1. USD Holds Firm on Hawkish Fed Expectations
- The US Dollar (USD) remains strong as traders reduce expectations for multiple Fed rate cuts in 2025.
- The DXY (Dollar Index) stays steady near 100.
- Fed officials emphasize patience, with the market now pricing in just one rate cut for the year (vs. earlier expectations of two).
2. EUR Weakness Persists as ECB Eyes More Easing
- The Euro (EUR) remains under pressure, trading near 1.0850 (EUR/USD).
- ECB signals openness to additional rate cuts, in contrast with the Fed’s more hawkish tone.
3. GBP Awaits UK Inflation Data (May 22)
- The British Pound (GBP) remains range-bound.
- Traders are awaiting UK CPI data; a stronger-than-expected reading could delay Bank of England rate cuts, supporting GBP in the short term.
4. Yen Near Intervention Levels (USD/JPY at 145.00)
- The Japanese Yen (JPY) remains weak, with USD/JPY hovering around 145.00.
- Japan’s Finance Ministry has reiterated concerns and warned about potential currency intervention.
5. Commodity Currencies Under Pressure
- AUD/USD slips to 0.6400 as the Reserve Bank of Australia maintains a neutral stance.
- The Canadian Dollar (CAD) weakens with USD/CAD reaching 1.3950 amid a decline in oil prices.
Gold & Bitcoin Prices (Corrected)
- Gold (XAU/USD): $2,230 – Supported by inflation fears and geopolitical tensions.
- Bitcoin (BTC/USD): $103,000 – Trading in a tight range as crypto sentiment remains mixed.
Note: Prices based on latest available data. Refer to live charts for real-time updates.
Upcoming Economic Events (Next 24 Hours)
- Fed Speakers: Hawkish remarks could further support the USD.
- German PPI (Apr): Forecasted at +0.3% MoM – May briefly impact EUR.
- US Treasury Yields: The 10-year yield is near 4.45%, supporting the USD outlook.
Market Sentiment
- A risk-off tone continues due to uncertainty surrounding Fed policy and ongoing geopolitical tensions.
- Gold remains firm as a safe haven. Bitcoin holds its range amid cautious investor sentiment.
