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Forex Today: US Dollar stays neutral as Fed’s Waller reinforces inflation commitment

The US Dollar Index (DXY) remains neutral near the 100.90 level at the end of the American session on Monday as investors digest hawkish comments from Federal Reserve (Fed) Governor Christopher Waller and resilient United States (US) services data.

Australian Dollar rises as softer Fed bets offset resilient US data

The Australian Dollar (AUD) extends its rally into a third straight trading session, up 0.25% on Monday, as investors adjust their interest rate expectations for the Federal Reserve (Fed) following a soft US jobs report last week.

Chinese Yuan: Depressed positioning offers re-entry – BNY

BNY’s Geoff Yu stresses that Chinese equities and Chinese Yuan (CNY) remain heavily under-owned versus APAC (Asia-Pacific) peers, with cross-border holdings at very low levels.

Indonesia: Deficit raises external risk questions – Societe Generale

Societe Generale’s Kunal Kundu analyzes Indonesia’s May 2026 trade data, highlighting the first deficit since the pandemic and a record Oil and Gas shortfall.

New Zealand Dollar pressured by hawkish Fed tone

NZD/USD trades under pressure near the 0.5700 level as the US Dollar (USD) remains supported by hawkish-leaning comments from Federal Reserve (Fed) Governor Christopher Waller and resilient United States (US) services data.

Gold slips as firm US yields cap post-NFP rebound

Gold (XAU/USD) price retreats by some 0.50% on Monday as the Greenback remains steady despite traders repricing a less hawkish Federal Reserve (Fed) following last Thursday’s softer-than-expected jobs report. The XAU/USD pair trades at $4,153, down 0.50%.

United States Dollar Index trims gains as Fed hike bets fade

The US Dollar Index (DXY) trims its gains on Monday after opening the week on a firmer note, as traders await greater clarity on the Federal Reserve's (Fed) interest rate path before placing fresh directional bets.

Crude Oil runs out of war and out of buyers

West Texas Intermediate (WTI) has spent three weeks handing back what the war spent three months building, and the tape now reads as though February never ended.

New Zealand Dollar: Hawkish RBNZ risks and range trading – Rabobank

Rabobank’s FX Strategy team discusses the New Zealand Dollar (NZD) ahead of the July 8 Reserve Bank of New Zealand (RBNZ) meeting, where consensus and the bank expect a 25 bp hike to 2.5%.

Dow Jones Industrial Average makes history, then thinks better of it

The Dow Jones Industrial Average (DJIA) finally crossed 53,000 on Monday, spiking to a record just above the handle in the opening minutes and holding it for roughly the length of the ceremony that produced it.

Gold consolidates below $4,200 as traders reassess Fed interest rate outlook

Gold (XAU/USD) consolidates losses on Monday as a firmer US Dollar (USD) and mild profit-taking cap gains following last week's rebound from a more than seven-month low of $3,941.

Swiss Franc dips amid unemployment surprise and strong US Dollar

USD/CHF gains 0.37% on Monday, trading around 0.8060 at the time of writing, as the US Dollar (USD) rebounds despite slightly softer expectations for further monetary tightening by the Federal Reserve (Fed).

Japanese Yen falls toward multi-decade lows on US Dollar strength

USD/JPY trades around 162.30 on Monday at the time of writing, up 0.58% on the day, extending its rebound after last week's pullback.

British Pound holds range as USD strength meets Fed doubts

The Pound Sterling (GBP) steadies during the North American session on Monday as the week begins in a risk-off mood, evidenced by overall US Dollar (USD) strength in the FX markets, despite soft jobs data last week that trimmed hawkish Federal Reserve (Fed) bets for the rest of the year.

British Pound: Range-bound against US Dollar with steady BoE expectations – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret note GBP/USD near 1.3338 is steady versus the US Dollar (USD) and outperforming on crosses despite weak construction Purchasing Managers' Index (PMI) data.

Euro weakens as markets reassess Fed and ECB rate outlook

The Euro (EUR) trades on the back foot against the US Dollar (USD) on Monday as investors return after the extended US Independence Day weekend. At the time of writing, EUR/USD is trading around 1.1421, down 0.12% on the day.

ECB’s Schnabel: Current shock cannot simply be looked through

European Central Bank (ECB) Executive Board member Isabel Schnabel said on Monday that the Eurozone is not back to a pre-war situation, even after the recent decline in Oil prices.

Fed’s Waller: Forward guidance can be “valuable tool” but may become a hindrance

Federal Reserve (Fed) Governor Christopher Waller said on Monday that forward guidance can strengthen the impact of monetary policy when used properly, but warned that it can also become problematic if it limits policymakers’ flexibility.

Australian Dollar trades sideways after softer Australian inflation

AUD/USD trades with a cautious tone, sideways near the 0.6930 level on Monday after Australian inflation data showed further easing price pressures, while mixed United States (US) services figures kept the US Dollar (USD) broadly supported but without strong momentum.

Chinese Yuan: Sideways trade within defined band against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang indicates USD/CNH has seen a slight softening in momentum but remains confined to a narrow intraday band of 6.7800–6.7930. Over the next 1–3 weeks, the bank expects range trading between 6.7750 and 6.8080 as earlier Dollar strength has faded.

LatAm FX: Rotation favors equities and carry – BNY

BNY’s Geoff Yu notes that crowded exposure to Latin American (LatAm) bonds is unwinding as higher U.S. yields drive a domestic repricing of real-rate risks. The bank sees flows rotating toward regional equities and maintains a constructive tactical view on Latin American carry.

Silver Price Forecast: XAG/USD struggles below key SMAs despite easing Fed hike bets

Silver (XAG/USD) pauses a four-day winning streak on Monday as buyers take a breather following last week's 5.55% rally. A firmer US Dollar (USD) is also capping the precious metal's upside.

Canadian Dollar dips despite rising Oil prices amid firm US Dollar

USD/CAD extends its advance for a second consecutive day and trades around 1.4230 at the time of writing on Monday, up 0.20% on the day.

Euro: Soft tone against US Dollar with stable ECB expectations – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret note EUR/USD around 1.1418 trading softer against the US Dollar, though mid-pack within G10. Euro area Producer Price Index (PPI) and retail sales were in line with expectations, while German factory orders surprised higher.

Australian Dollar retreats toward 0.6900 amid renewed signs of cooling inflation

The Australian Dollar (AUD) is confronting a notable shift in market momentum as fresh domestic data points to cooling inflation.

United States: Sideways growth, sticky inflation – TD Securities

TD Securities projects US output growth to move sideways in 2026, slightly below trend, with Real Gross Domestic Product (GDP) at 2.0% Q4/Q4 and unemployment around 4.3%. The Iran conflict and an oil shock pose stagflationary risks, while AI and high-income consumers support demand.

Germany: Gradual industrial recovery prospects – Commerzbank

Commerzbank’s Dr. Marco Wagner notes that German manufacturing orders rose 1.9% in May, or 1.0% excluding large orders, pointing to an upward trend. He argues this supports a moderate recovery in German industry and a slight recovery in the broader German economy after a likely small Q2 decline.

US ISM Services PMI eases to 54 in June

Economic activity in the US service sector lost some momentum in June, with the ISM Services PMI easing to 54.0 from 54.5 in the previous month, matching analysts' expectations.

Canadian Dollar: Consolidation against US Dollar with limited gains – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret describe USD/CAD around 1.4215 as consolidating, with the Canadian Dollar retaining a soft undertone despite narrower US–Canada front-end spreads.

British Pound climbs to January 2008 high against Japanese Yen despite intervention risk

GBP/JPY edges higher on Monday, climbing to levels last seen in January 2008 as the Japanese Yen (JPY) remains under pressure across the board. The Yen resumed its decline after a brief pullback last week, with USD/JPY climbing back to its highest level in four decades.

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