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
The Australian dollar has experienced a sharp sell-off against the US dollar after the Reserve Bank of Australia (RBA) unexpectedly cut interest rates by 25 basis points to a record low of 0.75%. AUD/USD plunged over 1% to a low of 0.6700 following the announcement, as the central bank cited risks to global growth and domestic consumption. The RBA also maintained a dovish outlook, suggesting that further easing may be necessary to support the economy and boost inflation. The pair now faces key support at 0.6680, with a break below this level potentially triggering a deeper correction.
AUDUSD
Sentiment:
Very Negative
Source: Marketaux
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
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
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
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
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
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
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
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