USD/JPY pulls back after registering more than 2% gains in the previous session, trading around 147.90 during the Asian hours on Tuesday. The pair depreciates as the Japanese Yen (JPY) gains ground despite a persistent uncertainty over the Bank of Japan’s (BoJ) interest rate outlook.
Japanese Finance Minister Katsunobu Kato said on Tuesday that “if have a chance, hope to have a meeting with US Treasury Secretary Scott Bessent to discuss forex.”
On Tuesday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1991 as compared to Monday's fix of 7.2066 and 7.2180 Reuters estimate.
The Gold price (XAU/USD) edges lower to around $3,235 during the early Asian session on Tuesday. The precious metal remains on the defensive due to a stronger US Dollar (USD), higher US yields, and optimism on the US-China trade deal.
US Trade Representative Jamieson Greer said late Monday that China has agreed to remove countermeasures. However, if things don’t work out, China tariffs can go back up.
The NZD/USD pair trades in positive territory around 0.5865 during the Asian session on Tuesday. The New Zealand Dollar (NZD) strengthens against the Greenback after the US and China announced a trade deal, easing fears of a trade war between the world’s two largest economies.
The Bank of Japan (BoJ) published the Summary of Opinions from the monetary policy meeting on April 30 and May 1, 2025, with the key findings noted below.
EUR/USD took a hard step lower on Monday, kicking off the new trading week with a fresh dip below 1.1000 before a late recovery pushed the pair back toward 1.1100.
British Retail Consortium reported a 7.0% year-on-year rise in total retail sales, up from 1.1% in March — the strongest annual gain for any month since the pandemic.
GBP/USD fell on Monday, tumbling a little over one percent and pushing the pair back down below the 1.3200 handle after a broad-based recovery in Greenback bidding.
Silver price ended Monday’s session with losses of over 0.40% as upbeat news from last weekend's meetings between US and Chinese delegations delivered an agreement to reduce tariffs for 90 days, marking the beginning of negotiations.
The AUD/NZD pair edged higher on Monday, trading near the 1.0900 zone after the European session, reflecting a steady bullish tone as the market heads into the Asian session.
The USD/JPY pair is trading near 148.00, up approximately 2% on the day, as risk-on sentiment dominates global markets following a significant breakthrough in US-China trade relations.
On May 15, Banco de México, also known as Banxico, is expected to reduce interest rates to 8.5%, according to a Reuters poll on Monday, despite high inflation levels near the top of the central bank’s range.
The EUR/JPY pair advanced on Monday, trading near the 165.00 zone after the European session, reflecting a strong bullish tone as the market heads into the Asian session.
The Mexican Peso (MXN) is on the defensive against the US Dollar (USD) after developments over the weekend boosted the Greenback. A de-escalation of the US-China trade war, alongside expectations of a “large-sized” interest rate cut by the Banco de Mexico (Banxico), drove the USD/MXN pair higher.
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee took a cautionary stance on the ever-evolving trade stance of the Trump administration on Monday.
In a very positive start to the new trading week, the Greenback edged sharply higher following a fresh bout of optimism on the trade front, all after the auspicious US-China trade talks over the weekend.
The Canadian Dollar (CAD) fell further on Monday, shedding around one-half of one percent against the US Dollar (USD) as investors broadly bid up the Greenback after the Trump administration proudly announced that they would be walking back their own triple-digit tariffs on Chinese imports.
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, skyrocketed to a one-month high on Monday after China and the United States announced a 90-day pause in their trade war.
The US Dollar (USD) is trading higher against the Canadian Dollar (CAD) at the start of the week, supported by renewed risk appetite following a US–China trade agreement, diverging interest rate expectations, and anticipation of major US economic data.
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