Posted at 26 May 2025 / Categories Market Roundups
Market Roundup
• Canada Manufacturing Sales (MoM) (Apr) -2.0%, -1.4% previous
• French 12-Month BTF Auction 1.913%, 1.947% previous
• French 3-Month BTF Auction: 1.999%, 2.042% previous
• French 6-Month BTF Auction 1.982%,2.011% previous
Looking Ahead Economic Data(GMT)
• 01:30 Chinese Industrial profit YTD (Apr) 0.8% previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Forecast
EUR/USD: The euro strengthened on Monday as the U.S. dollar continued its decline, pressured by President Donald Trump’s abrupt policy reversals and ongoing fiscal concerns tied to his expansive spending and tax-cut legislation. On Sunday, Trump announced a delay in imposing tariffs on the European Union until July 9, following a phone call with European Commission President Ursula von der Leyen, who requested more time for negotiations. The new deadline marks the end of a 90-day pause on the tariffs originally threatened on April 2, dubbed “Liberation Day” by Trump. The swift reversal just two days after the initial threat highlights the unpredictability of U.S. trade policy. The euro climbed as much as 0.55% to reach $1.1418 for the first time since April 29. It was last up 0.36% on the day at $1.1390. Immediate resistance can be seen at 1.1436(Higher BB), an upside break can trigger rise towards 1.1450(Higher BB).On the downside, immediate support is seen at 1.1535(23.6%fib), a break below could take the pair towards 1.1279(May 26th low).
GBP/USD: The British pound strengthened on Monday after U.S. President Donald Trump extended the deadline for trade talks with the European Union, easing near-term investor concerns over his unpredictable trade policies.Trump postponed the planned 50% tariffs on EU imports from June 1 to July 9, allowing more time for negotiations with the 27-nation bloc. The move follows a series of sweeping tariffs introduced since April 2, and subsequent pauses that have fueled global uncertainty.While market sentiment had recently stabilized after temporary U.S. agreements with the UK and China, Trump’s latest shift served as a reminder that trade tensions remain unresolved. Sterling advanced as much as 0.38% to scale its highest level since February 2022.Immediate resistance can be seen at 1.3582(23.6%fib), an upside break can trigger rise towards 1.3650(Higher BB).On the downside, immediate support is seen at 1.3520(Daily low), a break below could take the pair towards 1.3396(38.2%fib).
USD/CAD: The Canadian dollar held steady against the U.S. dollar on Monday after earlier climbing to a seven?month peak, buoyed by fading global trade tensions and data suggesting that speculators were increasingly exposed to a potential short squeeze. On the data front, Canadian factory sales fell 2% in April from March, weighed by lower sales in the petroleum and coal product subsector and the motor vehicle industry group, a preliminary estimate showed.First-quarter gross domestic product data is due on Friday, which could guide expectations for next week's Bank of Canada interest rate decision. Economists expect growth to slow to an annualized rate of 1.7% from 2.6% in the previous quarter. The loonie was trading nearly unchanged at 1.3734 per U.S. dollar. Earlier, it touched its strongest intraday level since October 9 at 1.3687. Immediate resistance can be seen at 1.3856 (38.2%fib), an upside break can trigger rise towards 1.3976 (50%fib).On the downside, immediate support is seen at 1.3696(23.6%fib), a break below could take the pair towards 1.3622(Lower BB)
USD/JPY: The U.S. dollar edged up against the yen on Monday, supported by optimism over a potential U.S.-Japan trade deal and growing expectations of further Bank of Japan (BoJ) rate hikes, keeping investors cautious. Japan’s chief tariff negotiator, Ryosei Akazawa, is set to return to Washington on May 30 for a fourth round of trade talks just one week after concluding his current visit—yet a significant gulf remains as the U.S. resists rolling back auto and steel tariffs while Japan continues to press for their elimination. Meanwhile, the Bank of Japan stands out among major central banks by signaling a shift toward tighter policy, planning both rate increases and a gradual taper of bond purchases. Looking ahead, markets will focus on Japan’s upcoming inflation data later this week as investors seek clues on the BoJ’s next policy moves. Immediate resistance can be seen at 144.45 (38.2%fib)an upside break can trigger rise towards 145.00(Psychological level) .On the downside, immediate support is seen at 142.97(23.6%fib)a break below could take the pair towards 141.30(Lower BB)
Equities Recap
European stocks rallied on Monday, recouping the previous session’s losses as investors welcomed President Trump’s decision to postpone his threatened 50% tariffs on EU imports..
UK's benchmark FTSE 100 closed down by 0.24 percent, Germany's Dax ended up by 1.68 percent, France’s CAC finished the day up by 1.21 percent.
Commodities Recap
Gold prices tumbled nearly 1% on Monday after President Trump abandoned his plan to impose 50% tariffs on European Union imports from June 1, dampening demand for the safe?haven metal amid eased trade?policy fears.
Spot gold slipped 0.8% at $3,332.04 an ounce by 1250 GMT. U.S. gold futures fell 1% to $3,331.90.
Oil prices held steady on Monday after eight OPEC+ members—who had pledged additional voluntary output cuts—announced they will convene on May 31, one day earlier than originally scheduled.
Brent crude futures settled down four cents at $64.74 a barrel, while U.S. West Texas Intermediate crude last traded at $61.53 a barrel, unchanged from the prior day's session.