Forex News
Sky News Arabia, citing a Lebanese source, commented on the lack of progress in the current round of negotiations between the two sides in Washington.
Under current circumstances, a joint declaration of intent will be skipped. Still, if the ideas and proposals put forward reach a possible conclusion, a joint statement will be issued regarding the fourth round of talks.
The Lebanese delegation insisted on starting with a ceasefire ahead of beginning discussions. Worth noting that there’s no date set for new talks regarding the security track at the Pentagon.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.29% | 0.36% | 0.05% | 0.41% | 0.67% | 1.08% | 0.66% | |
| EUR | -0.29% | 0.06% | -0.22% | 0.12% | 0.38% | 0.77% | 0.38% | |
| GBP | -0.36% | -0.06% | -0.28% | 0.05% | 0.31% | 0.69% | 0.30% | |
| JPY | -0.05% | 0.22% | 0.28% | 0.33% | 0.59% | 0.95% | 0.58% | |
| CAD | -0.41% | -0.12% | -0.05% | -0.33% | 0.27% | 0.65% | 0.24% | |
| AUD | -0.67% | -0.38% | -0.31% | -0.59% | -0.27% | 0.38% | -0.05% | |
| NZD | -1.08% | -0.77% | -0.69% | -0.95% | -0.65% | -0.38% | -0.39% | |
| CHF | -0.66% | -0.38% | -0.30% | -0.58% | -0.24% | 0.05% | 0.39% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
OCBC’s FX Strategists Sim Moh Siong and Christopher Wong note that the CNY has gained 3.3% against the Dollar this year, outperforming Asian peers and strengthening on the CFETS basket. They attribute this to solid external demand and corporate FX conversion, with authorities tolerating further appreciation, though gains are expected to be measured and may slow near term during the dividend payment season.
Yuan strength seen as measured
"The CNY is up 3.3% year to date against the USD, outperforming Asian peers and shrugging off negative terms of trade from high oil prices."
"Strength is also evident in the CFETS basket, now nearing early-2025 highs."
"Key drivers remain solid external demand and increased corporate FX conversion."
"Authorities appear comfortable with further appreciation to support RMB internationalisation and ease undervaluation concerns."
"Currency gains should continue but remain measured given soft domestic demand and export dependence."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- Silver trades sideways within $73.00-$78.50 consolidation range.
- RSI points lower, confirming sellers remain firmly in control.
- Break below $73.00 exposes $71.79 and 200-day SMA.
Silver halts its advance and plunges over 2% on Wednesday amid growing speculation that a resumption of hostilities between the US and Iran—which exchanged fire overnight—increases the chances that major central banks will hike rates, a headwind for the non-yielding metal. The XAG/USD trades at $73.46 after peaking at nearly $75.30.
XAG/USD Price Forecast: Technical outlook
Silver continues to trade sideways within the $73.00-$78.50 range, except for reaching a four-week low of $71.79 on May 29. Price action shows that momentum is bearish, even though XAG/USD has been trading at the top/bottom of the 50-day Simple Moving Average (SMA) at $76.14, which is the first line of resistance for sellers if buyers intend to push prices higher.
The Relative Strength Index (RSI) shows that sellers are in charge, with the index pointing lower toward oversold territory.
On the downside, the first support is the $73.00, followed by the May 29 low at $71.79. Below this area sits the 200-day SMA at $67.47.
For a bullish reversal, Silver must clear the 50-day SMA and the May 26 daily high of $78.57 before challenging the 100-day SMA at $81.03.
XAG/USD Price Chart – Daily
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
- US-Iran strikes near Hormuz lift Oil and US Dollar demand.
- ADP, JOLTS and ISM data show resilient US conditions.
- Williams says Fed policy is right ahead of Beige Book release.
Gold (XAU/USD) price slumps over 1% on Wednesday, losing for the second day in the week amid fears that hostilities between the US and Iran may escalate, pushing energy prices higher and the US Dollar as well.
Geopolitics weigh on Gold, as Oil shock revives inflation fears
Tensions in the Middle East are high after Iran and the US exchanged fire near the Strait of Hormuz. The US CENTCOM carried out “defensive strikes” against Iran’s missile launchers and boats poised to lay mines. On the other hand, Tehran attacked US bases in Gulf States like Kuwait, the United Arab Emirates (UAE) and Saudi Arabia.
Oil prices rose as a possible resumption of negotiations seems far after Iran’s Fars news agency reported that talks had stalled, even though US President Donald Trump denied it.
This raised concerns about Oil supply disruptions, which are threatening to trigger a second wave of inflation and force major central banks to raise interest rates.
West Texas Intermediate (WTI), the US crude Oil benchmark, posted gains of more than 2.50%, a tailwind for the Greenback. The US Dollar Index (DXY), which tracks the performance of the buck’s value against six currencies, is up 0.32% at 99.53
US data to prevent the Fed from cutting
US jobs data indicates a strong labor market, with May's ADP National Employment increasing by 122K, surpassing the forecast of 117K. This, along with Tuesday’s JOLTS report showing a rise in job openings, paints a resilient picture of US employment ahead of the release of Nonfarm Payroll figures, which are expected to increase by 85K.
Recently, the ISM Services PMI rose from 53.6 to 54.5 in May as businesses ordered in anticipation of higher prices. The Prices Paid component increased from 70.7 to 71.3, showing the energy shock is spreading to the services sector.
In the meantime, the New York Fed President John Williams said that monetary policy “is exactly in the right place,” adding that he doesn’t “see any need to raise or lower interest rates right now.”
Ahead traders will eye Dallas Fed President Lorie Logan speech, along with the release of the Fed’s Beige Book, ahead of the June 16-17 meeting.
XAU/USD technical outlook: Gold’s downtrend continues below the 20-day SMA
Gold extends its downtrend, reaching four-day lows at $4,426, poised to hit $4,400 sooner than $4,500. Momentum shifted mildly bearish, with price action printing successive series of lower highs and lows, closing near the 200-day Simple Moving Average (SMA) of $4,422, which, once surpassed, would pave the way for further losses.
The Relative Strength Index (RSI) is bearish, pointing downwards, confirming that sellers are stepping in to drive Gold’s prices lower.
If XAU/USD clears the 200-day SMA, look for a test of $4,400. Below this area lies the current yearly low of $4,098, the March 23 daily low.
Upwards, Gold must reclaim $4,500 before testing the 20-day SMA at $4,573. Above this area is the 50-day SMA at $4,626, followed by the 100-day SMA at $4,794.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
- Crude Oil Prices near two-week highs amid renewed tensions in the Middle East.
- Recent data show that Canada entered a technical recession after a negative Q1 GDP reading.
- USD/CAD flirts with 1.3900 and trades at its highest in two months.
The Canadian Dollar (CAD) trades with a heavy tone against its American counterpart, as the US Dollar (USD) gathers strength from renewed Middle East concerns. The USD/CAD pair nears 1.3900, its highest in two months.
The USD is back in fashion in a risk-averse environment, triggered by fresh war-related headlines. Concerns returned on news indicating that Iran is dropping attacks on neighboring countries while facing the United States (US) response. United States (US) President Donald Trump tried to pour cold water on the matter, stating that Iran agreed not to have nuclear weapons, but his words fell on stony ground.
The same war is driving Oil prices sharply up, with the barrel of West Texas Intermediate (WTI) changing hands at $94. Given that Canada is the 4th-largest oil producer in the world, higher Oil prices usually strengthen the CAD.
What’s going on?
Canada entered a technical recession after Real Gross Domestic Product (GDP) fell by 0.1% in the first quarter of 2026, following a revised 1% decline in the last quarter of 2025. By definition, a technical recession is defined by two successive quarters of negative economic growth. Three of the last four quarters in Canada have now posted negative real GDP growth.
Does it mean the economy is actually in trouble? The answer is no, not yet. But yeah, the figures are worrisome and require immediate attention. But what kind of “attention” could the matter receive in such an uncertain environment? With the war ongoing and the continuously delayed promise of a peace deal, there’s no foreseeable near-term solution.
USD/CAD Technical Outlook
The near-term picture for USD/CAD is bullish, as the 4-hour chart shows the pair trading above the 20-, 100-, and 200-period Simple Moving Averages (SMAs), with the short-term 20-period SMA at 1.3836 reinforcing nearby trend support. The same chart shows that the Momentum indicator stays well into positive territory, albeit losing upward strength. Finally, the Relative Strength Index (RSI) index hovers in overbought territory near 74, hinting that while the advance is strong, upside risk is increasingly exposed to corrective pullbacks.
As previously noted, initial support is seen at the 20-period SMA around 1.3836, where a shallow dip could find buyers and keep the immediate uptrend intact. A deeper retracement would expose the 100-period SMA near 1.3782 before the broader bullish structure is tested closer to the 200-period SMA at 1.3716. Once above the psychological 1.3900 mark, the pair can extend its advance towards the 1.3950 price zone, while further advances expose 1.3966, the yearly high posted in March.
(The technical analysis of this story was written with the help of an AI tool.)
Scotiabank strategists Shaun Osborne and Eric Theoret note the Japanese Yen (JPY) is marginally stronger, with USD/JPY stabilizing just below the key 160 resistance area. They stress that intervention risk remains elevated as the pair approaches this psychologically important level. Markets are pricing meaningful Bank of Japan (BoJ) tightening by December, while RSI momentum stays bullish and the bank sees limited additional resistance above 160.
Yen steadies but intervention risk elevated
"The yen is up a marginal 0.1% vs. the USD and showing signs of stabilization just above key technical support (USD/JPY resistance at 160)."
"Near-term risk remains centered on official currency management (intervention) as USD/JPY approaches the psychologically important 160 level."
"Comments from BoJ Gov. Ueda have been hawkish, signaling that the policy rate was not in the neutral range."
"Markets are pricing about 22bps of tightening for the meeting, and nearly 50bps by December."
"For USD/JPY, we note the bullish momentum in the RSI and see little in terms of additional near-term resistance above 160."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
MUFG’s Lloyd Chan highlights that Indonesia is undergoing a structural regime shift as the state moves toward direct control of key commodity exports via Danantara Sumberdaya Indonesia. The report stresses high near-term implementation risks for the Rupiah, but notes that over the medium term, effective execution could bolster external stability while poor execution could weigh on the currency.
State control raises Rupiah risk profile
"A structural regime shift is underway. Indonesia is transitioning toward a state-controlled commodity export system under Danantara Sumberdaya Indonesia (DSI), a new subsidiary of the Danantara sovereign wealth fund. Unlike global precedents typically focused on a single commodity resource, Indonesia is attempting to apply this model across multiple key commodities such as coal, palm oil, and ferroalloys, making the scope both unique and execution intensive."
"Implementation risks are high in the near term. Uncertainty during the rollout phase could disrupt trade flows, create pricing ambiguity, and weigh on investor sentiment. Markets appear to be pricing this risk, with the rupiah underperforming regional peers amid a softening macro backdrop - including a sharply narrowing trade surplus ($89mn in April vs. $3.3bn in March), declining FX reserves (down ~USD6.3bn YoY in April), and persistent capital outflows."
"We expect the government to take direct control of several key commodity exports. Market mechanisms are not eliminated, but increasingly mediated by the state. Prices could still reference global benchmarks, even as state influence rises."
"USD/IDR could develop a mild downside bias on an unwinding of crowded long USD/IDR positioning and cheap valuations. US–Iran de-escalation could be a key trigger for reversal."
"Policy outcomes are inherently binary over the medium term. Effective execution would strengthen Indonesia’s external position and underpin rupiah stability, while poor execution or policy overreach risks disrupting trade flows, eroding competitiveness, and driving prolonged currency weakness."
"BI’s policy support will help to partially offset rising country risk premia. The central bank has raised policy rate by 50bps in May and enhanced FX support measures via issuing more high-yielding SRBI, helping to improve the rupiah’s front-end carry appeal."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- DXY adds to the monthly recovery north of the 99.00 hurdle.
- The US Dollar remains propped up by steady geopolitical uncertainty.
- The Fed’s Williams said the current monetary policy is modestly restrictive.
The US Dollar (USD) maintains its positive performance for the third consecutive day on Wednesday, this time lifting the US Dollar Index (DXY) to the vicinity of two-month highs near 99.50 and opening the door to a potential test of the psychological 100.00 hurdle in the relatively short term.
Geopolitics… and the Fed
The US Dollar has been gathering fresh momentum since the beginning of June, underpinned by persistent uncertainty surrounding the Middle East crisis, alongside the usual back-and-forth from the White House.
Another factor supporting the Greenback’s advance has been investors’ repricing of the Federal Reserve’s (Fed) policy path for this year. Indeed, one direct consequence of the US-Iran-Hormuz conflict has been the sharp rise in crude oil prices, which has, in turn, fuelled expectations of higher inflation in the months ahead.
This has reinforced the growing view that the Fed may need to maintain its restrictive policy stance for longer, a message that many Fed officials have been conveying in recent weeks.
Returning to inflation, New York Fed President John Williams said in earlier remarks that inflation has risen “quite a bit”, while noting that the labour market remains healthy. He also expressed confidence that energy prices will eventually ease, although he acknowledged that upside risks to inflation have increased.
The US “exceptionalism” is back
Lastly, a steady stream of upbeat economic data has continued to support the Greenback, reinforcing the narrative of US exceptionalism relative to its major peers.
Markets received another batch of encouraging figures on Wednesday. The ADP report showed that the US private sector added 122K jobs in May, comfortably beating market expectations. At the same time, the ISM Services PMI surprised to the upside, rising to 54.5 and pointing to continued resilience in the sector.
And once again, the inflation story remains in focus: the ISM Services Prices Paid Index climbed to 71.3, its highest reading since August 2022, adding to concerns that price pressures may prove more persistent than previously anticipated.
DXY: Levels to watch
In the daily chart, Dollar Index Spot trades at 99.52. The near-term bias is mildly bullish as price holds above the 55-day, 100-day and 200-day simple moving averages clustered just under 99.00, while also sitting slightly over a horizontal support level at 99.50. The Relative Strength Index around 60 suggests firming upside momentum, although the Average Directional Index near 18 hints that the trend remains relatively weak and susceptible to swings.
On the topside, initial resistance emerges at 100.39, ahead of a nearby cap at 100.64, with a stronger barrier sitting higher at 101.98. On the downside, immediate support is seen at 99.50, followed by the 55-day SMA around 98.95 and the broader moving-average band between the 100-day SMA at 98.56 and the 200-day SMA at 98.60, before more distant floors at 97.62 and the mid-95.00s.
(The technical analysis of this story was written with the help of an AI tool.)
- The New Zealand Dollar posts a third consecutive daily decline against the US Dollar.
- Rising tensions between the US and Iran boost demand for safe-haven assets and support the Greenback.
- Strong Chinese data fail to prevent the New Zealand Dollar’s decline.
NZD/USD falls to around 0.5870 on Wednesday at the time of writing, down 0.97% on the day. The pair extends its bearish move for a third consecutive day as investors favor the US Dollar (USD) amid escalating geopolitical tensions in the Middle East.
Risk appetite remains fragile following the latest developments between the United States (US) and Iran. The US Central Command stated that Iran launched ballistic missiles toward Kuwait and Bahrain, while the US military carried out strikes on Iran’s Qeshm Island in response. In addition, several media outlets reported new attacks across the region, further increasing market concerns and strengthening demand for safe-haven assets.
These developments overshadow encouraging economic data from China. The country’s services sector activity expanded at its fastest pace in three months in May, with the Services Purchasing Managers Index (PMI) rising to 54.4 from 52.6 previously and significantly exceeding market expectations. However, the improvement in activity in the world’s second-largest economy provides only limited support to the New Zealand Dollar (NZD), which is often viewed as sensitive to China’s economic outlook.
On the US side, Wednesday’s data also supports the Greenback. The Automatic Data Processing (ADP) report showed that private sector employment increased by 122K jobs in May, up from a revised 105K previously and above market expectations of 117K. According to Nela Richardson, Chief Economist at ADP, hiring was more broad-based across industries, highlighting a labor market that continues to show solid momentum heading into the summer season.
At the same time, activity in the US services sector remains robust. The Institute for Supply Management (ISM) reported that its Services PMI rose to 54.5 in May from 53.6 in April, beating expectations of 53.8. The release underlines the resilience of the US economy despite some signs of moderation in the labor market.
Investors are also monitoring comments from US President Donald Trump, who said on Wednesday that Iran had agreed not to develop a nuclear weapon and that discussions with Iranian officials were ongoing. While these remarks offered some hope for de-escalation, markets remain cautious as the situation continues to evolve rapidly.
Attention now turns to upcoming US employment data, which could provide further clues about the monetary policy outlook of the Federal Reserve (Fed). For now, the combination of heightened geopolitical tensions and generally solid US economic data continues to support the US Dollar and weigh on NZD/USD.
New Zealand Dollar Price Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.31% | 0.36% | 0.06% | 0.42% | 0.65% | 1.06% | 0.59% | |
| EUR | -0.31% | 0.03% | -0.24% | 0.12% | 0.33% | 0.74% | 0.28% | |
| GBP | -0.36% | -0.03% | -0.28% | 0.06% | 0.29% | 0.69% | 0.24% | |
| JPY | -0.06% | 0.24% | 0.28% | 0.33% | 0.57% | 0.94% | 0.51% | |
| CAD | -0.42% | -0.12% | -0.06% | -0.33% | 0.24% | 0.63% | 0.17% | |
| AUD | -0.65% | -0.33% | -0.29% | -0.57% | -0.24% | 0.39% | -0.09% | |
| NZD | -1.06% | -0.74% | -0.69% | -0.94% | -0.63% | -0.39% | -0.44% | |
| CHF | -0.59% | -0.28% | -0.24% | -0.51% | -0.17% | 0.09% | 0.44% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
- US ISM Services PMI rose to 54.5 in May, pointing to stronger business activity.
- Ueda said the BoJ will debate the "pros and cons" of a rate hike as inflation risks increase.
- Stronger US data supported Treasury yields and boosted the US Dollar against the Japanese Yen.
The USD/JPY pair is trading just below the 160.00 price level on Wednesday, as the US Dollar (USD) remains supported by stronger-than-expected economic data, while the Japanese Yen (JPY) struggles to attract sustained demand amid a cautious market mood.
The latest US ISM Services PMI rose to 54.5 in May from 53.6 in April, surpassing market expectations and pointing to stronger growth in the services sector. The report reinforced confidence in the resilience of the US economy and supported expectations that the Federal Reserve (Fed) may maintain a cautious approach toward interest rate cuts.
Earlier in the day, Bank of Japan (BoJ) Governor Kazuo Ueda struck a hawkish tone during his speech in Tokyo, stating that the BoJ must carefully weigh the "pros and cons" of a rate hike if inflation risks become more significant than risks to economic growth.
In the past the BoJ has supported the value of the Yen when the USD/JPY exchange rate rises above 160.00. The last time the central bank pushed into the market in this fashion was just over a month ago on April 30, which saw USD/JPY drop from an intraday high of 160.72 to an intraday low of 155.55.
He warned that higher energy prices could generate broader inflation pressure and reiterated that the central bank will continue raising rates at an appropriate pace if underlying inflation evolves in line with its projections.
Short-term technical analysis:
On the 4-hour chart, USD/JPY trades at 159.98, maintaining a clear bullish bias as price holds above both the 20 and 100-period Simple Moving Average (SMAs) at roughly 159.64 and 158.97, respectively. The immediate topside focus is the nearby horizontal resistance at 160.00, with the Relative Strength Index (RSI) around 66 suggesting firm but somewhat stretched upside momentum that could leave the pair sensitive to any rejection from this ceiling.
On the downside, initial support is seen at the intraday horizontal levels clustered around 159.89 and 159.81, ahead of the prior reaction floor near 159.70. A deeper pullback would expose the 20-period SMA at 159.64, with the 100-period SMA down at 158.97 acting as a more distant, yet still constructive, dynamic base as long as it holds.
(The technical analysis of this story was written with the help of an AI tool.)
(This story was corrected on June 3 at 17:30 GMT to say that on April 30, the USD/JPY drop, not the Yen)
Forex Market News
Our dedicated focus on forex news and insights empowers you to capitalise on investment opportunities in the dynamic FX market. The forex landscape is ever-evolving, characterised by continuous exchange rate fluctuations shaped by vast influential factors. From economic data releases to geopolitical developments, these events can sway market sentiment and drive substantial movements in currency valuations.
At Rakuten Securities Hong Kong, we prioritise delivering timely and accurate forex news updates sourced from reputable platforms like FXStreet. This ensures you stay informed about crucial market developments, enabling informed decision-making and proactive strategy adjustments. Whether you’re monitoring forex forecasts, analysing trading perspectives, or seeking to capitalise on emerging trends, our comprehensive approach equips you with the insights needed to navigate the FX market effectively.
Stay ahead with our comprehensive forex news coverage, designed to keep you informed and prepared to seize profitable opportunities in the dynamic world of forex trading.
