Trading news

The Mexican Peso erases some of its earlier gains and drops some 0.13% as the USD/MXN pair advances after the Bank of Mexico (Banxico) cut rates and warned that the easing cycle has ended. The exotic pair trades at 17.27 after testing a low of 17.19.

The NZD/USD pair is trading with a softer tone near the 0.5940 region on Friday, pressured by cautious market sentiment as investors continue tp react to rapidly changing headlines surrounding the potential peace agreement between the United States (US) and Iran.

OCBC strategists Sim Moh Siong and Christopher Wong describe USD/IDR as easing from overbought territory as hopes of a US–Iran deal support sentiment. Bank Indonesia’s (BI) tighter rules on cash FX purchases and comments that the Rupiah (IDR) is undervalued back stabilization efforts.

DBS Group Research economist Ma Tieying expects the Bank of Korea (BoK) to keep its base rate at 2.50% at the May 28 meeting, but now projects a single 25 bps hike in 3Q 2026 to 2.75%.

The US Dollar Index (DXY) is trading with a softer tone near the 98.10 area as markets continue reacting to rapidly shifting headlines surrounding the potential peace agreement between the United States (US) and Iran.

Gold (XAU/USD) edges higher on Thursday during the North American session amid heightened tensions in the Middle East due to rumors that the US is looking to restart Project Freedom. At the time of writing, XAU/USD trades at $4,705 after reaching a daily high of $4,764.

UOB economists Enrico Tanuwidjaja and Sathit Talaengsatya argue that Thailand’s sharp April Consumer Price Index (CPI) jump is driven mainly by energy and selective food pass-through rather than broad demand-led reflation.

Banco de Mexico —also known as Banxico—reduced borrowing costs by 25 basis points on Thursday, as expected by market participants, from 6.75% to 6.50%.

Argentina Industrial Output n.s.a (YoY) increased to 5% in March from previous -8.7%

United States Consumer Credit Change came in at $24.86B, above expectations ($12.5B) in March

Mexico Banxico Interest Rate Decision in line with forecasts (6.5%)

Silver (XAG/USD) trims part of its earlier gains on Thursday as geopolitical headlines from the Middle East continue to stir volatility across financial markets.

Standard Chartered economists Jonathan Koh and Edward Lee argue that the Bangko Sentral ng Pilipinas (BSP) will stay hawkish despite softer growth in the Philippines.

The morning belonged to the deal: Asia had ripped overnight, with the Nikkei 225 clearing 62,000 for the first time on a session that gained north of 5%, and US futures came in primed for another leg of the Iran ceasefire trade.

EUR/USD eases from intraday highs on Thursday as evolving geopolitical developments surrounding tensions in the Middle East help the US Dollar (USD) and Oil prices recover some losses after recent weakness.

DBS Group Research’s Radhika Rao highlights Bank Indonesia’s latest steps to manage FX volatility and support the Indonesian Rupiah. The central bank has tightened documentation thresholds for Dollar purchases, continued bond buying and enabled selected dealers to access offshore NDFs.

Crude Oil markets staged a sharp intraday reversal on Thursday, with WTI futures briefly tagging lows below $90 a barrel before clawing back above $93, while Brent slid toward $95 before recovering to reclaim the $100 handle.

Mary Daly, President of the Federal Reserve (Fed) Bank of San Francisco, said on Bloomberg TV on Thursday that she doesn’t see evidence that longer-run inflation expectations are up. She also claimed that wage rises are consistent with the overall 2% inflation.

OCBC strategists Sim Moh Siong and Christopher Wong see USD/SGD consolidating as markets await clarity on a potential US–Iran deal. The pair has slipped slightly on tentative optimism, but Iran has yet to respond and a 48‑hour deadline looms, keeping some caution in place.

The New York Fed released its Survey of Consumer Expectations for April, which showed that American households expect prices to rise in the short term. For the medium- to long-term horizon, inflation expectations were unchanged.