Forex News
Here is what you need to know for Thursday, June 11:
The US Dollar Index (DXY) trades with a firmer tone above 100.00 after May inflation data highlighted persistent price pressure in the United States (US). The headline Consumer Price Index (CPI) rose 4.2% YoY, accelerating from 3.8% previously, while it increased 0.5% on a monthly basis. The data reinforced expectations that the Federal Reserve (Fed) may keep interest rates higher for longer despite softer core inflation readings.
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | 0.09% | 0.10% | -0.00% | 0.45% | 0.30% | 0.23% | |
| EUR | -0.03% | 0.04% | 0.06% | -0.09% | 0.35% | 0.27% | 0.20% | |
| GBP | -0.09% | -0.04% | 0.02% | -0.10% | 0.34% | 0.24% | 0.16% | |
| JPY | -0.10% | -0.06% | -0.02% | -0.13% | 0.31% | 0.21% | 0.10% | |
| CAD | 0.00% | 0.09% | 0.10% | 0.13% | 0.45% | 0.34% | 0.24% | |
| AUD | -0.45% | -0.35% | -0.34% | -0.31% | -0.45% | -0.11% | -0.20% | |
| NZD | -0.30% | -0.27% | -0.24% | -0.21% | -0.34% | 0.11% | -0.08% | |
| CHF | -0.23% | -0.20% | -0.16% | -0.10% | -0.24% | 0.20% | 0.08% |
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).
EUR/USD slips toward the 1.1540 area as the stronger Greenback pressures the shared currency. Traders are looking ahead to Thursday's European Central Bank (ECB) policy decision.
GBP/USD falls toward the 1.3370 region as broad US Dollar strength outweighs support from resilient UK economic data. Market participants remain focused on global interest rate expectations and risk sentiment.
USD/JPY climbs well into intervention territory above 160.50 as rising US Treasury yields widen the yield differential between the US and Japan.
AUD/USD weakens toward the 0.7000 area after the National Australia Bank (NAB) stated that the Reserve Bank of Australia's (RBA) next move is likely a rate cut, though the timing remains uncertain. Stronger US inflation data and renewed safe-haven demand for the USD add further pressure on the Aussie.
West Texas Intermediate (WTI) crude Oil rose 3% to $90.80 per barrel as reports indicating difficult negotiations between Washington and Tehran have kept supply risks in focus.
Gold trades near the $4,070 area, giving back part of its recent gains as higher Treasury yields and a firmer US Dollar reduce demand for the non-yielding metal.
What’s next in the docket:
Thursday, June 11:
- Australia Inflation Expectations (Jun)
- UK Monthly GDP (Apr)
- UK Industrial Production (Apr)
- UK Manufacturing Production (Apr)
- UK Trade Balance (Apr)
- Germany CPI (May)
- ECB Interest Rate Decision
- US PPI (May)
- US Core PPI (May)
- US Initial Jobless Claims
Friday, June 12:
- Japan Industrial Production (Apr)
- UK Inflation Expectations (Q2)
- US Michigan Consumer Sentiment (Jun)
- US Michigan Inflation Expectations (Jun)
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
- Silver breaks below 200-day SMA, confirming bearish technical breakdown.
- RSI nears oversold territory, but downtrend remains firmly intact.
- Break below $61.02 exposes $60.00 and $54.46 supports.
Silver price drops below $65.00, extending its week-long losses to more than 6%, trading down nearly 2.50% in the day as the white metal breaks below the 200-day Simple Moving Average (SMA) at $67.25.
XAG/USD Price Forecast: Technical Outlook
Price action suggests the white metal is poised to extend its losses if Silver dips below its year-to-date (YTD) low of $61.02 per troy ounce. Two days ago, XAG/USD fell below the 200-day SMA to a two-month low of $64.37, before hitting a new low of $63.37 at the time of writing.
Momentum is also extremely bearish as depicted in the Relative Strength Index (RSI). The index is near the 30% oversold territory, though given the strength of the downtrend, the most extreme level is at 20%. Hence, the path of least resistance is downwards.
Silver’s first support level is at $63.00. Below this level lies the YTD low of $61.02, ahead of the $60.00 mark. If hurdled, the next support is the October 17, 2025, daily high turned support at $54.46.
On the upside, Silver buyers must reclaim the $65.00 milestone before the 200-day SMA at $67.25.
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.
- EUR/USD sees little change as traders remain cautious ahead of the ECB's widely expected 25-basis-point rate hike.
- Markets are focused on ECB President Christine Lagarde's comments for guidance.
- The US Dollar finds support after US CPI held at 4.2% YoY in May, limiting gains in the shared currency.
The EUR/USD pair trades near the 1.1550 region on Thursday as the Euro (EUR) remains little changed despite expectations that the European Central Bank (ECB) will raise interest rates at its upcoming policy meeting. Investors remain cautious ahead of the decision, focusing on policymakers' guidance regarding the future path of monetary policy.
Markets widely expect the ECB to deliver a 25-basis-point rate hike as officials continue their efforts to bring inflation back toward target. However, uncertainty over the pace of future tightening and concerns about the Eurozone's economic outlook have limited demand for the shared currency ahead of the announcement.
Meanwhile, the US Dollar (USD) finds support after the latest US inflation data showed headline Consumer Price Index (CPI) inflation remained at 4.2% YoY in May. Core CPI rose to 2.9% YoY, and investors remain cautious about declaring victory over inflation as the Iran war energy shock continues to remain a risk.
Short-term technical analysis:
On the 4-hour chart, EUR/USD trades at 1.1550, holding a capped tone as it sits below the 100-period Simple Moving Average (SMA) at 1.1609 and clings to nearby support. The pair is trading over the 20-period SMA at 1.1540, but the cluster of horizontal resistances at 1.1559 and 1.1573 keeps the upside contained, reinforcing a corrective rather than impulsive recovery. The Relative Strength Index (RSI) around 46 hints at modest, non-committal momentum, consistent with a market consolidating under a heavier medium-term cap.
On the topside, initial resistance is located at 1.1559, followed by 1.1573, with the 100-period SMA at 1.1609 acting as the more significant barrier that bulls would need to reclaim to ease the bearish pressure. On the downside, immediate support is seen at 1.1549, reinforced by the nearby 20-period SMA at 1.1540, with a break exposing the next horizontal floor at 1.1535; a sustained move below these levels would open the door to a deeper pullback in the near term.
(The technical analysis of this story was written with the help of an AI tool.)
- USD/JPY holds on intervention levels after recovering the April 30 losses.
- RSI near 64 signals bullish momentum approaching overbought conditions.
- Break below 160 exposes 159.50 and 50-day SMA support.
The USD/JPY pair extends its gains for the second straight day on Wednesday, drifting higher above the 160.00 threshold, in an intervention zone. Still, it remains shy of the year-to-date (YTD) high of 160.72 set on April 30, the same day the pair plunged nearly 500 pips amid the Bank of Japan's (BoJ) market intervention.
USD/JPY Price Forecast: Technical outlook
USD/JPY recovered April’s 30 losses in 28 trading days, and despite momentum remaining bullish—as depicted by the Relative Strength Index (RSI)—, fears that Japanese authorities could step in to push the pair lower are keeping buyers from testing the YTD high of 160.72, ahead of the 161.00 mark.
The RSI is bullish at 64, approaching overbought conditions, though its advance has been steady, an indication of traders' caution.
On the downside, if USD/JPY drops below 160.00, the first support would be 159.50, followed by the June 3 low at 159.36. Below these levels, the next support would be the 50-day Simple Moving Average (SMA) at 158.95, followed by the 100-day SMA at 157.82.
USD/JPY Price Chart – Daily
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | -0.02% | 0.05% | -0.12% | 0.23% | 0.07% | 0.11% | |
| EUR | 0.08% | 0.04% | 0.13% | -0.08% | 0.25% | 0.14% | 0.19% | |
| GBP | 0.02% | -0.04% | 0.06% | -0.10% | 0.24% | 0.11% | 0.14% | |
| JPY | -0.05% | -0.13% | -0.06% | -0.19% | 0.14% | 0.00% | 0.03% | |
| CAD | 0.12% | 0.08% | 0.10% | 0.19% | 0.33% | 0.19% | 0.22% | |
| AUD | -0.23% | -0.25% | -0.24% | -0.14% | -0.33% | -0.14% | -0.10% | |
| NZD | -0.07% | -0.14% | -0.11% | -0.00% | -0.19% | 0.14% | 0.03% | |
| CHF | -0.11% | -0.19% | -0.14% | -0.03% | -0.22% | 0.10% | -0.03% |
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 Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
- The Swiss Franc weakens as escalating tensions in the Middle East support the US Dollar.
- US headline inflation reaches its highest level since April 2023.
- Markets turn their focus to US producer inflation data due on Thursday.
The Swiss Franc (CHF) weakens against the US Dollar (USD) on Wednesday as renewed tensions between the United States and Iran support demand for the Greenback, while traders show a muted reaction to the latest US inflation data. At the time of writing, USD/CHF is trading around 0.7991, near its highest level in two months.
US inflation picked up again in May as higher Oil prices continued to feed into consumer costs. Annual inflation rose to 4.2%, the highest since April 2023, although the monthly pace eased slightly to 0.5% from 0.6%.
Despite the jump in the headline figure, Core inflation rose only modestly to 2.9% from 2.8%, while the monthly reading slowed to 0.2% from 0.4%, coming in below expectations.
The data did little to change expectations that the Federal Reserve (Fed) could raise interest rates later this year. However, the modest increase in core inflation suggested underlying price pressure remains relatively contained, briefly weighing on the US Dollar before it recovered as traders turned their attention back to the evolving situation in the Middle East.
US President Donald Trump renewed threats of military action against Iran after Tehran shot down a US Apache helicopter near the Strait of Hormuz earlier this week. On Tuesday, the US carried out retaliatory strikes against Iranian targets, while Iran responded with attacks on US military bases in the Gulf.
Speaking on Wednesday, Trump said "we have every right" to resume attacks on Iran, adding that "we hit Iran hard yesterday" and warning that "we will hit again today." He also threatened to target Iranian power plants and bridges.
The remarks helped lift the US Dollar and Oil prices. The US Dollar Index (DXY), which tracks the Greenback's value against six major peers, recovered to around 99.92 after briefly slipping to 99.72 earlier in the day.
Traders now turn their attention to the US Producer Price Index (PPI) report due on Thursday for further clues on the inflation outlook. Economists expect headline PPI to accelerate to 6.4% YoY from 6.0%, while core PPI is forecast to rise to 5.4% from 5.2%.
Inflation FAQs
Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.
The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.
Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.
Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.
United States (US) President Donald Trump said on Tuesday that a secret US military operation helped secure commercial shipping through the Strait of Hormuz, allowing more than 100 million barrels of Oil to reach global markets amid ongoing tensions involving Iran.
Key takeaways:
Last month, I directed our great US military to execute a secret mission to support oil tankers and other commercial ships through the Strait of Hormuz.
[I'm] pleased to announce that this effort has resulted in more than 100 million barrels of Oil making its way through the Strait and into the open market.
More than 200 commercial ships have safely traveled through the Strait.”
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.10% | -0.08% | 0.06% | -0.14% | 0.15% | -0.02% | 0.06% | |
| EUR | 0.10% | 0.00% | 0.17% | -0.09% | 0.19% | 0.08% | 0.16% | |
| GBP | 0.08% | -0.00% | 0.15% | -0.07% | 0.22% | 0.09% | 0.15% | |
| JPY | -0.06% | -0.17% | -0.15% | -0.24% | 0.04% | -0.10% | -0.04% | |
| CAD | 0.14% | 0.09% | 0.07% | 0.24% | 0.28% | 0.14% | 0.20% | |
| AUD | -0.15% | -0.19% | -0.22% | -0.04% | -0.28% | -0.14% | -0.06% | |
| NZD | 0.02% | -0.08% | -0.09% | 0.10% | -0.14% | 0.14% | 0.06% | |
| CHF | -0.06% | -0.16% | -0.15% | 0.04% | -0.20% | 0.06% | -0.06% |
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).
- Trump warns of hard attacks as Iran targets Gulf bases.
- US CPI reaches three-year high, keeping Fed hike bets alive.
- Oil rebound and rising yields deepen pressure on Gold.
Gold (XAU/USD) price collapses over 3% on Wednesday after the latest inflation report in the US showed prices remain elevated, reinforcing expectations that interest rates could remain higher-for-longer, a headwind for the non-yielding metal. The XAU/USD pair trades at $4,130 after testing two-month lows near $4,105.
XAU/USD sinks as hot CPI and retaliation fears hit bullion
Market mood shifted sour after US President Trump said that the US “will be attacking Iran hard” and that it has the right to resume attacks if Tehran doesn’t sign a deal. Meanwhile, Iran launched attacks on US bases established in the Gulf States, in Jordan, Kuwait and Bahrain.
US CPI above the 4% threshold, PPI up next
US inflation jumped to 4.2% YoY in May, its highest level in three years—aligned with estimates—, according to the Consumer Price Index (CPI), driven by energy prices, which rose 3.9%, up from April’s 3.8%. Underlying inflation, as reflected in the core CPI, came in at 2.9% YoY, as foreseen, up from 2.8% in the previous month.
After the data, money markets are still pricing in a Federal Reserve (Fed) rate hike towards the end of the year, yet expect 21 basis points (bps) of tightening, below the 25 bps hit on Monday.
Bullion is heading south, pressured by the recovery of Oil prices. After Trump’s remarks, the US crude Oil benchmark, WTI, is up 2.62% to $91.00 per barrel. As inflationary pressures build, US Treasury yields followed suit, with the 10-year T-note rising almost two basis points to 4.536%.
Traders' focus shifts to the May Producer Price Index (PPI) release, with both figures expected to rise modestly. Headline PPI is projected to hit 6.4% YoY, up from 6%, and Core PPI is foreseen to rise from 5.2% to 5.4% YoY. Furthermore, jobless claims are also expected to dip from 225K to 219K for the week ending June 6.
XAU/USD technical outlook: Gold tanks towards $4,100 as bears eye a YTD low
From a technical standpoint, Gold shifted bearishly, with sellers eyeing a clear break below the latest cycle low at $4,098, the March 23 yearly low. If broken, Bullion prices could collapse to $4,000, as the next area of interest from a supply/demand perspective would be the October 28, 2025, swing low at $3,886.
The Relative Strength Index (RSI) shifted into oversold territory, but it hasn’t reached the 20 level, considered the most extreme, which could trigger a consolidation in Gold prices.
For a bullish reversal, XAU/USD must climb above the 200-day Simple Moving Average (SMA) at $4,443, which opens the path to challenge $4,500.
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.
US President Donald Trump said on Wednesday the US “will be attacking Iran very hard,” as he pressures Tehran to sign a deal, adding that “they’ve taken too long to negotiate a deal that would have been great for them, now they will have to pay the price.”
Iran’s President Masoud Pezeshkian posted on X his response to Trump’s threat to attack infrastructure, “Critical infrastructure is the lifeblood of the people. Threatening to target them, from transportation networks to electricity and water utilities, is not a show of strength but a sign of desperation in the face of a nation's will. Iran will remain steadfast against any pressure and threat, relying on the knowledge and ability of experts, national unity, and solidarity.”
Market’s reaction
- Gold is down almost 3.50% to $4,116, while the US Dollar Index (DXY) is about to turn flat at 99.97.
- The US crude Oil benchmark WTI pared earlier losses, gaining over 2.80% as of writing, with the price per barrel back above $91.00.
- US equities are also down, with the S&P 500 and the Nasdaq down over 1% and 1.6%, respectively.
Gold vs. Oil vs. S&P 500
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | -0.03% | 0.08% | -0.13% | 0.20% | 0.02% | 0.09% | |
| EUR | 0.06% | 0.01% | 0.15% | -0.10% | 0.19% | 0.09% | 0.15% | |
| GBP | 0.03% | -0.01% | 0.13% | -0.09% | 0.20% | 0.08% | 0.13% | |
| JPY | -0.08% | -0.15% | -0.13% | -0.21% | 0.08% | -0.06% | -0.01% | |
| CAD | 0.13% | 0.10% | 0.09% | 0.21% | 0.30% | 0.16% | 0.20% | |
| AUD | -0.20% | -0.19% | -0.20% | -0.08% | -0.30% | -0.13% | -0.08% | |
| NZD | -0.02% | -0.09% | -0.08% | 0.06% | -0.16% | 0.13% | 0.05% | |
| CHF | -0.09% | -0.15% | -0.13% | 0.01% | -0.20% | 0.08% | -0.05% |
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.
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