Another 25bp rate cut by the Reserve Bank of New Zealand on 28 May seems likely. Markets are fully pricing it in, following the RBNZ’s previous indications that growth remains a major concern, ING's FX analysts Francesco Pesole and Chris Turner note.
US Dollar (USD) is likely to trade sideways between 7.1850 and 7.2100. In the longer run, renewed downward momentum suggests 7.1700 is back in sight, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD and the Australian dollar are the biggest beneficiaries in G10 from a de-escalation in US-China trade tensions, ING's FX analysts Francesco Pesole and Chris Turner note.
US Dollar (USD) is likely to trade in a range between 146.70 and 148.20. In the longer run, further USD strength is likely, but it could first trade in a range for a few days; the level to monitor is 149.30, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/CAD observed volatility has eased back significantly, as the loonie seems to be trading again as an extension of US-growth sentiment – and is therefore more correlated with USD, ING's FX analysts Francesco Pesole and Chris Turner note.
New Zealand Dollar (NZD) is likely to rise further; it is unlikely to be able to break clearly above 0.5965. In the longer run, outlook is mixed; NZD is expected to trade in a 0.5835/0.6030 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Pound Sterling (GBP) is holding up quite well as UK Prime Minister Keir Starmer delivers some wins on trade and geopolitics, ING's FX analysts Francesco Pesole and Chris Turner note.
Scope for further Australian Dollar (AUD) strength against the US Dollar (USD), but any advance is likely part of a higher range of 0.6420/0.6515. In the longer run, to continue to rise, AUD must break and hold above 0.6515, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Japanese Yen (JPY) was one of the prime beneficiaries of the ‘sell America’ theme that we briefly saw in April, ING's FX analysts Francesco Pesole and Chris Turner note.
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against a basket of six major currencies, is losing ground for the second successive session, trading near 100.50 during the European hours on Wednesday.
Pound Sterling (GBP) could continue to rebound against US Dollar (USD), but any advance is likely limited to a test of 1.3340. In the longer run, buildup in momentum has faded; GBP is likely to trade in a 1.3140/1.3405 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
West Texas Intermediate (WTI) US Crude Oil prices remain depressed through the early European session on Wednesday and for now, seem to have snapped a four-day winning streak to mid-$63.00s, or over a two-week high touched the previous day.
The NZD/USD pair holds gains after registering approximately 1.50% gains in the previous session, trading around 0.5940 during the European hours on Wednesday. The technical analysis of the daily chart indicates a neutral stance, as the pair continues to consolidate within a rectangular range.
The EUR/JPY cross attracts some sellers to around 164.40 during the early European session on Wednesday. The Japanese Yen (JPY) strengthens against the Euro (EUR) amid the prospects for further policy normalization by the Bank of Japan (BoJ).
Silver (XAG/USD) extends the previous day's retracement slide from the $33.20-$33.25 resistance zone and attracts some follow-through selling during the Asian session on Wednesday.
Silver price edged up 0.95% on Tuesday as the Greenback finished the session below the 101.00 figure, according to the US Dollar Index (DXY), which tracks the performance of the buck’s value against a basket of six currencies.
NZD/USD trades around the 0.5900 level during the North American session on Tuesday, benefiting from a softer US Dollar (USD) and improving risk sentiment. US President Donald Trump dominated headlines, reiterating his aggressive stance on trade and investment policies.
The NZD/JPY pair has seen a strong upside push, trading near the 87.50 zone with around 0.80% gains ahead of the Asian session on Tuesday. The pair is positioned mid-range within its recent fluctuation, reflecting a steady bullish tone as traders assess broader risk sentiment.
AUD/JPY extended its upward momentum on Tuesday, rising to 96.60 at the time of writing, as renewed risk appetite and stronger Australian data continue to fuel gains in the pair.
Gold prices traded with a positive tone on Tuesday, following Monday’s drop of over 2.70%, exchanged hands at around $3,250, up by 0.42%. A softer-than-expected US inflation report and the trade truce between China and the US may keep Gold prices capped beneath the $3,300 figure.
The Australian Dollar (AUD) is trading sharply higher against the US Dollar (USD) on Tuesday, with AUD/USD rising to 0.6470, up nearly 1.5% intraday, as a combination of improved global sentiment and softer US Consumer Price Index (CPI) data boosts demand for risk-sensitive currencies.
The EUR/CAD pair advanced on Tuesday, trading near the 1.5600 zone after the European session, reflecting a strong bullish tone as the market heads into the Asian session.
The EUR/USD pair advanced on Tuesday, trading near the 1.1200 zone after the European session, reflecting a strong bullish tone as the market approaches the Asian session. Price action remains near the top of the daily range, suggesting that buyers maintain control despite mixed momentum readings.
The Pound Sterling (GBP) recovered from Monday's losses and climbed over 0.35% against the US Dollar (USD) after the latest inflation report in the United States (US) kept traders' hopes high for further easing by the Federal Reserve (Fed).
The fall below the 38.2% of the move up from the April low at 1.31603 failed yesterday. Price based against retraceement evel before moving higher today
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