USD/JPY has rebounded after defending its May low of 142.10, with daily MACD momentum turning positive and suggesting a recovery phase. The pair may now test the critical resistance zone at 148/148.65, while 144.20 serves as nearby support, Société Générale's FX analysts note.
The path of least resistance for the S&P 500 remains to the upside but traders look forward to the US CPI report as it could trigger some big moves in the market
Momentum indicators are still mostly flat; Pound Sterling (GBP) is likely to trade in a sideways range of 1.3570/1.3635 against US Dollar (USD). In the longer run, the likelihood of GBP dropping to 1.3510 is increasing, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Trump’s letters to trading partners are so far primarily affecting local markets, rather than the broader market. Yesterday’s surprise 50% tariff announcement on Brazil has triggered a major BRL selloff.
EUR/JPY edges higher after registering losses in the previous session, trading around 171.60 during the European hours on Thursday. The bullish bias is strengthening as the technical analysis of the daily chart shows that the currency cross moves upwards within the ascending channel pattern.
Euro (EUR) could edge higher against US Dollar (USD); any advance is likely part of a higher range of 1.1700/1.1755. In the longer run, no change in view; there is still a chance (albeit a limited one) for EUR to pull back to 1.1660, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
EUR/USD 1-week historical volatility is back below 7.0, confirming markets' extra caution in dealing with Trump’s tariff announcements. By comparison, this peaked at 20 in April, and was above 9.0 only a couple of weeks ago, ING's FX analyst Francesco Pesole notes.
The NZD/USD pair attracts some buyers near 0.6010 during the early European session on Thursday, bolstered by a softer US Dollar (USD). The US weekly Initial Jobless Claims will be in the spotlight later on Thursday.
The GBP/JPY cross attracts some dip-buyers near the 198.40-198.35 region during the Asian session on Thursday and stalls a modest corrective pullback from a one-year high touched the previous day.
Silver price registered losses of over 1% on Wednesday after the US Federal Reserve (Fed) unveiled its June meeting minutes, hinting that policymakers are eyeing just one interest rate cut, instead of the two priced in by investors. Although the Greenback was unchanged, the grey metal tumbled.
The EUR/USD finished Wednesday’s session with decent gains of over 0.17% after the Federal Open Market Committee (FOMC) released its June monetary policy meeting minutes, which showed that some officials are eyeing at least one interest rate cut.
Gold price registers decent gains on Wednesday as US Treasury yields recede, even though the Greenback trades solidly against its peers. Trade developments continued to dictate the market’s direction, while the latest minutes indicate that officials are still considering a rate cut in 2025.
The Australian Dollar (AUD) is trading in a well-defined range against its US Dollar (USD) counterpart on Wednesday, as markets digest the latest Fed Minutes and fresh tariff-related headlines.
The British Pound (GBP) eases slightly against the Japanese Yen (JPY) on Wednesday, retreating after rising to 199.83 — its highest level since late July 2024.
The EUR/GBP tumbles during the North American session, down by a 0.18% as risk appetite improved due to most US equity indices registering gains as traders brace for the release of the latest Federal Reserve monetary policy meeting minutes. At the time of writing, the cross trades at 0.8622.
The Euro (EUR) is slipping against the Japanese Yen (JPY), easing from its recent year-to-date high of 172.28 reached on Wednesday amid fresh concerns over potential US tariffs targeting Japan.
Silver (XAG/USD) is trading near $36.40 on Wednesday, marking its third consecutive daily decline, as a stronger US Dollar and rising US Treasury yields continue to pressure precious metals.
The RBNZ kept rates unchanged. The US treasury will auction 10 year notes and wholesale inventories are on the schedule today. US tariff news remains to be awaited.
The Pound Sterling (GBP) is entering Wednesday’s NA session unchanged vs. the US Dollar (USD), with limited overnight movement reflecting the absence of any major data releases, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
The US Dollar (USD) maintains a firm footing on Wednesday, though momentum has eased slightly after a stronger start to the day. The Greenback opened with a mildly bullish tone amid lingering tariff tensions and cautious market sentiment.
The Canadian Dollar (CAD) remains pinned back to near its recent lows against the US Dollar (USD) in the upper 1.36s, where the USD has camped out for most of the week so far, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
There is a chance for US Dollar (USD) to rise above 7.1900 against Chinese Yuan (CNH), but it might not be able to maintain a foothold above this level.
Gold (XAU/USD) is extending its decline on Wednesday for a second consecutive day as the US Dollar (USD) and US Treasury yields firm ahead of the release of the Federal Open Market Committee (FOMC) Meeting Minutes.
There is another reason why the USD is struggling to gain ground against the euro: the interest rate differential. The market is now pricing in just under two interest rate cuts by the Fed by the end of the year, but only one by the ECB.
Slight increase in momentum indicates New Zealand Dollar (NZD) is likely to edge lower against US Dollar (USD); any decline is unlikely to reach the major support at 0.5950.
There's the danger that the US government's imposition of sanctions via the US Dollar (USD) as the world's leading currency could cast doubt on its status if the countries that use the USD as an international transaction medium no longer support such US sanctions. But is the USD really at risk?
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