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
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
USD/CAD has fallen 0.5% (65 pips) to 1.3420 following the release of stronger-than-expected Canadian inflation data. Canada's April Consumer Price Index (CPI) rose 4.4% year-over-year, exceeding the forecast of 4.1% and accelerating from March's 4.2%. The robust inflation reading has reduced market expectations for a Bank of Canada (BoC) rate cut in June, bolstering the Canadian dollar. Conversely, the US dollar remains pressured by concerns over the country's fiscal situation and recent credit rating downgrade. USD/CAD is now testing key support at 1.3400, with a break below this level potentially triggering further losses toward 1.3350. However, resistance is noted at 1.3475, and a rebound above this level could negate the bearish momentum.
USDCAD
Sentiment:
Very Negative
Source: Marketaux
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
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
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
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
The US dollar has weakened against major rivals, with the dollar index (DXY) slipping 0.3% to 103.60, as concerns mount over the country's fiscal situation and ongoing trade tensions. The recent US credit rating downgrade by a major agency has further dampened sentiment, raising borrowing costs and adding pressure on policymakers to address the ballooning national debt. Meanwhile, gold prices have rallied 1.2% to $1,975 per ounce, benefiting from safe-haven demand amid geopolitical uncertainties and the weakening dollar. Central banks remain divergent in their policy approaches, with the Federal Reserve maintaining a hawkish stance despite growing economic headwinds, while others, like the European Central Bank and Bank of Japan, take a more cautious approach. Traders should closely monitor developments in US fiscal policy, trade relations, and central bank communications for further direction in the forex market.
USDX
XAUUSD
Sentiment:
Negative
Source: Marketaux
The USD/CAD pair has declined by 0.6% (75 pips) to 1.3320 as the Canadian dollar strengthens following the release of Canada's April CPI data. Headline inflation came in at 4.4% year-over-year, exceeding the consensus estimate of 4.1% and the Bank of Canada's target of 2%. Core CPI also surpassed expectations at 4.1%. The robust inflation figures have diminished the likelihood of a Bank of Canada interest rate cut at the June meeting, previously priced at a 40% probability. Conversely, the US dollar faces pressure as investors reevaluate the Federal Reserve's rate hike path. USD/CAD has broken below the key 1.3350 support level, exposing the pair to further downside. Traders now eye the 1.3300 psychological level, with a breach potentially triggering a deeper correction. However, a resurgence of US economic strength or a dovish shift in BoC rhetoric could limit the Canadian dollar's gains.
USDCAD
Sentiment:
Very Negative
Source: Marketaux
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
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
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
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
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
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
EUR/USD has pushed convincingly above the key 1.1266-1.1275 swing zone and the 38.2% Fibonacci retracement of the April-May decline at 1.1275, reaching a new daily high. The decisive breakout signals strengthening bullish momentum and a potential continuation of the uptrend. Yesterday's high at 1.1288 now acts as the immediate upside target. A sustained break above this level could open the door for a test of the 1.1300 psychological barrier. However, failure to maintain gains above 1.1275 might lead to a retracement back towards initial support at 1.1250.
EURUSD
Sentiment:
Very Positive
Source: Finnhub
AUD/USD has staged a modest recovery from its post-RBA low, after the central bank surprised markets with a larger-than-anticipated 25 basis point rate cut. The pair briefly dipped below 0.6700 but has since rebounded to trade around 0.6725, still down 0.5% on the day. The RBA's dovish move, aimed at combating slowing economic growth and persistently low inflation, has raised expectations of further easing in the coming months. Support is now seen at the daily low near 0.6700, with resistance at the pre-RBA level of 0.6750. Traders will closely monitor upcoming Australian economic data for clues on the RBA's next policy steps.
AUDUSD
Sentiment:
Negative
Source: Marketaux
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
The probability of a Bank of Canada rate cut has diminished significantly following the release of stronger-than-expected Canadian inflation data. The annual CPI came in at 2.4%, above the consensus forecast of 2.2%, while core CPI remained steady at 2.0%. This suggests that inflationary pressures are well-anchored, reducing the need for immediate policy easing. As a result, USD/CAD has fallen 0.3% to 1.3280, erasing earlier gains. Traders are now shifting their focus to next week's Canadian GDP report for further insights into the economy's health and its potential impact on the BoC's policy stance.
USDCAD
Sentiment:
Neutral
Source: Marketaux
US stock futures are trading flat as investors await clarity from the Federal Reserve's meeting minutes and the upcoming vote on President Trump's tax reform plan. The minutes could shed light on the Fed's views on inflation and the pace of future rate hikes. Meanwhile, the tax vote outcome may impact market sentiment and the US dollar. In the forex market, EUR/USD and GBP/USD are trading cautiously, with both pairs consolidating recent gains. Traders are closely monitoring political developments in Europe and the UK, as well as any shifts in monetary policy expectations.
EURUSD
GBPUSD
Sentiment:
Neutral
Source: Marketaux