Risk-sensitive currencies gained ground during Asian and European trading sessions as equity markets advanced broadly, with major indices posting gains between 0.8% and 1.5%. The positive sentiment has supported AUD/USD and NZD/USD, which climbed 0.4% and 0.3% respectively. Oil prices reached 7-week highs, with Brent crude touching $84.50 per barrel on supply concerns and improving Chinese demand indicators. The commodity rally has particularly benefited CAD, with USD/CAD retreating from recent highs near 1.3650. Asian currencies also strengthened, with USD/JPY consolidating near 157.50 despite the yen's diminishing safe-haven appeal. The risk-on environment has pressured traditional safe havens like CHF and USD, while emerging market currencies showed resilience. Traders are monitoring whether this positive momentum can sustain through the US session, particularly with key economic data releases scheduled later today.
AUDUSD
NZDUSD
USDCAD
USDJPY
Sentiment:
Positive
Source: Marketaux
Traditional forex and CFD brokers are increasingly integrating cryptocurrency trading into their platforms, responding to growing client demand and evolving market dynamics. This convergence represents a significant shift in the industry landscape, as established brokers seek to capture market share from crypto-native exchanges while leveraging their existing regulatory frameworks and client bases. The integration trend has accelerated as regulatory clarity improves in major jurisdictions, though compliance challenges remain significant. Brokers report that crypto CFDs now account for 15-25% of trading volumes on some platforms, with Bitcoin and Ethereum pairs against major fiat currencies being the most popular. This development impacts traditional forex pairs as correlation patterns emerge between crypto volatility and safe-haven currencies like JPY and CHF. Traders should monitor regulatory developments closely, as policy changes could significantly affect market access and trading conditions.
BTCUSD
ETHUSD
USDJPY
USDCHF
Sentiment:
Positive
Source: Marketaux
USD/JPY has continued its upward trajectory, climbing 0.6% to trade above 157.50 as the Japanese yen loses its traditional safe-haven appeal amid improving global risk sentiment. The pair has gained over 250 pips this week, supported by widening US-Japan yield differentials with the 10-year spread expanding to 365 basis points. Market participants are increasingly dismissive of Bank of Japan intervention risks, despite verbal warnings from Japanese officials about excessive currency moves. Technical analysis shows the pair breaking above the 157.00 psychological resistance, with momentum indicators suggesting further upside potential toward 158.50. The yen's weakness extends across the board, with EUR/JPY and GBP/JPY also posting significant gains. Traders should monitor any shift in risk sentiment or unexpected BoJ actions that could trigger sharp reversals. The next major resistance lies at 158.00, coinciding with the May 2024 high.
USDJPY
EURJPY
GBPJPY
Sentiment:
Very Positive
Source: Marketaux
EUR/USD is experiencing downward pressure following the release of ECB's wage tracker data, which revealed negotiated wages fell to 4.6% in Q1 2025 from 5.4% in Q4 2024. The annual reading dropped significantly to below 4.7% from the previous year's levels, marking a substantial deceleration in wage growth across the eurozone. This cooling wage inflation directly supports the ECB's dovish monetary policy stance and reinforces their narrative of moderating inflationary pressures. The data strengthens market expectations for continued ECB rate cuts, potentially widening the policy divergence with other major central banks. Technical indicators suggest EUR/USD could test support at 1.0750 if the downward momentum persists, with resistance forming around 1.0850. Traders should monitor upcoming ECB communications for further policy guidance, as sustained wage moderation could accelerate the euro's weakness against the dollar.
EURUSD
Sentiment:
Negative
Source: Finnhub
USD/JPY faces downward pressure as the yen's recent strength raises concerns about Japan's deflation risks, potentially limiting Bank of Japan's policy normalization plans. The pair has declined 1.2% over the past week, testing support near 155.50 as traders reassess BoJ's capacity to tighten policy amid renewed deflationary pressures. Japan's 10-year yield differential with US Treasuries has narrowed to 340 basis points, the tightest spread in three months, reducing the carry trade appeal. The stronger yen poses challenges for Japanese exporters and could undermine the BoJ's efforts to achieve sustainable 2% inflation. Technical analysis shows USD/JPY breaking below the 50-day moving average at 156.20, with next support at 154.80. Market positioning suggests further yen strength if upcoming Japanese CPI data confirms deflationary pressures, though any dovish BoJ signals could quickly reverse gains.
USDJPY
Sentiment:
Negative
Source: Marketaux
Currency markets are positioning cautiously ahead of US CPI data, with traders weighing potential inflationary impacts from proposed Trump administration tariffs. The dollar index consolidated near 105.80 as markets anticipate inflation surprises that could reshape Federal Reserve policy expectations. Speculation about renewed trade tensions has increased volatility in commodity-linked currencies, with oil and natural gas futures showing significant moves that could feed into inflation metrics. Market consensus expects core CPI to remain elevated at 3.4% year-over-year, but tariff implementation could push readings higher in coming months. GBP/USD traded defensively around 1.2750 as traders balanced UK economic concerns against US inflation risks. The potential for upside inflation surprises has shifted rate cut expectations, with markets now pricing only two Fed cuts for 2025. Technical levels show dollar pairs at critical junctures ahead of the data release.
GBPUSD
EURUSD
USDJPY
USDCAD
AUDUSD
Sentiment:
Neutral
Source: Marketaux
GBP/USD pulled back 0.4% to 1.2720 after reaching weekly highs near 1.2780, as disappointing UK employment figures dampened sterling sentiment. UK jobless claims increased by 23,000 in May, significantly above the expected 8,000, while the unemployment rate edged higher to 4.3%. Wage growth also showed signs of cooling, with average earnings excluding bonuses rising 5.9% year-over-year, down from 6.1% previously. The weaker labor market data reduces pressure on the Bank of England to maintain restrictive monetary policy, with markets now pricing a 65% chance of a rate cut by September. Technical analysis shows GBP/USD breaking below the ascending trendline from May lows, with immediate support at 1.2700 and resistance at 1.2750. The dollar index strengthened marginally as traders rotated back into USD ahead of upcoming US inflation data.
GBPUSD
Sentiment:
Negative
Source: Marketaux
The dollar index remained largely unchanged at 105.20 during early European hours, showing minimal movement following two days of US-China trade discussions. Chinese Vice Commerce Minister Li Chenggang characterized the talks as rational and candid, while US officials indicated a preliminary framework agreement was reached, pending approval for implementation. The lack of concrete details or breakthrough announcements has left forex markets in a holding pattern, with USD pairs trading within tight ranges. EUR/USD hovers near 1.0750, while USD/JPY consolidates around 156.50. The measured response reflects trader caution, as previous trade negotiations have often yielded limited lasting impact. Near-term dollar direction will likely depend on upcoming US economic data releases and any follow-through on the trade framework. Technical indicators suggest continued range-bound trading for major USD pairs absent significant catalysts.
EURUSD
USDJPY
DXY
Sentiment:
Very Positive
Source: Finnhub
AUD/USD is experiencing downward pressure as China announces expectations for a 4% decline in steel production for 2025, extending the contraction trend that began in 2021. The reduction reflects Beijing's strategic shift away from infrastructure-heavy development and commitment to carbon emission reduction policies. As China represents Australia's largest trading partner and steel production is a key driver of iron ore demand, this development weighs heavily on the Australian dollar. Chinese steel output has been under government-imposed growth caps since 2021 as part of environmental initiatives. The commodity-linked AUD typically correlates strongly with Chinese industrial activity and raw material demand. Technical indicators suggest AUD/USD may test support levels near 0.6450 if bearish momentum continues. Traders should monitor additional Chinese economic data and any policy adjustments from the Reserve Bank of Australia that might offset commodity-related weakness.
AUDUSD
Sentiment:
Negative
Source: Finnhub
USD/MXN has retreated 0.8% (140 pips) to 20.250 following reports that the United States and Mexico are approaching a deal to eliminate President Trump's 50% tariffs on steel imports up to specified volumes. The potential agreement signals improving trade relations between the two nations, supporting the Mexican peso's strength against the dollar. Market participants view this development as a significant de-escalation in trade tensions that have weighed on the peso throughout recent months. The tariff removal would benefit Mexican steel exporters and potentially boost broader economic confidence in Mexico's manufacturing sector. Technical indicators show USD/MXN breaking below the 20.400 support level, with further downside potential toward 20.100 if the agreement is finalized. Traders should monitor official announcements from both governments, as confirmation could accelerate peso gains while failure to reach terms might reverse current momentum.
USDMXN
Sentiment:
Negative
Source: Finnhub
The US dollar index (DXY) fell 0.15% following a lackluster $58 billion 3-year Treasury note auction that yielded 3.972%, above the when-issued level of 3.968%. The 0.4 basis point tail indicates weaker-than-expected demand from investors, contrasting with the 6-month average performance. This soft auction result suggests reduced appetite for US government debt, potentially signaling concerns about fiscal sustainability or expectations of higher future yields. The disappointing auction adds to recent dollar weakness as markets reassess Federal Reserve rate expectations for 2025. Technical indicators show the DXY testing support at 104.50, with immediate resistance at 105.20. Treasury yield movements typically correlate strongly with dollar strength, and today's auction results may pressure USD pairs in the near term. Traders should monitor upcoming Treasury auctions and Fed communications for further directional cues on dollar positioning.
DXY
EURUSD
GBPUSD
USDJPY
Sentiment:
Negative
Source: Finnhub
EUR/USD gained momentum following Goldman Sachs' upward revision of their currency pair forecasts, with the euro strengthening against the dollar. The investment bank cites US equities falling 8% year-to-date for EUR-based investors, making European stocks relatively more attractive despite appearing flat in USD terms. The shift reflects diminishing foreign appetite for US assets amid confirmed slowdown in American economic activity. This reallocation of capital from US to European markets is creating upward pressure on EUR/USD as institutional investors adjust portfolios. Technical indicators suggest further euro strength as the pair breaks above key resistance levels. The changing investment landscape indicates sustained pressure on the dollar as global fund flows favor European assets. Traders should monitor upcoming US economic releases for confirmation of the slowdown trend, which could accelerate EUR/USD gains toward 1.1000 psychological resistance.
EURUSD
Sentiment:
Very Positive
Source: Finnhub
USD/CAD declined below the 1.3700 support level as markets price in the possibility of a new trade agreement between Canada and the United States this week. The Canadian dollar strengthened against its US counterpart amid optimism that bilateral trade negotiations could yield positive results, reducing uncertainty for cross-border commerce. The move represents a significant break of technical support, with the pair now testing levels not seen in recent sessions. Trade deal prospects are bolstering CAD sentiment as investors anticipate reduced tariff risks and improved economic cooperation between the neighboring countries. The 1.3700 level now acts as resistance, with further downside potential toward 1.3650 if trade talks progress favorably. Traders should closely monitor official announcements regarding trade negotiations, as any concrete agreement could trigger additional Canadian dollar strength. Market positioning suggests continued USD/CAD weakness barring any negative surprises in negotiations.
USDCAD
Sentiment:
Negative
Source: Marketaux
The US dollar gained ground against major currencies as global markets displayed mixed performance amid economic uncertainty. US markets closed with modest gains in S&P 500 and Nasdaq while the Dow remained flat, weighed down by losses in McDonald's and Travelers. Economic data revealed increases in wholesale inventories alongside declining inflation expectations, supporting dollar strength. Asian markets posted mostly positive sessions while European indices traded lower, creating divergent regional trends that favored safe-haven dollar demand. The US Dollar Index pushed higher as investors sought stability amid conflicting global economic signals. Currency markets are reacting to the combination of resilient US data and international market volatility. Near-term dollar strength appears likely as traders await clearer direction from upcoming economic releases and central bank communications across major economies.
DXY
Sentiment:
Positive
Source: Marketaux
Crude oil prices continue their upward trajectory, with WTI advancing 1.2% to $73.45 per barrel, as markets digest improving global growth prospects and dismiss recent supply-side concerns. The rally has weighed on USD/CAD, pushing the pair down 0.4% to 1.3580 as the commodity-linked Canadian dollar strengthens. Markets are increasingly optimistic about demand recovery, supported by the ongoing global easing cycle, anticipated Trump administration tax cuts, and diminishing trade war concerns. The shift from supply-focused to demand-driven pricing suggests sustained oil strength ahead. Technical indicators show WTI breaking above the $73 resistance level, targeting $75.00 next. For USD/CAD, immediate support lies at 1.3550, with a break below potentially accelerating losses toward 1.3500. Traders should monitor upcoming Chinese economic data and OPEC+ production decisions for further directional cues.
USDCAD
Sentiment:
Very Positive
Source: Finnhub
USD/JPY hovers near critical support levels as traders position ahead of the Bank of Japan's upcoming rate decision, with expectations mounting for potential policy hold that could spark significant volatility. The pair remains under pressure as market participants weigh the implications of Japan's monetary policy stance against ongoing US dollar dynamics. Technical analysis indicates the pair is testing major support zones that have held throughout recent trading sessions. A BoJ decision to maintain current rates could trigger sharp yen movements as traders reassess carry trade positions. The setup suggests heightened volatility potential, with key support levels acting as crucial decision points for directional moves. Traders should prepare for increased market activity around the BoJ announcement, with potential for rapid price swings in either direction. Risk management becomes critical as USD/JPY approaches this significant monetary policy event.
USDJPY
Sentiment:
Neutral
Source: Marketaux
Gold prices surged 0.8% to $2,045 per ounce during Tuesday's session, finding support from improving US-China trade relations and a softer US dollar. The DXY index retreated 0.3% to 104.20 as risk appetite improved following reports of constructive dialogue between Washington and Beijing officials. Market participants are scaling back safe-haven dollar positions, benefiting gold despite rising Treasury yields. The precious metal has broken above the key $2,040 resistance level, with momentum indicators suggesting further upside potential. EUR/USD and GBP/USD also benefited from dollar weakness, advancing 0.4% and 0.5% respectively. Technical analysis shows gold targeting the $2,060 level, with support now established at $2,035. The improving geopolitical backdrop could continue supporting risk assets while maintaining gold's appeal as an inflation hedge amid ongoing global monetary easing.
XAUUSD
EURUSD
GBPUSD
Sentiment:
Positive
Source: Marketaux
Currency markets witnessed a notable return to carry trade strategies, with high-yielding currencies outperforming in quiet trading conditions. AUD/USD advanced 0.6% to 0.6580, while NZD/USD gained 0.5% to 0.6120, as investors sought yield differentials amid stable market conditions. EUR/USD edged 0.2% higher to 1.0520, while GBP/USD climbed 0.3% to 1.2650. The Japanese yen underperformed, with USD/JPY consolidating near 156.50 despite defending key support levels. Low volatility and improved risk sentiment have encouraged traders to re-establish carry positions, particularly favoring commodity currencies against funding currencies. Technical indicators suggest AUD/USD faces resistance at 0.6600, with momentum building for a potential break higher. Market participants await Wednesday's Australian employment data and Thursday's ECB meeting minutes for fresh directional catalysts.
AUDUSD
NZDUSD
EURUSD
GBPUSD
USDJPY
Sentiment:
Positive
Source: Marketaux
USD/JPY remains range-bound around 156.50, showing limited directional momentum as buyers continue defending key support zones. The pair has traded in a tight 40-pip range during the Asian session, with support at 156.20 proving resilient against selling pressure. Technical indicators suggest a neutral bias, with the 50-day moving average at 156.35 providing immediate support, while resistance caps gains at 156.80. Market participants remain cautious ahead of Friday's Bank of Japan policy meeting, where officials may signal concerns about yen weakness. The lack of clear direction reflects broader market indecision, with traders balancing US yield advantages against potential Japanese intervention risks. A decisive break below 156.20 could trigger stops toward 155.50, while clearing 156.80 resistance would target the 157.50 recent highs. Volatility remains subdued at 6.5%, suggesting consolidation may persist.
USDJPY
Sentiment:
Positive
Source: Marketaux
US dollar strength has paused as S&P 500 futures reversed from positive territory to flat ahead of the European market open, signaling reduced risk appetite. The shift in sentiment follows an initial advance in early Asian trading that quickly evaporated, suggesting uncertainty among investors. This reversal in equity futures typically correlates with dollar movements, as risk-off sentiment often supports the greenback as a safe haven. Without specific economic catalysts mentioned, the price action appears driven by technical factors and positioning adjustments ahead of the European session. Traders are likely exercising caution given the lack of major data releases, leading to choppy price action across major USD pairs. The flattening of futures after the initial dip indicates market indecision, which could result in range-bound trading for dollar pairs until clearer directional signals emerge from either European economic data or renewed momentum in US equity markets.
EURUSD
GBPUSD
USDJPY
USDCHF
AUDUSD
USDCAD
NZDUSD
Sentiment:
Neutral
Source: Marketaux