Forex news

The US dollar is testing support and the NFP leading indicators point to a slightly above expectation reading this month, with headline job growth potentially coming in somewhere in the 200-250K range

It was the Japanese yen which stole the show after Jerome Powell’s press conference, with USD/JPY falling over 450 pips on another suspected BOJ intervention.

US dollar is in sharp focus as investors' attention turn to FOMC policy decision next and NFP data on Friday, after the ISM Manufacturing PMI and JOLTS jobs opening data disappointed expectations.

The US dollar has rallied on anticipation of a more hawkish Fed ahead of today's meeting. So we take a look at key levels for EUR/USD and USD/JPY.

US dollar traders will be watching Fed Chairman Powell’s press conference and any decisions about the central bank’s balance sheet runoff as potential market-movers for the US Dollar Index (DXY)

EUR/USD boosted by German and Eurozone GDP expansion, although the ECB is still likely to cut in June even if the pace of subsequent cuts may be slower. US data highlights include FOMC, NFP and ISM surveys this week. Meanwhile EUR/USD technical analysis point to potential rise to $1.08.

Despite the MOF's best attempts, USD/JPY is holding above 155 - a level traders are clearly watching. AUD/USD shows the potential to extend gains into 66c, but having risen for 6 days already then perhaps the upside potential it limited.

Welcome to another edition of Forex Friday, a weekly report in which we highlight selected currency themes. In this week’s report, we will discuss the Japanese yen, US dollar and look ahead to the next week.

Diverging interest rate expectations between the Federal Reserve and the rest of the developed world have been THE biggest story of the year for FX traders (USD/JPY in particular), and Friday’s Core PCE report will be the next major test to determine if that trend will carry over into Q2

Disparity between US and Eurozone PMI data bodes well for euro. For now, the US dollar has rebounded slightly ahead of GDP and core PCE data. EUR/USD technical analysis shows rates testing a pivotal area circa $1.07 - a potential break above here would be ideal for the bulls.

The US 2-year bond yield remains support, which is capping the yield at 5% and weighed on the US dollar. And that helped AUD/USD rise for a second day ahead of a key AU CPI report.

It has been a risk-on session so far, with equity indices rising sharply for the second consecutive day ahead of Tesla’s earnings tonight and other big tech companies reporting this week. Also on the rise today have been markets such as crude oil, the EUR/USD and even the GBP/USD. Sentiment was lifted by stronger PMI data from the services sector in Europe and UK, alleviating growth concerns even if the manufacturing sector PMI continued to remain depressed.

The US dollar rally has stalled, and the longer is fails to extends its gains the greater the odds of a pullback. For today, flash PMIs have placed GBP/USD and EUR/USD into focus.

GBP/USD remains in “sell rallies” mode, so bullish readers will want to be nimble against a broader backdrop that favors more downside from here.

US GDP, Core PCE and BoJ policy are among the risk events this week for the USD/JPY currency pair, as the focus turns to sticky inflation and elevated interest rates narrative from Middle East concerns for now. USD/JPY technical analysis point to a potential rally above 155.00.

EUR/USD futures traders are on the cusp of flipping to net-short exposure, and managed funds are increasing their short exposure to gold and crude oil.