Posted at 26 May 2026 / Categories Market Roundups
Market Roundup
•Canada Wholesale Sales (MoM) (Apr) 0.1%, 1.9% previous
•Canada Corporate Profits (QoQ) -2.0%,-1.6% previous
•US markets closed for Memorial Day holiday
Looking Ahead Economic Data (GMT)
• 06:00 Japan BoJ Core CPI (YoY) 1.7% forecast, 2.5% previous
•06:00 Japan Leading Index (MoM) (Mar) 1.3% forecast,1.3% previous
•06:00 Japan Leading Index (Mar) 114.5 forecast,113.3 previous
•06:00 Japan Coincident Indicator (MoM) (Mar) 0.3% forecast, -1.8% previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro advanced on Monday as easing concerns over the Iran conflict pressured the dollar and dragged oil prices lower. Market sentiment improved after U.S. President Donald Trump said over the weekend that negotiations on a framework to reopen the Strait of Hormuz were largely complete, while Iranian officials continued discussions with Qatar’s prime minister over a possible peace agreement.Despite the optimism, significant disagreements remain unresolved, highlighting the challenges of ending the three-month-long conflict. Attention is now turning to inflation figures from key euro zone economies due later this week, which investors will assess for any economic fallout from the war. Financial markets are currently pricing in two 25-basis-point interest rate hikes from the European Central Bank before the end of the year .Immediate resistance can be seen at 1.1648(May 25th high), an upside break can trigger rise towards 1.1693(SMA 20).On the downside, immediate support is seen at 1.1577(23.6%fib), a break below could take the pair towards 1.1561(Lower BB).
GBP/USD: Sterling gained ground on Monday as improving optimism surrounding a possible U.S.-Iran agreement boosted investor risk appetite and supported higher-risk currencies, including sterling. Market sentiment improved after reports suggested that a memorandum of understanding between the United States and Iran had been “largely negotiated,” raising hopes that tensions in the Middle East could ease in the coming weeks. The improved geopolitical outlook triggered a sharp decline in oil prices, with WTI crude falling nearly 4.9%, while equity markets rallied strongly. Despite the optimistic reaction, traders remain cautious as U.S. President Donald Trump later stated that Washington is in no hurry to finalize a deal, while Iranian officials accused the United States of continuing to block access to certain Iranian assets. These conflicting signals could keep volatility elevated. Immediate resistance can be seen at 1.3505(SMA 20), an upside break can trigger rise towards 1.3526(50%fib).On the downside, immediate support is seen at 1.3488(Daily low), a break below could take the pair towards 1.3382(61.8%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday as hopes rose of a deal to end the war in the Middle East and ahead of a speech by a Bank of Canada policymaker that could ?offer clues on the interest rate outlook. The market remained optimistic despite ?the U.S. and Iran playing down the chances of an imminent deal ?after U.S. President Donald Trump had said on Saturday that the two countries had largely ?negotiated a memorandum of understanding on an agreement that would reopen the Strait of Hormuz. Iran's top negotiator ?and its ?foreign minister were in Doha for talks with Qatar's prime minister on a potential deal with the U.S. to end ?the three-month-old war, an official briefed on the visit ?said.Domestic data ?had ?little impact a preliminary reading showed that wholesale trade ?rose 0.1% in April from March. Immediate resistance can be seen at 1.3833(Higher BB), an upside break can trigger rise towards 1.3875(38.2%fib).On the downside, immediate support is seen at 1.3801(50%fib), a break below could take the pair towards 1.3725(61.8%fib)
USD/JPY: The U.S. dollar dipped against yen on Monday as yen firmed on improving optimism surrounding a potential U.S.-Iran agreement. Trading conditions are expected to remain relatively thin due to the U.S. Memorial Day holiday and market holidays across parts of Europe, which could lead to reduced liquidity and potentially sharper price swings during the session. Yield differentials continue to play a major role in supporting the pair. The spread between Japanese government bond yields and U.S. Treasury two-year yields remains relatively wide, favoring the dollar, although the gap in longer-dated 10-year yields has narrowed somewhat. Markets are currently pricing in at least one additional interest rate hike this year from the Federal Reserve, with some investors even considering the possibility of further tightening rather than rate cuts. Meanwhile, the Bank of Japan is also expected to continue gradually normalizing policy, with markets anticipating a potential 25 basis point rate hike at its June meeting. Immediate resistance can be seen at 159.30(38.2%fib) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 158.23(SMA 20) a break below could take the pair towards 157.78(50%fib).
Equities Recap
European shares hit their highest in more than two months on Monday, recovering all its losses since the start of the Middle East conflict, lifted by growing expectations for a U.S.-Iran peace deal and enthusiasm for AI companies.
UK's benchmark FTSE 100 was last trading closed up at 0.22 percent, Germany's Dax closed up by 0.58 percent, France’s CAC closed up by 1.76 percent.
Commodities Recap
Gold rose more than ?1% on Monday as hopes of a peace deal to end the Iran war sent the dollar and oil prices lower, easing fears of inflation and higher-for-longer interest rates.
Spot gold was up 1.2% at $4,561.51 an ounce by 1319 GMT and U.S. gold futures for June delivery gained ?0.9% to $4,563.60. U.S. markets were closed for Memorial Day.
Oil prices fell nearly 7% on Monday as optimism grew that the United States and Iran were moving closer to a peace deal that would reopen the Strait of Hormuz, even though Washington and Tehran played down hopes for an imminent breakthrough.
Brent crude futures were down $7.24, or almost 7%, at $96.30 a barrel at 2:29 p.m. ET (1843 GMT) and U.S. West Texas Intermediate futures were down $6.30, or 6.5%, ?at $90.88.