fed, US businesses.” Kashkari said that extended tariffs increase the risk of stagflation, questioning the scale of stagflation. He expressed doubts that the picture would be clear enough by September.Chicago Federal Reserve (Fed) President Austan Goolsbee said on Friday that Trump’s latest tariff threats likely postpone changes to interest rates. Meanwhile, Kansas City Fed President Jeffrey Schmid noted that policymakers will gauge hard data before formulating interest rate decisions, and the Fed needs to be careful how much emphasis it puts on soft data.Fed Governor Christopher Waller noted on Thursday that markets are monitoring fiscal policy. Waller further stated that if tariffs are close to 10%, the economy would be in good shape for H2, and the Fed could be in a position to cut later in the year.The US Dollar continues to struggle after 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.China’s Commerce Ministry said last week that US measures on China’s advanced chips are ‘typical of unilateral bullying and protectionism’ and impede the stability of the global semiconductor industry chain and supply chain. Chinese authorities asked the United States to swiftly correct its wrong practices.Traders will keep an eye on Australia-China relations as China’s ambassador has criticised Australia’s plan to renege Darwin Port lease. The port was leased to the Chinese company Landbridge in 2015 for 99 years. The Chinese embassy called this decision an unfair and unethical move, per Reuters.Australian Dollar remains below 0.6500 after retreating from six-month highsThe AUD/USD pair is trading around 0.6490 on Tuesday, with daily technical indicators suggesting a persistent bullish bias as the pair remains above the nine-day Exponential Moving Average (EMA). Moreover, the 14-day Relative Strength Index (RSI) is maintaining its position above the 50 mark, supporting an upward outlook.The AUD/USD pair could test a six-month high at 0.6537. A successful break above this level could reinforce the bullish bias and lead the pair to approach the seven-month high at 0.6687, recorded in November 2024.On the downside, the nine-day EMA of 0.6456 would act as an immediate support, followed by the 50-day EMA near 0.6380. The decisive break below these levels would weaken the short- and medium-term price momentum and open the doors for the pair to navigate the region around 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 -0.14% -0.13% -0.44% -0.07% -0.01% 0.03% -0.18% EUR 0.14% -0.01% -0.31% 0.08% 0.05% 0.08% -0.06% GBP 0.13% 0.00% -0.27% 0.08% 0.06% 0.08% -0.10% JPY 0.44% 0.31% 0.27% 0.40% 0.44% 0.40% 0.27% CAD 0.07% -0.08% -0.08% -0.40% 0.03% 0.00% -0.17% AUD 0.01% -0.05% -0.06% -0.44% -0.03% -0.06% -0.23% NZD -0.03% -0.08% -0.08% -0.40% -0.01% 0.06% -0.21% CHF 0.18% 0.06% 0.10% -0.27% 0.17% 0.23% 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 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). 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.

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.

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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 Reserve Bank of New Zealand (RBNZ) interset rate decision will be in the spotlight on Wednesday. Despite US President Donald Trump delaying the imposition of tariffs on Europe, investors remain concerned over the mounting US national deficit. This, in turn, continues to undermine sentiment towards US assets and drag the USD lower broadly. The attention will shift to the debate in the US Senate on Trump's tax-cut bill that is expected to add to the debt pile in the world's largest economy. Investors await the US Conference Board’s Consumer Confidence report, which is due later on Tuesday. Also, Durable Goods Orders and the Dallas Fed Manufacturing Index will be released.The RBNZ is expected to lower the Official Cash Rate (OCR) by 25 basis points (bps) to 3.25% at its May meeting on Wednesday, according to Bloomberg. The New Zealand central bank is open to further easing as US trade barriers dim the economic outlook, which might weigh on the Kiwi. “We see the RBNZ’s OCR profile being revised down by around 20 basis points to around 2.9% by the end of 2025,” said Kelly Eckhold, chief economist at Westpac in Auckland.  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.

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.

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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.

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Will closely monitor the bond market situation, including the super long sector.
Will continue close dialogue with bond investors and market participants.
Not aware of any details about the Softbank CEO's idea of creating a joint Japan-US sovereign wealth fund.Market reactionAt the time of writing, the USD/JPY pair is trading 0.36% lower on the day to trade at 142.30. 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.

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.

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In Japan, we are still grappling with the longstanding challenge of achieving our 2% inflation target in a sustainable manner.
While we are now closer to our inflation target than at any time during the last few decades, we are not quite there.
Inflation in Japan has picked up again, driven primarily by increases in food prices, most notably rice prices.
Japan’s real policy rate remains deeply negative.
In light of growing uncertainties, particularly those related to trade policy, we have recently revised down our economic and inflation outlook.
But we continue to expect underlying inflation to gradually move toward 2% over the second half of our forecast horizon.
There are both upside, downside risks around our baseline scenario.
Risks to economic activity, prices are skewed to downside for fiscal 2025 and 2026.
To the extent incoming data allows us to gain more confidence in our baseline scenario, as economic activity and prices improve, we will adjust degree of monetary easing as needed to ensure achievement of sustainable 2% inflation target.
Considering extremely high uncertainties, it is important for us to judge whether the outlook will be realised, without any preconceptions.Market reaction  At the time of writing, the USD/JPY pair is trading 0.32% lower on the day at 142.38.  Bank of Japan FAQs What is the Bank of Japan? The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%. What has been the Bank of Japan’s policy? The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance. How do Bank of Japan’s decisions influence the Japanese Yen? The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when the BoJ decided to abandon its ultra-loose policy stance. Why did the Bank of Japan decide to start unwinding its ultra-loose policy? A weaker Yen and the spike in global energy prices led to an increase in Japanese inflation, which exceeded the BoJ’s 2% target. The prospect of rising salaries in the country – a key element fuelling inflation – also contributed to the move.

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. 

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The WTI price holds steady as traders awaits clarity on OPEC+ next move on May 31. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) will decide July oil production levels for eight key members by one day, to May 31, earlier than previously planned. The sources previously told Reuters that will entail another 411,000 barrels per day of production for a third consecutive month. Russian Prime Minister Alexander Novak said that OPEC+ has not yet discussed increasing output by another 411,000 barrels per day ahead of its meeting. Meanwhile, US President Donald Trump expressed hope for progress in nuclear talks with Iran after a meeting in Rome last week. Iranian Foreign Minister Abbas Araghchi said on Friday that the negotiations are too complicated to be resolved in two or three meetings and there was potential for progress in nuclear negotiations after Oman made several proposals. However, Trump said American negotiators made “real progress” during “very good” nuclear talks with Iran over the weekend. This, in turn, might cap the upside for the WTI price in the near term. On the other hand, Trump announced an extension on the 50% tariff deadline on the European Union (EU) until July 9 after a phone call with Commission President Ursula von der Leyen. These positive developments provide some support to the black gold.  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.

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.

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The US Dollar weakens against the Canadian Dollar (CAD) as investors turn away from US assets. Traders will keep an eye on the Conference Board’s Consumer Confidence report due later on Tuesday, followed by Durable Goods Orders and the Dallas Fed Manufacturing Index."The 'Sell America' theme is growing among investors after Moody's downgraded the creditworthiness of the US due to the mounting US national deficit. The downgrade, the budget bill, and the ongoing economic uncertainty triggered by US President Donald Trump's tariffs weigh on the USD broadly. "The 'Sell America' theme, which obviously was the dominant theme back in April, is back on show," said Ray Attrill, head of FX research at National Australia Bank.Despite the upbeat Canadian Retail Sales in March, expectations for a rate cut from the Bank of Canada (BoC) in June have remained unchanged. Currency swap markets have priced in a 32% odds of a 25 basis points (bps) rate reduction by the BoC in the June meeting, according to Bloomberg.Meanwhile, a decline in Crude Oil prices could weigh on 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.

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.

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In the meantime, as Tuesday’s Asian session begins, the cross-pair trades at 85.57, down 0.13% at the time of writing.NZD/JPY Price Forecast: Technical outlookThe NZD/JPY trades sideways from a technical perspective, even though the Ichimoku Cloud (Kumo) analysis shows the pair is also tilted to the upside. This is because price action is above the Kumo, though capped on the upside by the Tenkan-sen at 85.67.Momentum suggests that neither buyers nor sellers are in charge, with the Relative Strength Index (RSI) remaining at the 50-neutral line.For a bullish scenario, the NZD/JPY needs to clear the Tenkan-sen and the 86.00 figure so buyers could challenge the latest cycle high of the May 13 high at 87.73. A decisive break will expose the year-to-date (YTD) peak at 89.71.Conversely, for a bearish scenario to unfold, the NZD/JPY must clear the May 22 low of 84.61. If surpassed, the next support would be the top of the Kumo at around 83.50-83.75.NZD/JPY Price Chart – Daily New Zealand Dollar FAQs What key factors drive the New Zealand Dollar? The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD. How do decisions of the RBNZ impact the New Zealand Dollar? The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair. How does economic data influence the value of the New Zealand Dollar? Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar’s (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate. How does broader risk sentiment impact the New Zealand Dollar? The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called ‘commodity currencies’ such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.

South Korea Consumer Sentiment Index rose from previous 93.8 to 101.8 in May

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