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
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
The US dollar index held steady near 103.50 as US Treasury officials tempered expectations for significant trade announcements during the upcoming G7 meeting. While global trade relations remain a key focus for policymakers, the lack of anticipated breakthroughs suggests ongoing uncertainty in the near term. Traders will closely monitor official statements from the gathering for any indications of progress or setbacks. Technical analysis shows the dollar index facing resistance at the 104.00 level, with support around 102.80. A break below this support could see the greenback test the 102.00 handle. However, broader sentiment remains neutral, with the dollar's trajectory largely dependent on evolving economic data and central bank signaling in the coming weeks.
USDJPY
EURUSD
GBPUSD
USDCHF
USDCAD
AUDUSD
NZDUSD
Sentiment:
Neutral
Source: Finnhub
AUD/USD has jumped 0.8% to 0.6785, reaching a two-month high and challenging the 200-day moving average resistance at 0.6800. The rally is driven by broad-based US dollar weakness after Moody's unexpectedly downgraded the United States' credit rating, citing fiscal deterioration and governance challenges. The Australian dollar is also benefiting from improved risk sentiment and expectations of a Reserve Bank of Australia rate cut in the coming months as inflation pressures ease. Immediate resistance is at the 200-day MA (0.6800), followed by the psychological 0.6850 level. Support has shifted higher to 0.6750 (previous resistance) and 0.6700. A decisive break above the 200-day MA could pave the way for further AUD/USD gains, while failure to sustain the momentum might lead to a pullback.
AUDUSD
Sentiment:
Very Positive
Source: Finnhub
EUR/USD has gained 0.4% to trade at 1.0780, buoyed by growing hopes for constructive trade discussions between the United States and the European Union. The positive sentiment follows recent comments from EU officials signaling a willingness to engage in negotiations and seek mutually beneficial outcomes. A successful resolution to trade disputes could provide a significant boost to the euro, which has struggled against the dollar in recent months. However, traders remain cautious, awaiting concrete developments and official statements. Technically, EUR/USD faces resistance at 1.0820, with a break above this level potentially opening the door for a test of the 1.0900 handle. On the downside, support is seen at 1.0740 and 1.0700.
EURUSD
Sentiment:
Very Positive
Source: Marketaux
The New Zealand dollar has surged against the US dollar, with NZD/USD climbing 0.8% to 0.6320 following a downgrade to the United States' credit rating. The move by a major credit agency reflects concerns over the country's fiscal trajectory and could exert further pressure on the greenback in the near term. Consequently, the US Dollar Index has slipped 0.5% to 102.80. The downgrade may also influence US Treasury yields, with the 10-year yield currently at 3.55% and the 30-year yield at 3.82%. As market participants digest the implications of the rating action, the NZD could extend gains against the USD. However, traders should monitor upcoming US economic data and Federal Reserve commentary for any shifts in sentiment. NZD/USD now faces resistance at 0.6350, with support at 0.6280.
NZDUSD
Sentiment:
Negative
Source: Marketaux
USD/JPY has declined 0.6% to trade at 138.50, as the recent downgrade of the United States' credit rating weighs on dollar sentiment. The move by a prominent credit agency highlights concerns over the US fiscal outlook, prompting investors to reassess their positions in the greenback. Consequently, the dollar has weakened against major peers, including the Japanese yen. The USD/JPY pair now faces immediate support at 138.20, with a break below this level potentially triggering further losses toward 137.50. On the upside, resistance is seen at 139.00 and 139.50. Traders will closely monitor US economic indicators and Federal Reserve comments in the coming days to gauge the impact of the credit rating action on the central bank's policy stance. Disappointing data or dovish remarks could exacerbate the dollar's weakness against the yen.
USDJPY
Sentiment:
Very Negative
Source: Marketaux
US stock futures have declined while bond yields and gold prices surged in response to Moody's surprise downgrade of the United States' long-term sovereign credit rating from Aaa to Aa1. The ratings agency cited eroding fiscal strength, increased debt burden, and weakening governance as key drivers behind the downgrade. S&P 500 futures are down 0.6%, and the 10-year US Treasury yield has climbed 8 basis points to 3.75%. Spot gold, often seen as a safe-haven asset, has risen 1.2% to $1,950 per ounce. The US dollar index has plunged 0.9% to 102.50, its lowest level in two months. Traders are now reassessing the Federal Reserve's rate hike path, with the downgrade potentially limiting the central bank's ability to raise rates aggressively. The US dollar could face further pressure against major currencies, while gold might extend gains as investors seek refuge from economic uncertainties.
XAUUSD
Sentiment:
Negative
Source: Marketaux
AUD/USD has gained 0.5% to trade at 0.6765, buoyed by easing inflationary pressures in Australia and expectations of a rate cut by the Reserve Bank of Australia (RBA). The Australian Bureau of Statistics reported that the Consumer Price Index (CPI) rose 5.8% year-on-year in Q1 2025, down from 6.3% in the previous quarter and below the RBA's target range of 2-3%. Core inflation also moderated to 5.2% from 5.5%. The RBA is now widely anticipated to lower its cash rate by 25 basis points to 3.25% at its upcoming meeting to support economic growth. Technically, AUD/USD faces immediate resistance at 0.6800 (200-day moving average), followed by 0.6850. Support is located at 0.6720 (previous resistance turned support) and 0.6680. A sustained break above 0.6800 could signal further upside potential, while a dovish RBA could limit gains.
AUDUSD
Sentiment:
Very Positive
Source: Marketaux
Asian and European stock markets have retreated while the US dollar has weakened following Moody's downgrade of the United States' long-term sovereign credit rating from Aaa to Aa1. The ratings agency cited fiscal deterioration, rising debt burden, and governance challenges as reasons for the downgrade. Japan's Nikkei 225 index fell 0.8%, China's Shanghai Composite dropped 0.6%, and Hong Kong's Hang Seng declined 1.1%. In Europe, the STOXX 600 index opened 0.5% lower, with banking and financial stocks leading the losses. The US dollar index has slipped 0.7% to 102.70, its lowest level in two months, as investors reassess the Federal Reserve's rate hike trajectory. EUR/USD has climbed 0.6% to 1.0920, while USD/JPY has plunged 1.1% to 138.50. Traders now await further commentary from the Fed and the US Treasury regarding the potential impact of the downgrade on monetary and fiscal policies.
EURUSD
USDJPY
Sentiment:
Negative
Source: Marketaux
Gold (XAU/USD) has strengthened by 0.6% to $1,935 per ounce as Moody's surprise downgrade of the US credit rating from Aaa to Aa1 triggered fresh worries about the US economy and debt levels. The rating agency cited deteriorating fiscal strength and rising government debt burden for the downgrade. This development weighed on the US Dollar Index (DXY), which fell 0.4% to 102.8, supporting gold prices. However, the 10-year US Treasury yield rose 3 basis points to 3.52%, capping gold's upside. Near-term resistance for XAU/USD lies at $1,945 (weekly high), while support is seen at $1,920 (5-day moving average). A sustained break above $1,950 could open the door for a test of the $2,000 psychological level, especially if US economic concerns persist.
XAUUSD
DXY
Sentiment:
Positive
Source: Marketaux
EUR/USD has gained 0.2% to reach 1.0810 during Friday's session, driven by broad-based US Dollar weakness. However, the pair appears unlikely to break through the key resistance level at 1.0820 (38.2% Fibonacci retracement of the 2022-2023 downtrend) in the near term. The bearish momentum in the greenback seems to have peaked, with the US Dollar Index (DXY) finding support at 102.50. The euro's upside remains capped by sluggish Eurozone economic data and cautious European Central Bank rhetoric. Traders should watch for a potential reversal if EUR/USD fails to close above 1.0820 on a daily basis. Immediate support is located at 1.0780 (5-day moving average), followed by 1.0750 (50% Fibonacci retracement).
EURUSD
DXY
Sentiment:
Neutral
Source: Finnhub
GBP/USD has surged 0.8% to 1.2680, approaching its highest level since April 2022, supported by strong technical momentum and disappointing US consumer sentiment data. The University of Michigan Consumer Sentiment Index fell to 57.7 in May, missing expectations of 63.0 and marking the lowest reading in six months. This soft US data weighed on the US Dollar Index (DXY), which dropped 0.6% to 102.2. Technically, GBP/USD has broken above the key resistance at 1.2670 (61.8% Fibonacci retracement of the 2021-2022 decline), paving the way for a potential test of the 1.2750 level (78.6% Fibonacci retracement). Immediate support now lies at 1.2620 (5-day moving average). A sustained break above 1.2750 could see the pair targeting the psychological 1.3000 mark, especially if UK economic data continues to outperform expectations.
GBPUSD
DXY
Sentiment:
Very Positive
Source: Marketaux
The euro is gaining ground against the U.S. dollar in early trading, with EUR/USD rising 0.2% to 1.0820 on reports that the European Union and United Kingdom have reached an outline deal to bolster bilateral relations. The agreement, expected to be finalized at an upcoming meeting, aims to foster closer cooperation across various sectors post-Brexit. This development has injected positive sentiment into the euro, as improved UK-EU ties could support economic stability and growth in the region. However, the U.S. dollar remains pressured following Moody's recent downgrade of the U.S. credit rating, citing fiscal and institutional challenges. Traders now await key U.S. economic data releases later this week, including GDP and PCE inflation figures, for further insights into the Federal Reserve's monetary policy trajectory. EUR/USD faces immediate resistance at 1.0850, with a break above potentially opening the door for a test of the 1.0900 psychological level.
EURUSD
Sentiment:
Positive
Source: Finnhub
The U.S. dollar has opened the week on a soft note against the Japanese yen, with USD/JPY declining 0.3% to 138.40 following Moody's downgrade of the United States' credit rating from Aaa to Aa1. The rating agency cited rising fiscal vulnerabilities and expected further deterioration in the country's debt and fiscal metrics as key drivers behind the move. This development has weighed on the greenback, as concerns grow over the long-term economic implications of elevated government debt levels. Meanwhile, other Asian currencies have seen muted trading, with investors cautiously assessing the potential spillover effects of the U.S. rating downgrade on regional markets. USD/JPY now faces support at 138.00, with a breach potentially leading to a deeper correction towards 137.50. Traders will closely monitor U.S. Treasury yields and risk sentiment for further direction, while also keeping an eye on any potential response from U.S. policymakers to address fiscal challenges.
USDJPY
Sentiment:
Negative
Source: Marketaux
In comments on China's economic outlook, a National Bureau of Statistics spokesman expressed confidence in the country's ability to navigate various challenges, including trade frictions. The spokesman noted that foreign trade enterprises have increased their capacity to develop markets and adjust to fluctuations. However, he acknowledged that current overall low prices will pressure enterprises and affect income growth, while structural contradictions in employment, especially for youth, remain prominent. Despite these headwinds, the spokesman asserted that China has the conditions, ability, and confidence to deal with the difficulties through strengthened policy coordination. The overall tone suggests cautious optimism, recognizing near-term hurdles but emphasizing China's economic resilience and policy tools to support growth and stability.
USDCNH
USDCNY
Sentiment:
Neutral
Source: Finnhub
The US dollar has started the week on a weaker note following Moody's downgrade of the US credit rating late Friday. The move reflects growing concerns about the trajectory of US fiscal policy, with Treasury Secretary Scott Bessent's apparent shift in stance on the issue adding to the negative sentiment. While specific dollar pairs are not mentioned, the greenback is likely to face broad-based pressure against major counterparts like the euro, yen, and pound. Immediate support for the dollar index (DXY) is seen at the 101.80 level, with a break below potentially accelerating losses. However, the US currency's status as a safe haven could limit the downside if risk aversion intensifies. Traders will closely watch comments from US officials and any signs of a change in fiscal policy direction for further cues.
EURUSD
USDJPY
GBPUSD
Sentiment:
Very Negative
Source: Finnhub
The British pound is gaining momentum against major currencies, with GBP/USD up 0.6% to 1.2480, as markets anticipate a significant Brexit "reset" announcement from UK Prime Minister Starmer on Monday. The deal is expected to bring Britain into the closest alignment with the EU since Brexit, covering trade, agriculture, security, and defense. It will also include a youth mobility agreement, fostering closer ties between the UK and EU. The positive developments have boosted market sentiment towards the pound, with investors now pricing in a more stable and predictable UK-EU relationship. However, the reaction may be tempered by concerns over the long-term impact on UK sovereignty and regulatory autonomy. Traders will closely monitor the details of the agreement and any potential opposition from hardline Brexiteers. GBP/USD faces immediate resistance at 1.2520, with a break above opening the door for a test of the 1.2600 handle.
GBPUSD
EURGBP
GBPJPY
GBPCHF
GBPAUD
GBPCAD
GBPNZD
Sentiment:
Very Positive
Source: Finnhub
The article discussing the legality of President Trump accepting an airplane gift from Qatar does not contain any relevant information for forex market analysis. It does not mention any specific currency pairs, economic indicators, or market-moving events. The topic is primarily focused on U.S. political and legal issues surrounding the acceptance of foreign gifts by the president.
Sentiment:
Neutral
Source: Finnhub
In the latest forex industry developments, the CFTC has been penalized in a case involving the 'My Forex Funds' scheme, underscoring the regulator's oversight responsibilities. Meanwhile, renowned investor Warren Buffett has significantly reduced his stake in Brazilian digital bank Nubank, potentially influencing market sentiment. The forex trading landscape continues to evolve, with cryptocurrency trading now becoming a standard feature in many FX platforms, reflecting the growing intersection of traditional and digital assets. In corporate news, social trading platform eToro has soared in its Nasdaq debut following a SPAC merger, showcasing the appetite for innovative fintech offerings. Additionally, financial services firm StoneX is expanding its operations, likely aiming to capture a larger share of the competitive forex market. Traders should closely monitor these developments for potential implications on market dynamics and regulatory environment.
EURUSD
Sentiment:
Neutral
Source: Marketaux