Trading news

OCBC strategists Sim Moh Siong and Christopher Wong report that Asian FX has softened again as Oil prices jump on renewed Middle East tensions and concerns over the Strait of Hormuz.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Japanese Yen (JPY) is underperforming, with USD/JPY modestly higher and clearing the low 157s in thin holiday trade. Wider yield spreads and lingering intervention risk keep price action erratic.

Silver (XAG/USD) trades lower on Tuesday, hovering around $73.05 at the time of writing, down 0.65% on the day, as the white metal struggles to gain traction despite a modest pullback in the US Dollar (USD).

Royal Bank of Canada (RBC) economist Nathan Janzen notes that higher Oil and Gold exports pushed Canada’s trade balance back into surplus in March, even as non-energy exports remain under pressure from U.S. tariffs.

The Euro (EUR) trades on the front foot against the US Dollar (USD) on Tuesday as a mild pullback in Oil prices pushes US Treasury yields lower, adding pressure on the Greenback. At the time of writing, EUR/USD is trading around 1.1701, rebounding from an intraday low of 1.1676.

US equities are trading higher on Tuesday as crude prices ease and a wave of stronger-than-expected first-quarter earnings reinforces the thesis that profits, not policy, are doing the heavy lifting in this market.

New Zealand GDT Price Index: 1.5% vs -2.7%

The AUD/USD pair is surging near the 0.7190 price zone, building upside momentum after the Reserve Bank of Australia (RBA) delivered a fresh rate hike. Markets now shift their focus toward what comes next in the policy path.

The Pound Sterling rises by over 0.20% as risk appetite improves. The ceasefire between the US and Iran, although fragile, is holding, pushing oil prices lower, the US Dollar lower, and US equities higher. Hence, the risk-sensitive GBP/USD pair trades at 1.3560, with buyers eyeing 1.3600.

Standard Chartered’s Nicholas Chia notes the Reserve Bank of Australia (RBA) lifted the cash rate to 4.35% in an 8-1 decision, but Governor Bullock later softened the hawkish tone. The bank’s baseline is for no further hikes, though risks lean toward another move in H2 if growth stays above trend.

ING’s Warren Patterson and Ewa Manthey report that European gas benchmark TTF has climbed to its highest level since early April following renewed tensions in the Persian Gulf.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Euro (EUR) is flat versus the US Dollar (USD), with EUR/USD stuck in a range as markets weigh conflict-related inflation risks and a hawkish European Central Bank (ECB) stance.

Commerzbank’s Barbara Lambrecht notes that since the Iran war began, Oil has been the main driver of Gold, via inflation and rate expectations. Gold briefly stabilized near USD 4,600 per ounce before slipping below USD 4,550 on stronger US data and higher Oil.

GBP/JPY edges higher on Tuesday as the Japanese Yen tumbles across the board, with the impact of Tokyo’s intervention fading and attention shifting back to ongoing tensions in the Middle East. At the time of writing, the cross is trading around 213.90, up nearly 0.53% on the day.

Rabobank’s Senior FX Strategist Jane Foley notes the US Dollar Index (DXY) is trading near key moving averages, with markets reluctant to extend USD longs despite renewed Middle East tensions.

The number of job openings in the United States (US) printed at 6.866 million in March, down from the revised 6.922 million in February, the US Bureau of Labor Statistics (BLS) reported in its Job Openings & Labor Turnover (JOLTS) report on Tuesday.

France Budget Balance dipped from previous €-32.12B to €-42.9B in March

Brown Brothers Harriman’s (BBH) Elias Haddad reports that the Australian Dollar (AUD) fell after the Reserve Bank of Australia (RBA) delivered a widely expected 25 bps hike to 4.35% and signalled a data‑dependent pause.

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is slightly firmer with USD/CAD holding near prior ranges. A softer US Dollar (USD) and firmer risk appetite are seen as mildly supportive for the CAD, while fair value has shifted lower toward 1.3424.

United States RealClearMarkets/TIPP Economic Optimism (MoM) above forecasts (42) in May: Actual (42.6)