USD/CNY trading remains volatile as markets digest Trump's plans to invoke emergency powers for fast-tracking domestic critical minerals production, potentially escalating US-China trade tensions. The move would bypass congressional approval requirements for projects exceeding $50 million and eliminate strict delivery timelines, mirroring Biden's COVID-19 emergency waivers. Despite these measures, experts caution that the US will remain dependent on China for critical minerals in the near term, with domestic production expansion requiring 5-10 years to materialize. The announcement adds to existing trade uncertainties, with traders monitoring potential retaliatory measures from Beijing. Technical levels show USD/CNY testing resistance near 7.2500, while support holds at 7.2200. The development could strengthen the dollar against commodity currencies but may face headwinds if China responds with currency depreciation or trade restrictions, creating additional volatility in Asian forex markets.
USDCNY
Sentiment:
Neutral
Source: Finnhub
The US dollar has come under pressure across major pairs as markets digest the White House announcement of significantly increased steel tariffs effective June 4, 2025. The new tariffs will double from 25% to 50% for all countries except the UK, which maintains its 25% rate. This protectionist move has raised concerns about potential retaliatory measures and global trade disruptions, weighing on USD sentiment. Currency pairs like EUR/USD and GBP/USD are expected to see upward pressure as traders price in the inflationary impact of higher import costs on the US economy. The selective exemption for UK steel suggests potential diplomatic considerations that could further strengthen GBP/USD. Technical levels show USD index testing support at 104.50, with a break below potentially accelerating dollar weakness. Traders should monitor Asian and European market reactions for further directional cues as the implementation date approaches.
EURUSD
GBPUSD
USDJPY
Sentiment:
Negative
Source: Finnhub
USD/JPY surged 109 pips to 143.78, marking a full cent gain as strong US economic data reinforced dollar bullishness. The pair's sharp rally reflects growing confidence in US economic resilience, with recent data pointing to sustained growth momentum that could keep the Federal Reserve hawkish. Market participants are reassessing rate differential expectations between the Fed and Bank of Japan, with the BoJ maintaining its ultra-loose monetary policy stance. Technical indicators show USD/JPY breaking above key resistance at 143.00, opening the path toward 144.50. The 142.70 level now acts as immediate support. Traders should monitor upcoming US employment and inflation data, which could further accelerate the pair's upward trajectory. The widening yield differential between US Treasuries and JGBs continues to support USD/JPY appreciation, with the 10-year spread remaining near multi-month highs.
USDJPY
Sentiment:
Very Positive
Source: Finnhub
EUR/USD maintained its bullish stance despite softer eurozone inflation data, trading firmly above key support levels. The pair's resilience suggests underlying euro strength, with markets looking past temporary inflation moderation. Recent CPI figures showed eurozone inflation easing more than expected, yet the single currency found support from improved risk sentiment and technical factors. The US Dollar Index (DXY) faced selling pressure, providing additional tailwind for EUR/USD. Key resistance sits at 1.0950, while the 1.0880 level offers immediate support. Market participants are weighing the European Central Bank's likely response to cooling inflation against the Federal Reserve's data-dependent stance. Technical momentum indicators remain constructive, with the pair trading above its 50-day moving average. Traders should watch for any shifts in ECB communication regarding the pace of future rate adjustments, which could impact the pair's medium-term trajectory.
EURUSD
Sentiment:
Positive
Source: Marketaux
The US Dollar Index (DXY) declined 0.2% to 104.35 following disappointing April factory orders data that came in at -3.7%, worse than the -3.1% forecast. The miss adds to concerns about US manufacturing weakness, with durable goods orders confirming a sharp -6.3% decline. Ex-transportation orders showed marginal softness at -0.5% versus -0.4% previously, while nondefense capital goods excluding aircraft fell -1.5%, indicating reduced business investment. The data reinforces the manufacturing sector's struggles amid high interest rates and weakening demand. Technical analysis shows DXY testing support at 104.30, with resistance at 104.80. Major pairs like EUR/USD and GBP/USD gained ground against the dollar, rising 0.15% and 0.18% respectively. Traders are now focusing on upcoming ISM Services PMI data for further direction on the dollar's trajectory.
DXY
EURUSD
GBPUSD
Sentiment:
Negative
Source: Finnhub
The Dollar Index (DXY) rebounded 0.4% to 105.20 during the week ended May 30, driven by legal uncertainty surrounding President Trump's reciprocal tariff powers. Conflicting court rulings have created volatility in currency markets as traders assess potential trade policy impacts. The dollar strengthened against major pairs, with EUR/USD falling 0.35% to 1.0780 and USD/JPY rising 0.5% to 157.40. Market participants are pricing in both the inflationary effects of potential tariffs and their impact on global trade flows. The legal whiplash has increased safe-haven demand for dollars, despite ongoing concerns about US fiscal deficits. Technical indicators show DXY breaking above its 50-day moving average at 105.00, with next resistance at 105.50. Traders should monitor further legal developments and any executive branch responses that could affect trade policy implementation.
DXY
EURUSD
USDJPY
Sentiment:
Positive
Source: Marketaux
The US Dollar Index (DXY) is consolidating near 104.80 levels, creating mixed conditions for precious metals pairs. Gold (XAU/USD) has found support at $2,315 per ounce, showing resilience despite dollar strength, while silver (XAG/USD) trades volatile around $30.50. The dollar's consolidation phase reflects balanced forces between hawkish Fed expectations and global growth concerns. Technical analysis reveals DXY facing resistance at 105.00, with support established at 104.50. Gold's inverse correlation with the dollar has weakened recently, as geopolitical tensions and central bank buying provide underlying support. Silver shows more sensitivity to dollar movements, with industrial demand concerns weighing on prices. Traders should watch for a decisive break in DXY above 105.00 or below 104.50 to determine the next directional move in precious metals versus the dollar.
DXY
XAUUSD
XAGUSD
Sentiment:
Positive
Source: Marketaux
EUR/USD declined 0.2% to 1.0825 as growing expectations for European Central Bank rate cuts weigh on the euro. Mixed sentiment across global markets reflects ongoing trade tensions and diverging monetary policy outlooks. Asian and European equity markets showed scattered performance, with the Nikkei down 0.3% while the DAX gained 0.2%. The ECB is increasingly expected to cut rates at its upcoming meeting, with markets pricing in a 75% probability of a 25 basis point reduction. This contrasts with the Federal Reserve's more hawkish stance, supporting dollar strength. EUR/USD faces immediate resistance at 1.0850, with support at 1.0800. Cross pairs like EUR/GBP fell 0.15% to 0.8540 as the pound outperformed. Traders should monitor Thursday's ECB meeting minutes for further policy clues that could accelerate euro weakness.
EURUSD
EURGBP
Sentiment:
Negative
Source: Marketaux
Currency markets face renewed uncertainty following Trump's defensive response to questions about his trade policy stance, particularly the 'TACO trade' concept suggesting he 'Always Chickens Out' on threats. The former president's sharp reaction to reporter questioning has traders reassessing the reliability of the so-called 'Trump put' - the market assumption that rhetoric rarely translates to extreme action. This development raises concerns about potential trade-related volatility in major forex pairs, especially those involving Mexico and China. USD/MXN and USD/CNH could see increased volatility as markets price in policy uncertainty. Historical patterns show Trump's trade announcements often trigger 2-3% moves in affected currency pairs. Traders are advised to monitor political headlines closely and consider hedging strategies for trade-sensitive positions. The timing of any policy announcements could coincide with thin summer liquidity, potentially amplifying market reactions.
USDMXN
USDCNH
Sentiment:
Negative
Source: Marketaux
The Dollar Index (DXY) ticked 0.1% higher to 104.65 as markets balanced President Trump's renewed tariff threats against disappointing US economic data. The ISM Manufacturing PMI fell to contractionary levels, while construction spending dropped unexpectedly. Despite the weak data, the dollar found support from safe-haven flows amid trade uncertainty. Asian markets showed mixed performance with the Shanghai Composite down 0.4%, while European indices traded flat. EUR/USD slipped 0.1% to 1.0830, while USD/JPY held steady at 156.80. The conflicting signals between protectionist policies and economic weakness create a challenging environment for traders. Technical analysis shows DXY testing resistance at 104.75, with support at 104.40. Market focus shifts to upcoming Non-Farm Payrolls data, which could provide clearer direction for dollar pairs amid the current uncertainty.
DXY
EURUSD
USDJPY
Sentiment:
Neutral
Source: Marketaux
Foreign exchange trading volumes experienced a significant decline in May 2025 across institutional platforms including Cboe, FXSpotStream, TFX, and Euronext. The sharp contraction follows a period of relative market stability, suggesting reduced institutional participation and potentially lower volatility in major currency pairs. Market participants attribute the volume crash to several factors including seasonal effects, reduced corporate hedging activity, and uncertainty surrounding central bank policy divergence. The decline in liquidity may lead to wider bid-ask spreads and increased slippage for traders, particularly during off-peak hours. Technical indicators suggest major pairs like EUR/USD and GBP/USD have been trading in tighter ranges, contributing to decreased speculative interest. This volume reduction could persist into June unless significant economic catalysts or policy shifts emerge to reignite market activity.
EURUSD
GBPUSD
Sentiment:
Negative
Source: Marketaux
Gold prices have rallied sharply as renewed tariff threats from former President Trump increased market expectations for Federal Reserve rate cuts. The precious metal's surge reflects growing safe-haven demand amid trade policy uncertainty, weakening the US dollar index. EUR/USD has benefited from dollar weakness, while GBP/USD remains pressured by domestic UK concerns. The potential for escalating trade tensions has shifted market sentiment toward risk-off positioning, with traders pricing in a higher probability of Fed easing to counter economic headwinds. Gold's technical breakout above key resistance levels suggests further upside potential, particularly if geopolitical tensions intensify. The correlation between gold strength and dollar weakness remains intact, with major currency pairs likely to experience increased volatility as markets digest trade policy implications and adjust rate cut expectations for upcoming FOMC meetings.
EURUSD
GBPUSD
Sentiment:
Negative
Source: Marketaux
The US dollar index continues to hold elevated levels, with EUR/USD trading near recent lows while EUR/PLN shows relative stability. Current dollar strength reflects market positioning ahead of crucial JOLTS job openings data, which could significantly impact Fed policy expectations. If JOLTS data shows softening labor market conditions, the dollar's risk premium may fade rapidly, potentially triggering a reversal in major pairs. EUR/USD faces immediate resistance at 1.0850, with support holding at 1.0800. The dollar index futures indicate consolidation near 105.50, suggesting traders await fresh catalysts. A weaker-than-expected JOLTS reading could push EUR/USD toward 1.0900, while strong data might extend dollar gains. Market positioning remains tilted toward dollar longs, creating potential for a sharp squeeze if employment indicators disappoint expectations.
EURUSD
EURPLN
Sentiment:
Positive
Source: Marketaux
USD/JPY is experiencing heightened volatility as divergent market signals create uncertainty for traders. The pair has oscillated between 155.20 and 156.80 as conflicting forces from US equity strength, led by NVIDIA and S&P 500 gains, clash with traditional safe-haven yen demand. Current price action at 156.00 reflects this market indecision, with technical indicators showing mixed signals. The Bank of Japan's potential policy shift remains a key factor, while Fed rate cut speculation adds complexity to the pair's outlook. Support has formed at 155.50, coinciding with the 50-day moving average, while resistance at 156.80 caps upside attempts. Traders should monitor correlation with US equity indices, as any sharp correction in tech stocks could trigger rapid yen appreciation. Near-term direction likely depends on resolution of these cross-currents.
USDJPY
Sentiment:
Negative
Source: Marketaux
The US dollar has found temporary stability following yesterday's decline, though trade policy uncertainty continues to weigh on sentiment. With only 36 days remaining until President Trump's trade deal deadline, markets remain anxious about potential outcomes. The greenback's recent weakness reflects ongoing concerns about policy incoherence and conflicting signals from the administration. Legal challenges to reciprocal tariffs add another layer of complexity, with court battles potentially impacting implementation timelines. The dollar index (DXY) is struggling to maintain confidence levels as traders await clearer direction on trade negotiations. Technical indicators suggest the currency remains vulnerable to further downside if trade headlines turn negative. Near-term support for major USD pairs depends heavily on this week's trade-related developments, with resistance building at recent highs as uncertainty caps any meaningful recovery attempts.
DXY
Sentiment:
Negative
Source: Finnhub
USD/CHF is displaying a bullish falling wedge pattern on the daily chart, with support holding firm at 0.9050. This technical formation suggests potential for an upward breakout, targeting initial resistance at 0.9150. The pair has consolidated within this pattern for three weeks, with decreasing volume indicating compression before a directional move. EUR/USD weakness and USD/JPY strength support the dollar's technical setup against the Swiss franc. AUD/USD remains under pressure at 0.6400, reinforcing broad dollar strength themes. The falling wedge's apex approaches near 0.9080, making the next few sessions critical for pattern completion. A breakout above 0.9120 would confirm bullish continuation toward 0.9200, while failure below 0.9050 would invalidate the setup. Risk-reward favors long positions with stops below wedge support.
USDCHF
EURUSD
USDJPY
AUDUSD
Sentiment:
Positive
Source: Marketaux
USD/JPY has jumped 0.8% (120 pips) to 156.20 following dovish comments from Bank of Japan Governor Ueda, who emphasized that rate hikes would only occur if economic and price outlooks materialize as expected. The yen's sharp decline was exacerbated by disappointing Chinese manufacturing data, with the Caixin PMI falling to 48.3 in May, indicating continued contraction. Meanwhile, RBA minutes revealed no immediate plans for expansionary policy, keeping AUD/JPY elevated. The PBOC set the USD/CNY reference rate at 7.1869, reflecting regional currency weakness. Technical analysis shows USD/JPY breaking above the 155.50 resistance level, with next targets at 156.80 and 157.00. The combination of BOJ's patient stance and global growth concerns suggests continued yen weakness, particularly if upcoming US data reinforces dollar strength.
USDJPY
AUDJPY
USDCNY
Sentiment:
Very Negative
Source: Finnhub
USD/JPY has spiked 0.9% (135 pips) to 156.35 after Bank of Japan Governor Ueda reiterated that interest rate increases would only materialize if economic conditions and inflation projections align with forecasts. This conditional approach contrasts sharply with other major central banks' more hawkish stances, accelerating yen selling across the board. The governor's comments suggest the BOJ remains far from normalizing policy despite persistent inflation above target. Market positioning data shows speculative short yen positions increasing to multi-month highs. Immediate resistance lies at 156.50, coinciding with the April high, while support has shifted to 155.00. The widening interest rate differential between Japan and other major economies continues to pressure the yen, with traders now eyeing the 157.00 psychological level as the next major target if dollar strength persists.
USDJPY
Sentiment:
Very Negative
Source: Marketaux
Crude oil futures settled at $62.52 after failing to break through key technical resistance, with implications for commodity-linked currencies. The session saw oil prices reach a high of $63.84 before retreating from the critical swing area between $63.52-$64.14, unable to breach the 38.2% Fibonacci retracement at $64.88 of the 2025 decline from January highs. The rejection at technical resistance suggests weakening momentum in energy markets, which typically pressures the Canadian dollar and supports risk-off sentiment. Key support levels have emerged at the converging 100 and 200-hour moving averages near $61.59-$61.52. The failure to sustain gains above $63.50 indicates potential further downside for oil prices, which could weigh on CAD pairs while benefiting safe-haven currencies. Traders should monitor these technical levels closely as oil price movements often correlate with broader risk sentiment in forex markets.
USDCAD
Sentiment:
Negative
Source: Finnhub
The US dollar index fell 0.5% to 104.20 as markets reacted nervously to escalating US-China trade tensions. China's April export restrictions on seven rare earth metals, crucial for technology manufacturing, have intensified concerns about supply chain disruptions. The postponement of the Trump-Xi call originally scheduled for this week added to market uncertainty, pushing investors toward safe-haven currencies. The Japanese yen strengthened 0.8% against the dollar to 154.30, while the Swiss franc gained 0.6%. Gold surged 1.2% to $2,045 per ounce as risk-off sentiment dominated trading. Technical indicators show USD/JPY breaking below the 155.00 support level, with next support at 153.50. The dollar's weakness could accelerate if diplomatic talks fail to materialize this week, potentially testing the 103.50 level on the DXY. Traders should monitor any developments in US-China communications and prepare for heightened volatility across major pairs.
USDJPY
USDCHF
Sentiment:
Very Negative
Source: Finnhub