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Forex Today: US Dollar rebounds after long weekend, focus shifts to mid-tier US data

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Forex Today: US Dollar rebounds after long weekend, focus shifts to mid-tier US data

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New update 2025.05.27 16:47
Forex Today: US Dollar rebounds after long weekend, focus shifts to mid-tier US data

update 2025.05.27 16:47

Here is what you need to know on Tuesday, May 27:

The US Dollar (USD) benefits from the improving risk mood early Tuesday, while trading conditions normalize following a three-day weekend in the US. The European Commission will publish business and consumer sentiment data for May. Later in the day, the US economic calendar will feature April Durable Goods Orders and May CB Consumer Confidence Index data.

US Dollar PRICE Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.32% 0.21% 0.56% 0.16% 0.56% 0.57% 0.36%
EUR -0.32% -0.13% 0.24% -0.16% 0.15% 0.16% 0.01%
GBP -0.21% 0.13% 0.39% -0.04% 0.26% 0.28% 0.10%
JPY -0.56% -0.24% -0.39% -0.38% -0.00% -0.06% -0.20%
CAD -0.16% 0.16% 0.04% 0.38% 0.37% 0.33% 0.14%
AUD -0.56% -0.15% -0.26% 0.00% -0.37% -0.08% -0.24%
NZD -0.57% -0.16% -0.28% 0.06% -0.33% 0.08% -0.21%
CHF -0.36% -0.01% -0.10% 0.20% -0.14% 0.24% 0.21%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

The USD Index edged lower on Monday as markets adopted a cautious stance to start the week. In the European morning on Tuesday, US stock index futures rise more than 1% on the day and the USD Index recovers toward 99.50, reflecting a positive shift in risk sentiment.

EUR/USD stays under modest bearish pressure and trades at around 1.1350 in the early European session. The data from Germany showed on Tuesday that the GfK Consumer Confidence Index for June edged slightly higher to -19.9 from -20.8. This reading came in worse than the market expectation of -19.7.

During the Asian trading hours, Bank of Japan (BoJ) Governor Kazuo Ueda acknowledged that they are close to the inflation target than any time in the last few decades but added that they are not quite there yet. "In light of growing uncertainties, particularly those related to trade policy, we have recently revised down our economic and inflation outlook," Ueda added. After posting small gains on Monday, USD/JPY stretches higher early Tuesday and trades above 143.50.

GBP/USD loses its traction and trades in negative territory below 1.3550 after posting marginal gains on Monday.

NZD/USD turns south on Tuesday and trades below 0.6000. The Reserve Bank of New Zealand (RBNZ) will announce monetary policy decisions in the Asian session on Wednesday. The RBNZ is expected to lower the policy rate by 25 basis points.

Gold struggles to find demand as a safe haven and continues to push lower toward $3,300 after posting small losses on Monday.

Risk sentiment FAQs

In the world of financial jargon the two widely used terms "risk-on" and "risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a "risk-on" market, investors are optimistic about the future and more willing to buy risky assets. In a "risk-off" market investors start to 'play it safe' because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.

Typically, during periods of "risk-on", stock markets will rise, most commodities - except Gold - will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a "risk-off" market, Bonds go up - especially major government Bonds - Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.

The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are "risk-on". This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.

The major currencies that tend to rise during periods of "risk-off" are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world's reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them - even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.


Date

Created

 : 2025.05.27

Update

Last updated

 : 2025.05.27

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