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AI-Enhanced Forex News Archive

Professional trading insights from Thursday, May 28, 2026

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News Statistics for Thursday, May 28, 2026

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Archive date: Thursday, May 28, 2026

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Forexlive

Economic and event calendar in Asia Friday, May 29, 2026 - Japan inflation

A packed data agenda ahead for the day here in Asia-Pacific. Tokyo inflation data is due. Tokyo consumer prices are expected to show little movement in May compared with April, with key inflation measures remaining at or below the Bank of Japan's 2% target, as you can see in the screenshot.The capital's CPI is likely to reflect competing forces.
Source: Finnhub
Forexlive

USD Strengthens as Fed's Musalem Signals Hawkish Shift on Rates

The US dollar gained broad support following hawkish remarks from Federal Reserve official Musalem, who indicated that the bond market is signaling a resilient economy alongside higher expected inflation. Musalem noted that most of the recent move higher in bond yields reflects a higher expected neutral rate, suggesting that interest rates may need to stay elevated for longer than previously anticipated. Critically, Musalem expressed a desire to remove the Fed's existing easing bias, a significant policy stance shift that reinforces dollar strength across major pairs. He also advocated for reducing the banking system's demand for reserves to provide a smoother path toward a smaller Fed balance sheet. The comments pushed USD/JPY and EUR/USD into focus, with the dollar index firming as traders repriced rate cut expectations. For near-term positioning, the hawkish tone supports continued dollar demand, particularly against lower-yielding currencies. Traders should monitor upcoming inflation data and further Fed commentary for confirmation of this policy trajectory.
EURUSD USDJPY
Sentiment: Very Positive
Source: Finnhub
Forexlive

USD/IRR & Oil Prices React to US-Iran Tentative 60-Day Deal

A tentative 60-day Memorandum of Understanding between the United States and Iran has been reported by Axios, introducing significant geopolitical implications for forex and commodity markets. Iranian negotiators reportedly secured approval from senior leadership and indicated readiness to sign, though the agreement still requires final approval from President Trump, who has requested several days to review the proposal. The potential deal carries broad implications for crude oil markets, as any easing of sanctions or diplomatic normalization could increase Iranian oil supply, pressuring WTI and Brent prices lower. A decline in oil prices would weigh on commodity-linked currencies such as CAD and NOK, while potentially benefiting oil-importing nations' currencies like JPY and INR. The US dollar may see mixed reactions — reduced geopolitical risk could suppress safe-haven demand, softening USD and JPY flows. Traders should monitor Trump's final decision closely, as ratification would likely trigger a risk-on move across markets, supporting EUR/USD and AUD/USD while pressuring USD/CAD higher on weakening crude.
EURUSD USDCAD USDJPY AUDUSD
Sentiment: Positive
Source: Finnhub
rttnews.com

USD/JPY Surges as U.S.-Iran Tensions Spike Oil and Bond Yields

A fresh escalation in U.S.-Iran hostilities rattled global markets, triggering sharp moves across forex, commodities, and fixed income. Crude oil prices surged on supply disruption fears stemming from the Middle East flare-up, while bond yields spiked as markets repriced risk premiums. The geopolitical shock drove safe-haven flows into the Japanese yen and Swiss franc, pressuring USD/JPY and EUR/CHF lower, while commodity-linked currencies such as CAD and NOK found support from rising oil prices. USD/CAD declined as the Canadian dollar benefited from the crude rally. Risk-sensitive pairs including AUD/USD and NZD/USD came under pressure as broader risk appetite deteriorated across regions. The spike in volatility has widened spreads and reduced liquidity in several major pairs. Traders should exercise caution given the elevated geopolitical uncertainty, with key focus on any diplomatic developments or further military escalation. Near-term, safe-haven demand is likely to persist, supporting JPY and CHF while weighing on risk currencies.
USDJPY EURCHF USDCAD AUDUSD NZDUSD
Sentiment: Negative
Source: Marketaux
Forexlive

EUR/USD Edges Higher as Eurozone Sentiment Beats Forecasts Despite Lingering Risks

EUR/USD saw modest upward pressure following the release of Eurozone economic sentiment data for May, which came in at 93.5, surpassing the expected 92.8 and improving from a revised prior reading of 93.2. Despite the beat, the indicator remains well below its long-term average of 100, reflecting persistent headwinds from the ongoing Middle East conflict. The breakdown reveals a mixed picture: industrial confidence deteriorated further on the month, while a minor rebound in services confidence provided the primary lift. The data suggests the Eurozone economy is stabilizing but far from robust recovery territory, keeping the European Central Bank's easing bias intact. For EUR/USD traders, the modest improvement supports near-term consolidation rather than a decisive breakout. Key resistance lies near recent session highs, while support is anchored around prior weekly lows. Traders should monitor upcoming Eurozone inflation data and any escalation in geopolitical tensions, which could quickly reverse the tentative improvement in sentiment and weigh on the euro.
EURUSD
Sentiment: Neutral
Source: Finnhub
investing.com

USD/JPY Rallies on Risk-Off Surge as Strait of Hormuz Tensions Escalate

Risk-off sentiment gripped global markets as hopes for de-escalation around the Strait of Hormuz faded, driving sharp moves across forex and commodity markets. The Japanese yen strengthened broadly as traders sought safe-haven assets, putting downward pressure on USD/JPY and yen crosses. The US Dollar Index futures initially found support from haven demand but faced competing flows as the S&P 500 sold off, reflecting deteriorating risk appetite. Brent crude oil futures surged on supply disruption fears, adding inflationary concerns that complicate central bank rate paths. The geopolitical premium is now firmly embedded in energy prices, with potential spillover effects on commodity-linked currencies such as CAD and AUD. For traders, the key dynamic is the tug-of-war between dollar and yen safe-haven demand. Near-term, USD/JPY faces downside risk if equity selling intensifies, while resistance may cap any recovery attempts. Monitoring developments around Hormuz and energy supply routes remains critical for positioning across major pairs.
USDJPY
Sentiment: Very Negative
Source: Marketaux
Forexlive

USD Weakens as US-Iran Deal Uncertainty Fuels Risk-Off Sentiment

The US dollar is facing broad pressure on Thursday as markets adopt a cautious stance amid the prolonged absence of any confirmed US-Iran memorandum of understanding. Negotiations that were initially described as "imminent" since last weekend have now dragged into their fifth day without official resolution, creating persistent uncertainty across forex markets. Conflicting headlines and reports of increased tensions on the ground have amplified risk aversion, driving flows into traditional safe havens such as JPY and CHF. USD/JPY has come under selling pressure as traders reduce risk exposure, while EUR/USD edges higher on relative dollar weakness. The lack of clarity is keeping volatility elevated, with traders reluctant to take directional positions ahead of any potential breakthrough or breakdown in talks. Key support for the Dollar Index sits near recent weekly lows, while resistance remains at pre-negotiation levels. Traders should monitor headline risk closely, as any confirmed agreement or escalation could trigger sharp moves across major pairs.
USDJPY EURUSD USDCHF
Sentiment: Negative
Source: Finnhub
thestockmarketwatch.com

USD/JPY Drops as Iran Claims Strike on US Base; Safe Havens Surge

Global markets are under significant pressure early Thursday following a statement from the Islamic Revolutionary Guard Corps claiming a strike on a US airbase, triggering a sharp risk-off move across asset classes. USD/JPY has fallen sharply as the Japanese yen attracts heavy safe-haven demand, while USD/CHF also declines amid the flight to safety. Gold has surged alongside yen and franc strength, reflecting the severity of the geopolitical escalation. Simultaneously, the EU announced an escalation in trade defense measures against China, adding a secondary layer of uncertainty to global risk sentiment and weighing on EUR crosses. Oil prices have spiked on fears of broader Middle East conflict, which could further complicate central bank inflation outlooks. Equity futures are pointing sharply lower, reinforcing the defensive positioning in forex markets. Near-term support for USD/JPY sits at key psychological levels, while resistance for safe-haven currencies may be tested if the situation deteriorates further. Traders should exercise extreme caution given the elevated headline risk and potential for rapid reversals.
USDJPY USDCHF EURUSD EURCHF
Sentiment: Very Negative
Source: Marketaux
Forexlive

NZD/USD under pressure as NZ cuts GDP growth forecast despite narrower deficit

NZD/USD faces headwinds following New Zealand's latest budget update, which presented a mixed fiscal picture for the kiwi dollar. While the 2025/26 budget deficit narrowed to NZ$15.06 billion and net debt was revised down to 42.4% of GDP from the prior 43.3% estimate, the government downgraded its 2026/27 GDP growth forecast to 2.3% and projected inflation peaking at 4.0% in Q2 2026. Peak net debt was also trimmed to 46.1% of GDP in 2027/28, down from a previously forecast 46.9%. The conflicting signals — improved near-term fiscal metrics against a weaker growth outlook and rising inflation expectations — create uncertainty for NZD traders. The inflation peak projection could complicate the Reserve Bank of New Zealand's easing trajectory, potentially keeping rates elevated longer than markets anticipate. However, the growth downgrade weighs on the currency's medium-term outlook. Traders should monitor upcoming RBNZ commentary for guidance on how policymakers interpret the fiscal update and its implications for monetary policy direction.
NZDUSD
Sentiment: Negative
Source: Finnhub

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