Forex News
Bank of Japan (BoJ) Governor Kazuo Ueda said after a meeting with Japan’s Prime Minister (PM) Sanae Takaichi that both the central bank and government will continue to coordinate closely. Ueda added, “The meeting was beneficial to all parties.”
Additional remarks
Explained monetary policy thinking to Takaichi.
Did not discuss any specifics (when asked about market prospects of June rate hike).
Takaichi said she hoped for BOJ to conduct monetary policy appropriately.
Adding that she hoped for it to take into account government steps to cushion against the blow of rising inflation.
Able to exchange views in a positive manner on various fronts.
Discussed economic, price, market developments in taking into account the Middle East conflict.
Market reaction
No reaction seen in USD/JPY after BoJ Ueda's comments. As of writing, USD/JPY trades 0.1% higher at around 159.10.
Bank of Japan FAQs
The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%.
The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance.
The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when the BoJ decided to abandon its ultra-loose policy stance.
A weaker Yen and the spike in global energy prices led to an increase in Japanese inflation, which exceeded the BoJ’s 2% target. The prospect of rising salaries in the country – a key element fuelling inflation – also contributed to the move.
- AUD/USD declines to near 0.7130 amid concerns over the continuation of the RBA’s policy tightening cycle.
- Market experts doubt the RBA’s policy tightening continuation, following weak Australian employment data.
- Investors await fresh cues regarding US-Iran negotiations on peace deal.
The Australian Dollar (AUD) is down 0.25% to near 0.7130 against the US Dollar (USD) during the European trading session on Friday. The Aussie pair faces intense selling pressure as fading hawkish Reserve Bank of Australia (RBA) bets, following the release of the weak Australian employment data for April, have diminished the appeal of the antipodean.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.14% | 0.03% | 0.08% | 0.13% | 0.28% | 0.30% | -0.06% | |
| EUR | -0.14% | -0.11% | -0.06% | -0.02% | 0.16% | 0.17% | -0.20% | |
| GBP | -0.03% | 0.11% | 0.06% | 0.13% | 0.25% | 0.29% | -0.10% | |
| JPY | -0.08% | 0.06% | -0.06% | 0.07% | 0.21% | 0.23% | -0.16% | |
| CAD | -0.13% | 0.02% | -0.13% | -0.07% | 0.13% | 0.16% | -0.21% | |
| AUD | -0.28% | -0.16% | -0.25% | -0.21% | -0.13% | 0.03% | -0.37% | |
| NZD | -0.30% | -0.17% | -0.29% | -0.23% | -0.16% | -0.03% | -0.39% | |
| CHF | 0.06% | 0.20% | 0.10% | 0.16% | 0.21% | 0.37% | 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 Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
The data showed on Thursday that the Australian Unemployment Rate jumped to 4.5%, while it was expected to remain steady at 4.3%. During the month, Australian employers fired 18.6K workers, while they were anticipated to have hired 17.5K fresh job-seekers.
A surprising increase in the Australian jobless rate has raised concerns about whether the RBA will continue its monetary tightening cycle in the June policy meeting.
Analysts at Westpac have stated that their call for the RBA to pause in its June policy meeting is now high-conviction, but expect the tightening cycle to remain broadly continued amid high inflation concerns.
In addition to the weakness in the Australian Dollar, a broadly firm US Dollar is also hurting the Aussie pair. As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.1% higher to near 99.30.
Going forward, the major trigger for the pair and global markets will be statements from Washington and Tehran regarding the peace deal. On Thursday, Iran said that the final draft of the peace deal with the United States (US) has been finalized, and a deal could be announced in few hours. However, no deal has been announced yet.
Economic Indicator
Unemployment Rate s.a.
The Unemployment Rate, released by the Australian Bureau of Statistics, is the number of unemployed workers divided by the total civilian labor force, expressed as a percentage. If the rate increases, it indicates a lack of expansion within the Australian labor market and a weakness within the Australian economy. A decrease in the figure is seen as bullish for the Australian Dollar (AUD), while an increase is seen as bearish.
Read more.Last release: Thu May 21, 2026 01:30
Frequency: Monthly
Actual: 4.5%
Consensus: 4.3%
Previous: 4.3%
Source: Australian Bureau of Statistics
The Australian Bureau of Statistics (ABS) publishes an overview of trends in the Australian labour market, with unemployment rate a closely watched indicator. It is released about 15 days after the month end and throws light on the overall economic conditions, as it is highly correlated to consumer spending and inflation. Despite the lagging nature of the indicator, it affects the Reserve Bank of Australia’s (RBA) interest rate decisions, in turn, moving the Australian dollar. Upbeat figure tends to be AUD positive.
- Gold hovers above $4,500, halfway through the weekly trading range.
- Investors await more clarity from the US-Iran peace negotiations.
- XAU/USD is forming a small triangle pattern with a bearish outcome favoured.
Gold (XAU/USD) trades lower for the second consecutive day on Friday, but remains contained within previous ranges, with downside attempts limited above the $4,500 line for now. Market volatility remains subdued on Friday, with traders awaiting developments from the US-Iran war to make investment decisions.
The confusing situation in the Middle East is providing moderate support to the safe-haven US Dollar, keeping the US Dollar Index (DXY) steady near six-week highs and Gold bulls in check.
The latest news reports that Tehran is reviewing a peace proposal submitted by the US, with both parties far apart on Iran’s nuclear activities and control of the Strait of Hormuz. US Secretary of State Marco Rubio, however, said on Thursday that there was “some progress” in the talks with Tehran, which is feeding a moderate optimism
Technical Analysis: Gold is nearing the tip of a triangle pattern
XAU/USD trades at $4,522, holding a capped tone, with price action nearing the tip of a small triangle pattern. The Relative Strength Index (RSI) hovers around 45, hinting at consolidative, yet slightly negative momentum, while the Moving Average Convergence Divergence (MACD) stays in positive territory but has started to ease, suggesting that recent upside attempts are losing traction
Triangles are considered continuation patterns; thus, in this case, a bearish outcome is favoured. The base of the triangle is now at $4,500, but the key support area is the May 20 low near $4,450. A break of this level exposes late March lows at $4,350 and $4,306.
A confirmation above $4,580 (May 18 highs), on the other hand, would negate the bearish view and shift to the May 11 and 12 lows around the $4,650 ahead of May's top in the $4,770 area.
(The technical analysis of this story was written with the help of an AI tool.)
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.
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD is likely to trade between 0.7120 and 0.7175 in the near term after a sharp rebound left momentum unclear. Over 1–3 weeks, downward momentum is said to be slowing rapidly, with a break above 0.7180 signalling that recent weakness has stabilised. The broader 1–3 month view still points to a lower AUD/USD toward 0.6765 if 0.6850/0.6870 breaks.
Australian Dollar weakness shows signs of stabilising
"24-HOUR VIEW: AUD rebounded strongly to a high of 0.7175 two days ago. Yesterday, we highlighted that “the sharp bounce appears excessive,” and we were of the view that “instead of continuing to rise, AUD is more likely to trade between 0.7115 and 0.7175.” AUD then swung between 0.7100 and 0.7168 before closing little changed at 0.7149 (-0.06%). We are not able to derive much from the price action. Today, AUD could trade between 0.7120 and 0.7175."
"1-3 WEEKS VIEW: We have held a negative AUD stance for more than a week. Following the strong rebound in AUD on Wednesday, we highlighted yesterday (21 May, spot at 0.7150) that “downward momentum is slowing rapidly, and a breach of 0.7180 (‘strong resistance’ level) would indicate that the weakness in AUD has stabilised.” We continue to hold the same view."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
European Central Bank (ECB) Governing Council member and Governor of the Central Bank of Malta, Alexander Demarco, said during the European trading session on Friday that the central bank will probably need to hike interest rates in the June policy meeting.
Additional remarks
The ECB must show commitment to 2% target to stay credible.
Medium-term inflation expectations remain well anchored.
There's not much evidence of indirect inflation effects.
ECB’s meeting-by-meeting approach is still valid.
Currently I don’t see need to go too far on rates.
2026 inflation outlook likely to be revised higher.
Projections to show if one hike is enough or more needed.
Market reaction
There has been a marginal recovery in EUR/USD from 1.1596 to near 1.1606, but is still 0.1% down as of writing.
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.
Brown Brothers Harriman’s (BBH) Elias Haddad highlights USD/CAD trading higher toward key resistance at its 200-day moving average near 1.3812, with Canadian data seen as unlikely to shift markets. Haddad notes Alberta’s planned nonbinding separation referendum but stresses polls show limited appetite for separatism, suggesting contained Canadian Dollar (CAD) risk despite elevated political noise.
Pair eyes 200-day while Alberta votes
"USD/CAD is up and nearing important resistance at its 200-day moving average (1.3812). Canada March retail sales print is unlikely to be market moving. Statistics Canada advance estimate suggests that sales increased 0.6% m/m vs. 0.7% in February."
"Alberta will hold a nonbinding referendum to separate from Canada on October 19. Alberta’s premier Danielle Smith stressed that “the referendum question does not directly trigger separation, but if successful would ask Alberta’s government to commence the legal process necessary to hold a binding referendum on the matter.”"
"Despite the political noise, polls suggest limited appetite for Alberta separatism which should help contain CAD-related risks."
"More than a third of voters say they'd vote against separation. In the meantime, the Montreal Canadiens (Habs) – the only Canadian team left in the NHL Stanley Cup playoffs – is giving the Great White North a reason to rally together."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Silver prices (XAG/USD) fell on Friday, according to FXStreet data. Silver trades at $75.93 per troy ounce, down 0.96% from the $76.67 it cost on Thursday.
Silver prices have increased by 6.82% since the beginning of the year.
Unit measure | Silver Price Today in USD |
|---|---|
Troy Ounce | 75.93 |
1 Gram | 2.44 |
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 59.57 on Friday, up from 59.25 on Thursday.
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.)
Rabobank’s Senior Macro Strategist Teeuwe Mevissen notes that Brent crude has edged higher as markets reassess prospects for a peace deal in the Iran war and the risk of disruptions in the Strait of Hormuz. Mevissen highlights Iran’s plans for a new maritime authority and toll system, and links Oil moves to elevated US Treasury yields and broader stagflation concerns.
Geopolitics and Hormuz risks underpin prices
"Since the start of the Iran war the market has had a tendency to view the likelihood of a peace agreement with a ‘glass half full’ attitude. Once again, markets have found some comfort in encouraging remarks from both the US and Iran, even though both sides are making it clear that there are still major sticking points on critical issues."
"This statement comes on the heels of this week’s news that Iran is looking to set up a new “Persian Gulf Strait Authority” to exert control over a maritime zone in the area and that the country’s authorities are also discussing with Oman how to set up a permanent toll system."
"Amid the confusion over the degree of progress towards peace, Brent crude prices have ticked higher this morning, though they remain in the lower part of this week’s range."
"While asset prices continue to take their cue from speculation regarding the length of time that the Strait of Hormuz may be closed, economic data are increasingly reflecting the impact that the supply shock is already having."
"In view of the stagflationary impact of the war, this will be an issue facing many governments around the world."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
European Central Bank (ECB) President Christine Lagarde said on Friday that the long-term inflation expectations remain "broadly well-anchored," and reiterated that they are particularly attentive to the second-round effects.
"Any deviation from temporary, targeted stimulus will lead to different monetary policy stance," Lagarde further added.
Market reaction
EUR/USD stays under modest bearish pressure following these comments and was last seen losing about 0.2% on the day at 1.1595.
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.
OCBC’s Christopher Wong notes the Dollar Index is consolidating as it tracks UST yields, with softer Oil and slightly lower yields capping USD upside. The bank highlights key resistance around 99.40 and 100.50/60 and support near 98.30/50 and 97.50/60. Near-term focus is on US data and Fed policy signals rather than a clear directional break.
Dollar Index capped by yields, Oil
"The USD remains largely in consolidation mode, still tracking UST yields. Overnight US data was mixed: initial jobless claims eased, while the flash PMI showed firmer manufacturing activity but softer services momentum. The bigger driver for USD remains the yield and oil factors."
"Softer oil and modestly lower UST yields have capped USD upside, while markets stay cautious on how far to price US-Iran deal hopes."
"DXY was last at 99.20 levels. Daily momentum is bullish while RSI was near overbought conditions. Price action past few sessions saw some consolidation, with 99.40 (23.6% fibo) provide key resistance in the interim, before 100.50/60 levels (2026 high)."
"Support at 98.30/50 levels (21, 100, 200 DMAs), 98.10 (50% fibo retracement of 2026 low to high) and 97.50/60 levels (double bottom, 61.8% fibo retracement of 2026 low to high)."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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.
