Written by Steven Dooley, Head of Market Insights, and Shier Lee Lim, Lead FX and Macro Strategist
Tariff reprieve gives markets temporary relief
The greenback weakened as the US appeals court temporarily suspended Trump tariff blockade, though headline risk remains elevated heading into the weekend.
The USD index fell 0.5% to 99.30 as markets faded overnight gains following concerning US jobless claims data and downward Q1 GDP revisions.
The Japanese yen gained ground with USD/JPY sliding from 145.00 to 144.21 close.
In Europe, EUR/USD jumped to 1.1350 after weak US data, topping out near 1.1385 before settling at 1.1370 by close.
In Asia, SGD gains 0.18% while CNH was flat overnight.
Powell tells Trump policy path depends on data, outlook
The Fed said Chairman Powell and President Trump met at the White House on Thursday.
They discussed growth, employment and inflation with Powell stressing the Fed’s path depends on the data and outlook.
Powell said the Fed would set its path solely on objective, non-political analysis.
From technical lens for risk-sensitive currencies like AUD/USD, it is still hovering on 21-day EMA as key support.
Next key strong psychological handle to break will be the 0.6500 handle.
Trump and Japanese Prime Minister Ishiba speak
According to Japanese Prime Minister Ishiba, he held a 25-minute conversation with US President Trump. He claimed that they discussed economics, security, and diplomacy.
He said that before the G7 summit, he had offered to travel to the US.
Overall, he claimed that their desire to produce a win-win solution had not changed.
Looking at USD/JPY, it failed to break 21-day EMA resistance of 144.44, with 50-day EMA of 145.52 resistance barrier to break next.
Antipodeans strengthen on dollar weakness
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 26 – 30 May
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
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