AI-Enhanced Forex News Archive

Forexlive

May 20, 2025

EURUSD moves above swing area Makes new highs for the day

The EURUSD has made a technical push higher in today’s session, breaking above both the key swing area between 1.12657 and 1.12754, and the 38.2% retracement of the April–May decline at 1.12754. That dual-level break gives buyers added control in the short term and confirms momentum shifting back in favor of the bulls.Yesterday’s high stalled just above this zone at 1.12876, and that level now becomes the next key upside target.

USD EUR

Source: Finnhub

forexlive.com

May 20, 2025

Australian dollar bounces after rate cut

Some gains from the lows

AUDUSD

Source: Marketaux

Forexlive

May 20, 2025

EUR/USD may climb further as corporates adjust hedges - BofA

EUR/USD is trading near 1.0800, having gained 0.5% this week amid broad euro strength. Bank of America suggests that if the euro rally persists, underhedged European corporates may accelerate demand for EUR hedges, creating a positive feedback loop driving further EUR/USD gains. This effect could be amplified in thin liquidity conditions. Key resistance is seen at 1.0850, with a break above opening the door to the 1.1000 handle. However, a reversal below 1.0750 support could negate the bullish bias. Traders should monitor corporate hedging flows and liquidity metrics to gauge the potential for outsized EUR/USD moves in the near-term.

EURUSD

Sentiment: Very Positive

Source: Finnhub

forexlive.com

May 20, 2025

Bank of Canada rate cut odds plumment. Eyes now on next week's GDP data

CIBC on today's CPI report

USDCAD

Source: Marketaux

investing.com

May 20, 2025

Stocks Steady as Wall Street Awaits Fed Clarity and Trump’s Tax Vote

Market Analysis by covering: Euro US Dollar, British Pound US Dollar, FTSE 100, Dow Jones Industrial Average. Read 's Market Analysis on Investing.com

EURUSD

Source: Marketaux

investing.com

May 20, 2025

Australian Dollar Slides After RBA’s Dovish Rate Cut

Market Analysis by covering: Australian Dollar US Dollar. Read 's Market Analysis on Investing.com

AUDUSD

Source: Marketaux

Forexlive

May 20, 2025

Fed, ECB, BoE rate hike expectations stable; RBA cut 73bps by year-end

Market pricing for interest rate hikes by major central banks remains relatively stable, with the Fed expected to hike 54bps, ECB 52bps, BoE 45bps, BoC 47bps, RBNZ 58bps, and SNB 47bps by year-end. The RBA saw a dovish repricing to 73bps in cuts following comments from Governor Bullock favoring a 50bps move. The BoJ is anticipated to hike just 17bps. Expectations have generally returned to previous levels, suggesting stronger catalysts will be needed to further price out rate cuts. Traders should monitor upcoming central bank communications and key economic data to gauge any shifts in the monetary policy outlook, which could significantly impact forex markets.

AUDUSD EURUSD GBPUSD USDCHF USDJPY NZDUSD USDCAD

Sentiment: Neutral

Source: Finnhub

forexcrunch.com

May 20, 2025

USD/CAD slips to 1.3450 ahead of Canada inflation data release

USD/CAD is trading lower by 0.3% at 1.3450 as markets await the release of Canada's April CPI report. Analysts forecast headline inflation to ease to 4.1% YoY from 4.3% in March, while core inflation is expected to hold steady at 4.4%. A lower-than-expected CPI print could bolster expectations for the Bank of Canada to maintain rates at 4.5%, potentially weighing on the loonie. Immediate support is seen at 1.3420 (50-day moving average), with a break below exposing the 1.3350 level. Conversely, a hot inflation reading might fuel hawkish BOC bets, propelling USD/CAD towards resistance at 1.3500.

USDCAD

Sentiment: Negative

Source: Marketaux

investing.com

May 20, 2025

EUR/USD gains as US rate cut delay weakens dollar; resistance at 1.0875

EUR/USD is building upside momentum, appreciating 0.4% to 1.0865 as the US dollar weakens on expectations of a delayed Fed rate cut. The dollar index (DXY) has retreated 0.3% to 103.20. Recent US economic data, including lower-than-expected retail sales (-0.4% vs. +0.1% forecast) and industrial production (-0.5% vs. -0.1% forecast), have fueled concerns about slowing growth and reduced the urgency for near-term rate cuts. EUR/USD faces immediate resistance at 1.0875, with a break above exposing the 1.0900 handle. Support lies at 1.0820 (200-day moving average). Traders should watch for any shifts in Fed rhetoric or surprises in upcoming US data, which could alter rate cut timing expectations and drive EUR/USD price action.

EURUSD

Sentiment: Very Positive

Source: Marketaux

forexcrunch.com

May 20, 2025

AUD/USD drops to 0.6600 as RBA signals potential rate cuts ahead

AUD/USD has declined 0.8% to 0.6600 after the Reserve Bank of Australia struck a dovish tone in its latest policy meeting minutes. The central bank indicated that it might consider cutting interest rates in the coming months if inflation continues to cool and economic growth slows. Policymakers expressed concerns over the global economic outlook and its impact on Australia's export-driven economy. The dovish shift has prompted traders to price in a 25bps rate cut by August, with the possibility of further easing before year-end. AUD/USD is now testing support at 0.6580, with a decisive break exposing the 0.6500 handle. Resistance is seen at 0.6650.

AUDUSD

Sentiment: Very Negative

Source: Marketaux

investing.com

May 20, 2025

EUR/USD advances to 1.0900 as budget deficit concerns weigh on USD

EUR/USD has gained 0.4% to trade at 1.0900 as the US dollar faces pressure amid concerns over the widening US budget deficit. The US Treasury reported a $1.4 trillion deficit for the first seven months of the fiscal year, up 151% compared to the same period last year. This has raised doubts about the sustainability of US fiscal policy and the dollar's long-term strength. Meanwhile, the euro is finding support from better-than-expected Eurozone PMI data, which showed the manufacturing sector contracting at a slower pace in May. EUR/USD is now approaching resistance at 1.0920, with a breakout likely to target the 1.1000 psychological level. Support is seen at 1.0850.

EURUSD

Sentiment: Positive

Source: Marketaux

investing.com

May 20, 2025

Gold, AUD, CAD gain as US dollar slips on Fed rate cut uncertainty

The US dollar is weakening against commodity currencies and gold as uncertainty grows around the timing of Fed rate cuts. AUD/USD has climbed 0.5% to 0.6780, USD/CAD fell 0.3% to 1.3420, and gold prices rose 0.6% to $1,975/oz. Recent disappointing US data, including higher initial jobless claims (242K vs. 235K expected) and a miss on the Philly Fed Manufacturing Index (-10.4 vs. -5.0 expected), have cast doubts on the strength of the US economy and the Fed's rate path. USD/JPY has slipped 0.2% to 138.80. Traders should monitor upcoming Fed speakers for hints on the rate outlook and watch key support/resistance levels: AUD/USD (0.6800), USD/CAD (1.3400), and gold ($1,985). A more dovish Fed tone could further pressure the dollar.

AUDUSD USDCAD USDJPY XAUUSD

Sentiment: Positive

Source: Marketaux

investing.com

May 20, 2025

GBP/USD breaks bullish, targeting 1.2480 on BoE rate hike bets

GBP/USD has exited a bearish channel, rallying 0.5% to 1.2440 as traders raise bets on Bank of England (BoE) rate hikes following hawkish comments from policymakers. BoE Chief Economist Huw Pill noted that inflation remains too high, suggesting further tightening may be necessary. The pair now faces resistance at 1.2480 (50% Fibonacci retracement of the May decline), with a break above targeting 1.2520 (May 10 high). Support lies at 1.2400 (broken channel top) and 1.2360 (200-hour moving average). Traders should watch for UK GDP data next week (forecast: 0.1% QoQ) and any further BoE hints. A more hawkish tone and resilient growth could fuel GBP/USD upside, while disappointing data might cap gains.

GBPUSD

Sentiment: Very Positive

Source: Marketaux

Forexlive

May 20, 2025

German PPI declines 0.9% YoY in April as energy prices fall

Germany's Producer Price Index (PPI) fell 0.6% MoM in April 2025, exceeding expectations of a 0.3% drop and following a 0.7% decrease in March. On an annual basis, PPI declined 0.9% YoY, worse than the anticipated 0.6% fall and down from the previous month's 0.2% decrease. The primary driver of the YoY decline was lower energy prices. However, prices for non-durable and durable consumer goods, capital goods, and intermediate goods increased compared to April 2024. Excluding energy, PPI rose 1.5% YoY and 0.4% MoM. The data suggests that while overall producer prices are declining, inflationary pressures persist in certain sectors. This mixed picture may complicate the European Central Bank's monetary policy decisions, as it balances the need to control inflation with supporting economic growth. Traders will closely monitor upcoming Eurozone inflation and GDP data for further insights into the economy's health and potential implications for the euro.

EURUSD

Sentiment: Negative

Source: Finnhub

forexlive.com

May 20, 2025

USD/JPY swings as PBoC cuts rates; focus shifts to RBA decision

USD/JPY experienced volatility during Tuesday's Asian trading session, initially dipping to 138.20 before rebounding to 138.80. The early weakness was driven by the People's Bank of China's (PBoC) unexpected decision to cut its 1-year and 5-year Loan Prime Rates by 10 bps and 15 bps, respectively, in an effort to stimulate the slowing Chinese economy. However, the pair recovered as investors shifted their focus to the upcoming Reserve Bank of Australia (RBA) interest rate decision. The RBA is widely expected to maintain its cash rate at 3.50%, but the accompanying statement will be scrutinized for hints about future policy moves. Traders are also awaiting key US economic data later this week, including GDP and PCE inflation figures, which could influence the Federal Reserve's rate path and the dollar's strength. USD/JPY faces resistance at 139.00 (50-day moving average), with support at 137.80 (previous week's low).

USDJPY AUDUSD USDCNH

Sentiment: Neutral

Source: Marketaux

Forexlive

May 20, 2025

USD/JPY jumps as US-Japan trade talks set for Friday amid yen weakness

USD/JPY has surged 0.8% (95 pips) to 136.45 as the Japanese yen faces renewed selling pressure. The yen's weakness comes amidst expectations of US-Japan trade discussions scheduled for Friday, May 23. However, US Treasury Secretary Bessent is reportedly not planning to attend the meeting, potentially limiting the scope of any agreements. Japan's finance minister Kato hinted at intentions to discuss currency matters with Bessent this week, following Monday's working-level trade talks that yielded no changes to Japan's stance on eliminating US tariffs. USD/JPY now faces immediate resistance at 136.75, with a break above this level potentially accelerating gains towards 137.00. However, traders should monitor any comments from Japanese officials expressing concerns about rapid yen depreciation, which could limit USD/JPY's upside. Conversely, a lack of progress in trade negotiations might further pressure the yen.

USDJPY

Sentiment: Very Positive

Source: Finnhub

forexlive.com

May 20, 2025

Japan's finance minister Kato plans FX discussions with US amid USD/JPY drop

USD/JPY has retreated from earlier highs, prompted by comments from Japan's finance minister Shunichi Kato signaling his intention to discuss currency-related matters with US Treasury Secretary Bessent this week. The pair's pullback suggests that traders are cautious about potential verbal interventions or policy actions aimed at stemming the yen's rapid depreciation. However, the effectiveness of such discussions remains uncertain, given the diverging monetary policy stances between the Bank of Japan and the Federal Reserve. USD/JPY may find support at the 135.80 level, which aligns with the 38.2% Fibonacci retracement of the recent rally. A bounce from this support could see the pair retest the session high at 136.45. Conversely, a break below support might expose the 135.00 psychological level.

USDJPY

Sentiment: Negative

Source: Marketaux

forexlive.com

May 20, 2025

USD/JPY surges as yen faces renewed selling pressure

The USD/JPY pair has experienced a sharp upward movement, propelled by a fresh wave of selling in the Japanese yen. The yen's weakness comes amidst a backdrop of widening yield differentials between the United States and Japan, as the Bank of Japan maintains its ultra-loose monetary policy stance. This divergence in monetary policy continues to favor the US dollar over the yen. Technical analysis indicates that USD/JPY has broken above key resistance levels, which could pave the way for further gains in the near term. Traders should monitor any potential comments from Japanese officials expressing concern about the rapid pace of yen depreciation, as this could temporarily limit USD/JPY's upside momentum. However, the overall trend remains bullish for the pair, with the US dollar likely to maintain its strength against the yen as long as the current fundamental drivers persist.

USDJPY

Sentiment: Very Positive

Source: Marketaux