Forex News
- USD/CAD stalls a two-day-old recovery move from a nearly two-month trough amid mixed cues.
- Elevated Oil prices underpin the Loonie, while rising US-Iran tensions benefit the safe-haven USD.
- The technical setup, too, warrants some caution before positioning for any meaningful upside.
The USD/CAD pair struggles to capitalize on a two-day-old recovery move from the 1.3550 area, or its lowest level since March 10, and oscillates in a range during the Asian session on Tuesday. Spot prices currently trade around the 1.3620 area amid a combination of diverging forces.
The risk of a further escalation of tensions in the Middle East amid the US-Iran standoff over the Strait of Hormuz acts as a tailwind for Crude Oil prices, which is seen underpinning the commodity-linked Loonie. This, along with the lack of follow-through US Dollar (USD) buying, keeps a lid on the USD/CAD pair. However, persistent geopolitical uncertainties and hawkish US Federal Reserve (Fed) expectations favor the USD bulls, backing the case for a further appreciating move for the currency pair.
The USD/CAD pair is holding a mildly bearish near-term bias as it remains capped beneath the 100-period Simple Moving Average (SMA) on the 4-hour chart. The said hurdle at 1.3650 coincides with the 23.6% Fibonacci retracement level of the late March-early May downfall and should act as a pivotal point. Momentum indicators are mixed, with the Relative Strength Index nearing the neutral territory at 51 and the Moving Average Convergence Divergence (MACD) marginally positive.
The technical setup, in turn, hints at fading downside pressure but not yet a clear bullish reversal while the USD/CAD pair trades below the aforementioned confluence hurdle. A sustained strength beyond, however, should pave the way for further gains towards the 38.2% retracement at 1.3710 and the 50.0% level at 1.3758. The momentum could extend further towards the 61.8% level at 1.3806, which is the prevailing supply zone on the topside.
On the downside, the next meaningful support aligns with the recent swing low around 1.3553, where buyers may attempt to rebuild a base should selling pressure resume.
(The technical analysis of this story was written with the help of an AI tool.)
USD/CAD 4-hour chart
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
- AUD/USD remains under pressure despite the RBA raising the Official Cash Rate by 25 bps to 4.35% from 4.10%.
- RBA said that Middle East conflict has driven fuel and commodity prices sharply higher, adding to inflation pressures.
- The US Dollar advances on increased risk aversion after Iran’s drone and missile attacks on the UAE.
AUD/USD holds losses for the second consecutive day, hovering around 0.7160 during the Asian hours on Tuesday. The Australian Dollar (AUD) moves little following the release of the Reserve Bank of Australia’s (RBA) policy decision.
The RBA hiked the Official Cash Rate (OCR) by 25 basis points (bps) to 4.35% from 4.10% after concluding its May monetary policy meeting. The decision aligned with the market expectations. The decision was passed by a majority, with eight members backing a 25 bps hike to 4.35%, while one voted to keep rates at 4.10%.
RBA Monetary Policy Statement indicated that inflation rose materially in H2 2025, and information since the beginning of this year confirms that some of this increase was driven by capacity pressures. Additionally, the conflict in the Middle East has resulted in sharply higher fuel and related commodity prices, which are already adding to inflation. Firms are passing on costs through price hikes, while short-term inflation expectations have also moved higher.
The AUD/USD pair depreciates as the US Dollar (USD) strengthens on safe-haven demand following Iran’s attack on the United Arab Emirates (UAE). CNBC reported Monday that the UAE was targeted by Iranian drones and missiles, while the US said it destroyed Iranian boats in the Strait of Hormuz. US President Donald Trump warned that Iran would be “blown off the face of the earth” if it targets US ships protecting commercial vessels passing through the Hormuz.
The Greenback strengthens as Treasury yields rise alongside expectations that the Federal Reserve (Fed) may need to lift interest rates to curb inflation. Minneapolis Fed President Neel Kashkari said Sunday that additional rate hikes cannot be ruled out, especially as inflation risks remain elevated due to higher energy prices linked to the Iran conflict.
Economic Indicator
RBA Interest Rate Decision
The Reserve Bank of Australia (RBA) announces its interest rate decision at the end of its eight scheduled meetings per year. If the RBA is hawkish about the inflationary outlook of the economy and raises interest rates it is usually bullish for the Australian Dollar (AUD). Likewise, if the RBA has a dovish view on the Australian economy and keeps interest rates unchanged, or cuts them, it is seen as bearish for AUD.
Read more.Last release: Tue May 05, 2026 04:30
Frequency: Irregular
Actual: 4.35%
Consensus: 4.35%
Previous: 4.1%
Source: Reserve Bank of Australia
Gold prices rose in India on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 13,969.95 Indian Rupees (INR) per gram, up compared with the INR 13,935.30 it cost on Monday.
The price for Gold increased to INR 162,942.80 per tola from INR 162,538.60 per tola a day earlier.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 13,969.95 |
10 Grams | 139,699.30 |
Tola | 162,942.80 |
Troy Ounce | 434,517.70 |
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
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.
(An automation tool was used in creating this post.)
- USD/CHF gains ahead of Switzerland’s April Consumer Price Index data release scheduled for Tuesday.
- Swiss SVME PMI rose to 54.5 in April, marking a second consecutive month of expansion.
- The US Dollar strengthens on safe-haven demand after Iran’s drone and missile attacks on the UAE.
USD/CHF holds ground for the third consecutive day, trading around 0.7840 during the Asian hours on Tuesday. The Swiss Federal Statistical Office is set to release the April Consumer Price Index (CPI) data later in the day.
On Monday, the Swiss SVME - the Manufacturing Purchasing Managers' Index (PMI) climbed to 54.5 in April from 53.3 previously, beating expectations of 52.0. This marked a second straight month of expansion and the strongest reading since October 2022. Sentiment in Swiss manufacturing improved despite ongoing volatility in the Middle East.
The USD/CHF pair appreciates as the US Dollar (USD) advances on increased risk aversion following Iran’s attack on the United Arab Emirates (UAE). CNBC reported Monday that the UAE was targeted by Iranian drones and missiles, while the US said it destroyed Iranian boats in the Strait of Hormuz. US President Donald Trump warned that Iran would be “blown off the face of the earth” if it targets US ships protecting commercial vessels passing through the Strait.
Iran’s Foreign Minister Abbas Araghchi said the current situation in the Strait of Hormuz shows “clearly that there is no military solution to a political crisis.” “As talks are progressing with Pakistan’s gracious effort, the US should be cautious about being pulled back into a quagmire by ill-wishers. The same applies to the UAE,” Araghchi wrote in a post on X. “Project Freedom is Project Deadlock,” he added.
The Greenback strengthens as Treasury yields rise alongside expectations that the Federal Reserve (Fed) may need to lift interest rates to curb inflation. Minneapolis Fed President Neel Kashkari said Sunday that additional rate hikes cannot be ruled out, especially as inflation risks remain elevated due to higher energy prices linked to the Iran conflict.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
- DXY consolidates its gains registered over the past two days amid rising US-Iran tensions.
- Inflation fears fuel hawkish Fed bets and back the case for a further move up for the USD.
- Traders now look to the US macro data and Fed speak for some impetus later this Tuesday.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, holds steady around mid-98.00s during the Asian session on Tuesday, consolidating its gains registered over the past two days. Meanwhile, rising US-Iran tensions back the case for further appreciation, with bulls awaiting a sustained move beyond a technically significant 200-day Simple Moving Average (SMA) before placing fresh bets.
The fragile ceasefire between the US and Iran is on the brink of collapse after a severe flare-up of violence in the Persian Gulf on Monday. The United Arab Emirates (UAE) and South Korea reported strikes on ships in the vital channel. The UAE also said a fire broke out at the oil port of Fujairah following Iranian missile and drone attacks. Meanwhile, US President Donald Trump warned that Iran would be blown off the face of the earth if it attacks American vessels escorting ships through the Gulf under a new initiative called "Project Freedom".
This keeps geopolitical risks in play and continues to underpin the US Dollar's (USD) reserve currency status. Furthermore, the US-Iran standoff remains supportive of elevated Crude Oil prices, fueling inflationary concerns and bets for more hawkish central banks, including the US Federal Reserve (Fed). According to the CME Group's FedWatch Tool, the probability of a Fed rate hike by the end of this year currently stand at roughly around 35% compared to less than 10% last Friday. This further validates the positive outlook for the DXY.
Traders now look forward to the US economic docket – featuring the release of ISM Services PMI, JOLTS Job Openings, and New Home Sales data. Apart from this, speeches from influential FOMC members and further developments surrounding the Middle East crisis should provide some impetus to the DXY. This week's key focus, however, will be on the key US monthly employment details – popularly known as the Nonfarm Payrolls (NFP) report.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.54% | 0.54% | 0.36% | 0.25% | 0.80% | 0.55% | 0.49% | |
| EUR | -0.54% | -0.01% | -0.22% | -0.29% | 0.30% | 0.00% | -0.02% | |
| GBP | -0.54% | 0.00% | -0.19% | -0.28% | 0.32% | 0.02% | -0.02% | |
| JPY | -0.36% | 0.22% | 0.19% | -0.05% | 0.49% | 0.26% | 0.11% | |
| CAD | -0.25% | 0.29% | 0.28% | 0.05% | 0.57% | 0.32% | 0.26% | |
| AUD | -0.80% | -0.30% | -0.32% | -0.49% | -0.57% | -0.30% | -0.32% | |
| NZD | -0.55% | -0.00% | -0.02% | -0.26% | -0.32% | 0.30% | -0.04% | |
| CHF | -0.49% | 0.02% | 0.02% | -0.11% | -0.26% | 0.32% | 0.04% |
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).
- Silver price falls to around $72.85 in Tuesday’s Asian session.
- The precious metal maintains a negative outlook below the 100-day EMA, with bearish RSI momentum.
- The first upside barrier emerges at $74.45; the initial support level is seen at $71.15.
Silver price ( XAG/USD) tumbles to near $72.85 during the Asian trading hours on Tuesday. The white metal remains under selling pressure amid intensifying tensions in the Middle East. Reports of Iranian attacks on vessels in the Strait of Hormuz boost crude oil prices, fueling inflation fears.
This has led to expectations that the US Federal Reserve (Fed) may keep interest rates elevated for longer, making non-yielding assets like silver less attractive. Minneapolis Fed President Neel Kashkari said on Sunday that further rate hikes cannot be ruled out, particularly as inflation risks remain elevated due to rising energy prices linked to the Iran conflict.
Technical Analysis:
In the daily chart, XAG/USD keeps a bearish near-term bias as spot holds below the 100-day Exponential Moving Average (EMA) and the Bollinger Bands 20-day simple moving average (SMA). The Relative Strength Index (14) around 44 shows subdued bearish momentum rather than capitulation, suggesting downside pressure persists but without an oversold signal that would hint at an imminent, strong rebound.
On the topside, initial resistance is located at the 100-day EMA at $74.45, followed by the Bollinger midline at roughly $76.00, while the upper Bollinger Band near $80.85 marks a more distant cap in the event of a sharper short-covering bounce. On the downside, the May 4 low of $72.20 offers the first notable support. A decisive break below this level would expose the lower Bollinger Band at about $71.15.
(The technical analysis of this story was written with the help of an AI tool.)
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.
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