Forex News
Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $74.49 per troy ounce, down 1.13% from the $75.35 it cost on Friday.
Silver prices have increased by 4.80% since the beginning of the year.
Unit measure | Silver Price Today in USD |
|---|---|
Troy Ounce | 74.49 |
1 Gram | 2.40 |
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 61.53 on Monday, up from 61.24 on Friday.
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.
(An automation tool was used in creating this post.)
In his annual letter to French President Emmanuel Macron on the state of the economy on Monday, European Central Bank (ECB) policymaker Francois Villeroy de Galhau argued that the ECB needs gather a "critical mass of data" suggesting that inflation is becoming entrenched before tightening the policy, per Reuters.
Market reaction
EUR/USD largely ignored these comments and was last seen trading virtually unchanged on the day at 1.1720.
ECB FAQs
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.
HSBC Asset Management notes that US equities are at new highs while maintaining their price-earnings premium, supported by robust profit growth expectations around 15% for 2026. Other regions such as Taiwan, South Korea and Brazil have seen notable re-ratings, with global PE discounts shrinking and investors needing to work harder to find value opportunities across markets.
US profits and EM re-ratings in focus
"The US stock market is back at new highs but still trades at the same price-earnings (PE) ratio premium. Many other global markets have seen re-ratings. Why?"
"The answer lies in profits. US profits growth is pencilled in at around 15% in 2026, which has kept the valuation arithmetic in check."
"Meanwhile, other regions have seen PE discounts turn into PE premiums. Taiwan stands out as the most “expensive” market relative to its history, sporting a premium to its average PE of over 20%. That’s down to its central role in the AI hardware supply chain."
"South Korea also benefits from AI excitement, but despite strong price momentum, expected profit growth of 100% keeps the market trading at a discount."
"Also noteworthy is Brazil, a major oil exporter, where last year’s 30% PE discount is now a 7% premium. That partly reflects a pick-up in investor sentiment towards emerging market risk."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Societe Generale economists report that the Bank of England's (BoE) Monetary Policy Committee (MPC) left Bank Rate at 3.75% with an 8–1 vote. Their base case is for rates to remain unchanged through 2026, though further hikes of 50–75 bps are possible if the US‑Iran conflict persists. Recent UK data show stronger borrowing as households and firms lock in rates.
MPC steady but hiking risk persists
"Last week in the UK, the MPC kept Bank Rate unchanged at 3.75% in an 8–1 vote split. Our base case remains for Bank Rate to stay on hold throughout the year, although the call is finely balanced."
"In the absence of a near‑term resolution to the US-Iran conflict, 50 to 75bp of rate hikes this year would appear appropriate."
"On the data front, the money and credit release showed a notable pickup in borrowing, possibly driven by households and firms seeking to lock in interest rates amid the risk of higher rates from the ongoing energy shock."
"In particular, remortgaging and lending to non-financial firms rose to their highest levels since 2020."
"Meanwhile, the BoE’s BEAR conference will provide MPC members with an opportunity to speak following last week’s meeting."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
UOB strategists expect the European Central Bank (ECB) to keep policy broadly steady but deliver a single 25-basis-point rate hike at the 11 Jun meeting. They note resilient labour markets and fiscal buffers, but highlights energy-driven inflation risks and a modest growth hit from the Middle East conflict, leaving UOB more dovish than market pricing.
ECB seen tightening once in June
"We now expect euro-area inflation to peak above 3.0% in 4Q26 before declining below 2.0% in 2027. Although underlying inflation moderated in Apr, policy tightening may still be warranted as surveys suggest that firms’ and households’ price expectations are rising, increasing the risk of inflation persistence."
"At this juncture, while the escalation in geopolitical tensions is clearly weighing on activity, we judge the adverse impact on growth to be more modest than the upside pressure on inflation, tipping the balance of risks toward further policy tightening."
"The ECB emphasised that the medium-term inflation outlook will hinge on the intensity and duration of the energy price shock, as well as the magnitude of indirect and second-round effects."
"Fiscal buffers remain supportive, labour markets are still tight, and the economy appears sufficiently resilient to absorb a limited rate increase."
"Following the Apr decision, we now expect the ECB to raise rates once this year, delivering a 25-bps hike at the 11 Jun meeting. That said, uncertainty around the policy path remains elevated and the outlook is highly dependent on developments in commodity markets."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- EUR/USD hits session lows near 1.1700, down from Friday's highs near 1.1785.
- Trump's vow to free ships in Hormuz has triggered a verbal escalation with Iran.
- Eurozone Manufacturing PMI confirms that business activity accelerated, despite war pressures, in April.
The Euro (EUR) is retreating further from last week's highs at the 1.1785 area against the US Dollar (USD) on Monday, and trades at session lows near 1.1710 at the time of writing. US President Donald Trump’s pledge to reopen Hormuz has triggered fears of a further escalation of the conflict, sending Oil prices higher and dampening investors’ appetite for risk.
Trump announced on early Monday a military operation to help free vessels stranded in the Strait of Hormuz as a “humanitarian act” towards neutral countries without giving any details on the plan. Iranian authorities answered that any military action would be considered a violation of the ceasefire, and responded with “full strength.”
The plan has failed to soothe investors, and Oil prices have rushed higher. The Brent Barrel trades near $108, and the WTI is a few cents below $100.
In the Eurozone, data released on Monday has fallen on the bright side, but the impact on the pair has been marginal so far. The final HCOB Manufacturing Purchasing Managers’ Index (PMI) has confirmed preliminary figures of a 52.2 reading in April, a 47-month high and up from 51.6 in March, and the Sentix Investors' Confidence Index improved moderately to -16.4 in May from -19.2 in April.
Later on Monday, the speeches by European Central Bank (ECB) committee members, Piero Cipollone and Joachim Nagel, are likely to draw some attention. In the US, the focus will be on March Factory Orders, although the highlights of the week will be April’s employment reports, with particular interest in Friday's Nonfarm Payrolls reading.
Technical Analysis: Looking for direction around 1.1700
EUR/USD found support above the 1.1650 area and is looking for direction halfway through a broadly 100-pip range, with upside attempts capped below the 1.1785 area.
Technical indicators on the 4-hour chart are still in bullish territory, yet momentum is fading. The Relative Strength Index (RSI) is around 50, pointing to a balanced bias, while the Moving Average Convergence Divergence (MACD) indicator hovers close to the zero line with only modest positive histogram readings, hinting at a lack of clear directional conviction for now.
The pair is now clinging to support above the 1.1700 level on Monday, which so far is closing the path towards the mentioned support area between 1.1645 and 1.1675. On the topside, immediate resistance lies at the 1.1785 area, which capped bulls last Friday and on April 20 and 21. Further up, the April 17 high at 1.1850 and the February 10 high, near 1.1930, would come to the focus ahead of the 1.2000 psychological level.
(The technical analysis of this story was written with the help of an AI tool.)
- AUD/USD weakens as the US Dollar gains on safe-haven demand after Iran warns of a harsh response in Hormuz tensions.
- Iran warns it will “respond harshly” and cautions the US against entering the Strait of Hormuz.
- ASX May 2026 cash rate futures at 95.745 imply a 74% chance of a rate hike to 4.35% on Tuesday.
AUD/USD pulls back from 46-month high of 0.7227, reached on May 1, trading around 0.7200 during the European hours on Monday. The pair weakens as the US Dollar (USD) gains on safe-haven demand after Iran’s armed forces warned of a harsh response if the United States (US) enters the Strait of Hormuz.
Iranian army also said all commercial ships and oil tankers must refrain from movement through the Strait of Hormuz without coordination with the Iranian military. President Donald Trump said on Sunday that the United States will begin guiding neutral ships stranded in the Persian Gulf out through the Strait of Hormuz starting Monday. The initiative is aimed at helping civilian vessels from non-aligned countries exit the contested waterway and resume normal operations.
The Australian Dollar (AUD) may regain its ground as market participants expect the Reserve Bank of Australia (RBA) to deliver an interest rate hike on Tuesday. As of May 1, the ASX 30 Day Interbank Cash Rate Futures May 2026 contract was trading at 95.745, implying a 74% probability of a rate hike to 4.35%.
The main catalyst is a sharp rise in Australia’s headline inflation in March, driven by global energy shocks and tensions in the Middle East. Australia’s headline Consumer Price Index (CPI) increased to 4.6% year-over-year (YoY) in March. Although slightly below the 4.7% forecast, the reading remains well above the central bank’s target range.
Australia’s TD-MI Inflation Gauge advanced 0.6% month-over-month (MoM) in April, easing from a record 1.3% surge in the previous month but marking a second consecutive monthly rise. Meanwhile, ANZ Job Advertisements declined 0.8% MoM, moderating from March’s 3.2% drop, the steepest fall in six months, while extending a second straight contraction.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
European Central Bank policymaker Peter Kazimir said on Monday that although they are not committed to any fixed interest rate path, they remain firm in their policy approach.
Key takeaways
"Higher energy prices bound to spread to the rest of the economy."
"Policy tightening in June is all but inevitable."
"Increasingly likely that Europe is facing a prolonged period of broad-based price increases."
Market reaction
EUR/USD remains within its daily range after these comments and was last seen trading flat at 1.1720.
BNY’s Bob Savage argues that the central bank of Norway, Norges Bank’s bias to tighten, driven by domestic and energy-related strength, is largely priced and may not extend Norwegian Krone (NOK) gains. By contrast, soft Swedish inflation and weak growth expectations mean the the central bank of Sweden, Riksbank is unlikely to hike this year. He expects NOK–SEK divergence to become more visible as markets reassess year-end rate expectations.
Norges hawkish, Riksbank likely on hold
"Transposing such views onto Norges Bank and the Riksbank, which decide in the coming days, we believe a similar approach is needed as markets continue to expect multiple hikes toward year end at both. As we have stressed, domestic conditions already justified aggressive moves from Norges."
"With energy-related output adding upside risk to the labor market, a more assertive stance is perhaps warranted – though much of this is already in the price. Norges will continue to sell FX to purchase NOK for May, but at NOK 100mn a day, the pace sits toward the lower end of historical transaction records."
"We expect a move to neutral soon."
"For the Riksbank, considering their low policy starting point, matching the ECB would have been understandable, but the surprisingly soft inflation prints for March (sequential decline in both CPI and CPI-F) and lackluster growth expectations forced out almost 50bp in tightening through mid-April, though expectations are ticking up again due to ceasefire uncertainty."
"We don’t see the Riksbank moving this year either, and NOK–SEK divergence will likely become more apparent in the coming cycles."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- GBP/JPY attracts heavy intraday selling on Monday amid suspected Yen intervention.
- Economic concerns stemming from Middle East tensions cap the upside for the JPY.
- The BoE’s hawkish outlook lends support to the GBP and also limits losses for the cross.
The GBP/JPY cross seems to have stabilized following good two-way price swings earlier this Monday and trades just below the 213.00 mark during the first half of the European session.
The Japanese Yen (JPY) gets a strong boost at the start of a new week amid speculations that authorities again intervened in the FX market to prop up the weak domestic currency. This, in turn, was seen as a key factor behind the GBP/JPY pair's intraday decline of nearly 200 pips from levels just above mid-216.00s. However, economic concerns stemming from the Middle East crisis and the continued disruption of energy supplies through the Strait of Hormuz hold back the JPY bulls from placing aggressive bets.
Meanwhile, US President Donald Trump announced a new initiative to guide ships stranded in the Gulf under a program called "Project Freedom". The immediate market reaction, however, remains muted as top Iranian lawmaker Ebrahim Azizi said that any US interference in the strategic waterway will be considered a violation of the ceasefire. This, along with the lack of progress in US-Iran peace talks, keeps geopolitical risks in play and remains supportive of elevated Crude Oil prices, capping gains for the JPY.
The British Pound (GBP), on the other hand, draws support from the Bank of England's (BoE) hawkish outlook, suggesting that rate hikes could be appropriate if inflation remains persistent. This turns out to be another factor that contributes to limiting the downside for the GBP/JPY cross. From a technical perspective, the intraday fall stalled near the 100-day Simple Moving Average (SMA), further warranting caution before positioning for an extension of last week's sharp pullback from the highest level since January 2008.
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 British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | 0.11% | -0.08% | 0.10% | 0.08% | -0.01% | 0.13% | |
| EUR | 0.00% | 0.08% | -0.07% | 0.10% | 0.10% | -0.00% | 0.12% | |
| GBP | -0.11% | -0.08% | -0.17% | 0.01% | 0.02% | -0.09% | 0.06% | |
| JPY | 0.08% | 0.07% | 0.17% | 0.14% | 0.10% | 0.01% | 0.14% | |
| CAD | -0.10% | -0.10% | -0.01% | -0.14% | -0.04% | -0.14% | 0.03% | |
| AUD | -0.08% | -0.10% | -0.02% | -0.10% | 0.04% | -0.13% | 0.04% | |
| NZD | 0.00% | 0.00% | 0.09% | -0.01% | 0.14% | 0.13% | 0.15% | |
| CHF | -0.13% | -0.12% | -0.06% | -0.14% | -0.03% | -0.04% | -0.15% |
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).
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