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EUR/USD depreciates as the US Dollar (USD) recovers its losses on technical correction.European Union warned that Trump’s new plan to double US tariffs on steel and aluminium could derail bilateral trade negotiations.US ISM Manufacturing PMI fell to 48.5 in May from 48.7 in April.EUR/USD edges lower after registering over 0.50% gains in the previous session, trading around 1.1420 during the Asian hours on Tuesday. The US Dollar (USD) recovers its ground on technical correction, despite growing concerns regarding stagflation in the United States (US). Traders will likely observe Eurozone Harmonized Index of Consumer Prices (HICP) data scheduled to be released…

Bank of Japan (BoJ) former board member Makoto Sakurai said on Tuesday that the Japanese central bank will probably halt its quarterly reductions in government bond purchases starting next fiscal year, per Bloomberg. The BoJ has been trimming its bond-buying by ¥400 billion ($2.8 billion) every quarter since last summer, but recent pressure from rising yields has likely made further cuts too risky.Market reactionAt the time of writing, the USD/JPY pair is trading 0.02% lower on the day to trade at 142.71. Bank of Japan FAQs The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the…

The Canadian Dollar rises for a third straight session, supported by higher oil prices and a weaker US Dollar.Canada’s manufacturing PMI improves slightly to 46.1 in May, while US factory activity shows deeper contraction.Investors price in a 75% chance that the Bank of Canada will hold rates at 2.75% on Wednesday, with market focus shifting to inflation risks.The Canadian Dollar (CAD) extends its winning streak against the US Dollar (USD) for a third consecutive day on Monday, supported by rising oil prices and sustained weakness in the Greenback.The latest PMI figures offered additional support to the Loonie, with Canada’s factory…

The Swiss Franc rises for the third straight session, with USD/CHF down nearly 0.70% intraday.Switzerland’s Q1 GDP beat forecasts with 0.5% QoQ growth, while April Retail Sales missed expectations, rising just 1.3% YoY.Traders are eyeing the US ISM Manufacturing PMI and Powell’s speech later on Monday,  Swiss CPI due on Tuesday.The Swiss Franc (CHF) extends its winning streak against the US Dollar (USD) for the third consecutive day on Monday, starting the week on a firm footing as a broadly weak US Dollar and cautious global sentiment continue to underpin demand for the safe-haven currency.At the time of writing, the…

The USD/CAD forecast suggests solid bearish sentiment. Canada’s GDP expanded by 2.2% in the first quarter, beating estimates of a 1.7% increase. Trump threatened to increase tariffs on aluminium and steel imports to 50%. The USD/CAD forecast suggests solid bearish sentiment as the Canadian dollar extends gains after an upbeat GDP report. At the same time, the dollar remains weak amid Trump tariff tensions. However, cooler-than-expected US inflation figures eased Fed rate cut expectations. –Are you interested to learn more about MT5 brokers? Check our detailed guide- The Canadian dollar strengthened on Friday after data revealed a better-than-expected performance in…

The Indian rupee strengthened on Monday, supported by weakness in the U.S. dollar and modest dollar inflows that helped the local currency begin the week on a positive note. The rupee closed at 85.3825 against the U.S. dollar, up 0.23% on the day. Inflows related to the rejig of a global equity index helped the rupee move higher in early trading while broad-based dollar weakness was an added tailwind, traders said.The dollar index fell below the 99 level amid concerns of a re-escalation in global trade tensions after U.S. President Donald Trump accused China of violating an agreement with the…

EUR/USD appreciates on Monday, with the US Dollar weighed by fresh tariff threats and a trade rift with China.Looming concerns about US fiscal stability keep undermining confidence in US assets. Euro bulls are likely to be challenged at the 1.1415 area.EUR/USD is trading with minor gains on Monday. The pair is moving near 1.1400 at the time of writing, with the US Dollar undermined by US President Donald Trump’s fresh tariff threats, a new trade rift with China, while debt concerns remain looming.Trump rattled markets late Friday, announcing to double tariffs on Steel and Aluminum imports, from 25% to 50%. Investors…

The Indian rupee is emerging Asia’s worst performer this quarter and may continue to lag peers as the central bank aims to avert a depletion in its foreign-exchange reserves, according to analysts. The Reserve Bank of India had dollar repayments of about $73 billion as of April as indicated by its net short forwards position, a measure of the amount of greenback it has agreed to sell at a future date, according to the central bank’s latest data. It has narrowed from an all-time high of $88.8 billion in February. That may pile pressure on the RBI to buy dollars to prevent…

Emerging market carry trades are taking off again, as currency volatility subsides amid signs President Donald Trump’s aggressive tariffs may not get fully enacted. An index of carry returns — for which a trader borrows in a low-yielding currency and then invests in another offering higher returns — hit a seven-year high in late May. Asset managers have boosted long positions in developing-nation currencies in recent weeks, with those on Mexico’s peso reaching a nine-month high, based on CME Group Inc. data.“Carry trades at this juncture, they do make sense,” said Ali Bora Yigitbasioglu, a senior investment manager for fixed income…

The rupee appreciated by 12 paise to 85.43 against the US dollar in early trade on Monday on the back of a weak American currency and favourable macroeconomic data that fuelled hope of a further reduction in key interest rate in the RBI’s upcoming monetary policy. However, a volatile equity market, outflow of foreign funds and higher crude oil prices amid global trade related uncertainties weighed on the Indian currency, according to forex traders. Analysts also said that market participants will be closely monitoring key macroeconomic announcements for further cues.RBI’s Monetary Policy Committee (MPC) will begin the deliberations on its…