AI-Enhanced Forex News Archive

Forexlive

May 21, 2025

US House Majority Leader Scalise. House will vote on tax bill today

This article was written by Greg Michalowski at www.forexlive.com.

Source: Finnhub

morningstar.co.uk

May 21, 2025

Safe - Haven Status Heaps Pressure on Swiss National Bank

Demand for Switzerland’s currency and bonds has surged.

USDCHF

Source: Marketaux

Forexlive

May 21, 2025

USD falls as debt ceiling progress stalls; Trump-Republican meeting eyed

The US dollar index (DXY) is down 0.2% as doubts emerge over the pace of debt ceiling negotiations. House Speaker Johnson and Freedom Caucus Chair Harris are set to meet President Trump at 3pm ET, but earlier comments suggest a resolution is unlikely this week. Harris noted encouraging 24-hour progress but estimated 10 more days are needed. The GOP also sees substantial work remaining. If Trump pressures House Republicans for faster action, it could boost the dollar. However, protracted uncertainty may keep USD bears in control near term. DXY faces support at 103.20 with resistance at 104.00.

USDJPY EURUSD GBPUSD

Sentiment: Negative

Source: Finnhub

investing.com

May 21, 2025

USD/JPY reverses from 141.50 high as 30-year Treasury yield tops 5%

USD/JPY has retreated 0.4% from session highs near 141.50 as the 30-year US Treasury yield briefly surpassed 5% for the first time since 2007. The jump in long-term yields reflects investor jitters over the US debt ceiling and potential for higher government borrowing costs. However, safe-haven demand for the Japanese yen is capping USD/JPY upside. Technically, the pair formed a bearish inverted hammer candle on the daily chart, hinting at a possible short-term top. Initial support is seen at the 140.00 psychological level, with 139.50 below that. A climb above 141.50 could negate the bearish pattern.

USDJPY

Sentiment: Negative

Source: Marketaux

timesofindia.indiatimes.com

May 21, 2025

US markets open lower amid rising treasury yields; gold and oil gain

International Business News: US stock market today: US stock markets opened lower on Wednesday, weighed down by rising treasury yields and investor caution ahead of key economic d.

EURUSD

Source: Marketaux

zerohedge.com

May 21, 2025

Futures dip, 30Y yields top 5% on debt woes; Oil up as Iran tensions flare

US stock futures are edging lower as the 30-year Treasury yield rises above 5% amid ongoing US debt ceiling concerns. The elevated yields reflect increased borrowing costs and potential economic headwinds if the debt impasse persists. Uncertainty is weighing on market sentiment and boosting safe-haven demand for the US dollar. Meanwhile, oil prices have jumped nearly 2% as tensions between the US and Iran escalate, raising geopolitical risk premiums. The developments are likely to keep the greenback supported against riskier currencies like the AUD and NZD, while the JPY and CHF could also find haven bids. Traders await further debt negotiation progress.

AUDUSD NZDUSD USDJPY USDCHF

Sentiment: Very Negative

Source: Marketaux

investing.com

May 21, 2025

GBP/USD faces resistance at 1.2480; DAX bullish above 16,240

GBP/USD is consolidating below resistance at 1.2480 (May 19 high) after a 0.3% uptick on the back of hotter-than-expected UK inflation data. The pair is up 60 pips from intraday lows near 1.2420 but faces a critical technical hurdle to extend the rebound. A decisive break above 1.2480 could expose the 1.2500 figure. However, fading BoE rate hike expectations are keeping sterling gains in check. Immediate support is at 1.2440. Meanwhile, Germany's DAX index is wavering around 16,240 points, up 0.2% on the day. Bulls need to push the index convincingly past this level to confirm a bullish continuation signal. Such a move could open the door for a rally towards 16,300. Support is at 16,200.

GBPUSD EURGBP

Sentiment: Neutral

Source: Marketaux

Forexlive

May 21, 2025

EURUSD: US House agrees on $40k SALT cap; dollar retreats

The US dollar has declined against the euro following news that US House Speaker Johnson reached an agreement on raising the State and Local Tax (SALT) deduction cap to $40,000. This breakthrough is seen as a significant step forward in passing the party's tax reform bill. Hardline conservatives had previously resisted substantial increases to the cap. A House vote is expected to take place tonight. The development has weighed on the dollar, allowing EURUSD to climb 0.2% to 1.0820. However, further upside may be limited as traders await more concrete progress. Immediate resistance is noted at 1.0840, with support at 1.0790. A conclusive break above 1.0850 could open the door to a test of 1.0900.

EURUSD

Sentiment: Positive

Source: Finnhub

forexcrunch.com

May 21, 2025

GBP/USD pulls back as UK inflation jump dampens imminent BoE rate cut hopes

GBP/USD has erased earlier gains and slipped 0.2% to 1.2440 after UK inflation data surprised to the upside, cooling expectations for an imminent Bank of England rate cut. The UK Consumer Price Index rose 8.7% year-on-year in April, above the forecast 8.2% and the previous 8.5%. Core inflation also jumped to 6.8% from 6.6%. The higher-than-anticipated inflation readings suggest the BoE may need to keep interest rates higher for longer to tame price pressures. This realization has taken some steam out of sterling's rally. GBP/USD faced rejection at the 1.2480 resistance and could test support at 1.2400 on a sustained move lower. However, the overall trend remains positive above the 50-day moving average at 1.2360.

GBPUSD

Sentiment: Neutral

Source: Marketaux

financefeeds.com

May 21, 2025

Global FX Market Summary: Weakening US Dollar, Geopolitical Tensions, Gold 21 May 2025

USD weakens amid trade tensions, fiscal concerns, and rating downgrade; gold rallies on geopolitical risks; central banks diverge on policy.

EURUSD

Sentiment: Negative

Source: Marketaux

forexcrunch.com

May 21, 2025

USD/CAD Price Analysis: BoC Rate Cut Odds Fall Amid Hot CPI

The USD/CAD price analysis indicates a lower likelihood of a Bank of Canada rate cut in June, which is pushing the Canadian dollar higher.

USDCAD

Sentiment: Very Negative

Source: Marketaux

investing.com

May 21, 2025

XAUUSD surges as geopolitical risks escalate, USD weakens

Gold prices (XAUUSD) have surged 1.5% to $1,985 per ounce amid heightened geopolitical tensions and a broadly weaker US dollar. The escalating conflict in the Middle East has driven safe-haven demand for the precious metal. Meanwhile, the US Dollar Index (DXY) has slipped 0.4% to 102.50, further supporting gold's rally. The recent string of mixed US economic data, including softer retail sales and industrial production figures, has raised doubts about the strength of the US economy, weighing on the dollar. Technical analysis shows gold breaking above key resistance at $1,975, with the next major hurdle at the psychological $2,000 level. However, overbought conditions on the daily RSI suggest a potential pullback in the near term. Traders should monitor geopolitical developments and USD dynamics closely.

XAUUSD DXY

Sentiment: Very Positive

Source: Marketaux

Forexlive

May 21, 2025

UK April CPI jumps to 3.5%, core CPI 3.8% - GBP/USD pressured

GBP/USD has retreated 0.5% to 1.2420 on the surprising jump in UK April CPI to 3.5% y/y (vs. 3.3% expected) from prior 2.6%. Core CPI also surged to 3.8%, above 3.6% forecasts. The stronger than anticipated inflation readings have led markets to reprice Bank of England rate cut expectations, with only 25-28 bps of easing now priced by year-end. Robust services CPI at 5.4% (vs. 4.8% expected) further underscores persistent price pressures. This upside inflation surprise raises doubts about the BoE's ability to lower rates again in 2025. GBP/USD has found immediate support at 1.2400, but a sustained break below could expose the 1.2350 level. Resistance is noted at 1.2475. Traders will closely monitor upcoming UK economic data and BoE commentary to gauge the central bank's policy stance amid stubborn inflation.

GBPUSD

Sentiment: Very Negative

Source: Finnhub

investing.com

May 21, 2025

GBPUSD pressured as UK inflation sticks; USDCAD eyes BoC

GBPUSD has slipped 0.3% to 1.2420 after UK CPI data showed inflation remained stubbornly high at 8.7% in April, exceeding the expected 8.2%. The persistent inflationary pressures complicate the Bank of England's policy path, as it grapples with balancing price stability and economic growth concerns. Markets are now pricing a 65% chance of a 25bps rate hike at the next BoE meeting. GBPUSD faces immediate support at 1.2380, with resistance at 1.2475. Meanwhile, USDCAD is trading steady at 1.3540 ahead of the Bank of Canada's rate decision. The BoC is widely expected to keep rates on hold at 4.5%, but the accompanying statement will be closely watched for hints on the future policy trajectory. A hawkish tone could lift USDCAD towards 1.3600, while a dovish stance may see the pair test 1.3500 support.

GBPUSD USDCAD

Sentiment: Negative

Source: Marketaux

investing.com

May 21, 2025

USDJPY, USDCHF slump as USD sell-off accelerates post-trendline breaks

The US dollar has extended losses against the Japanese yen and Swiss franc, with USDJPY plunging 1.2% to 138.40 and USDCHF down 0.8% to 0.8980. The sharp sell-off follows the breach of key trendline support levels in both pairs, triggering stop-loss orders and inviting further technical selling. The broader risk-off sentiment in global markets, driven by concerns over the US debt ceiling and Chinese economic slowdown, has dampened demand for the greenback. USDJPY now eyes support at 137.50, with a break below exposing the 135.00 handle. For USDCHF, the 0.8950 level acts as immediate support. The US Dollar Index (DXY) has also come under pressure, sliding 0.6% to 101.80. A sustained break below the 102.00 mark could signal a deeper correction in the USD, potentially benefiting EURUSD and GBPUSD.

USDJPY USDCHF DXY EURUSD GBPUSD

Sentiment: Very Negative

Source: Marketaux

forexlive.com

May 21, 2025

Oil spikes as Israel prepares Iran attack; USD/JPY, AUD/USD react

Oil prices surged 3% in Asian trading Wednesday on reports Israel is preparing a potential attack on Iran, sparking geopolitical risk concerns. Brent crude jumped to $78.50/barrel, while WTI climbed to $74.30/barrel. The oil-sensitive Canadian dollar strengthened, with USD/CAD dropping 0.4% to 1.3320. Traditional safe-haven currencies also benefited, with USD/JPY falling 0.3% to 138.80 and the Swiss franc gaining. In contrast, the risk-sensitive AUD/USD pair slid 0.5% to 0.6680. Gold, another safe-haven asset, rose 0.8% to $1,950/oz. Heightened Middle East tensions could further support oil prices and haven currencies in the near-term. However, if the situation de-escalates, the moves could reverse. Traders are advised to monitor developments closely and manage risk appropriately given the fluid geopolitical landscape.

USDCAD USDCHF USDJPY AUDUSD

Sentiment: Neutral

Source: Marketaux

Forexlive

May 21, 2025

USD/CNH drops as Morgan Stanley lifts China 2025 GDP forecast to 4.5%

USD/CNH has declined 0.5% to 6.8320 after Morgan Stanley raised its forecast for China's 2025 GDP growth to 4.5%, up from the previous estimate of 4.2%. The more optimistic outlook comes as US-China trade tensions show signs of easing following recent high-level talks. China's manufacturing and services PMIs both exceeded expectations in May, coming in at 51.2 and 54.5, respectively. This suggests that the world's second-largest economy is regaining momentum despite ongoing global challenges. The positive data has boosted risk sentiment, driving demand for the Chinese yuan. USD/CNH now faces immediate support at 6.8200, with further downside potential toward 6.8000 if trade relations continue to improve. However, resistance at 6.8500 could cap gains if geopolitical uncertainties resurface.

USDCNH

Sentiment: Very Positive

Source: Finnhub