News Update for Wednesday, May 27th
Here’s a quick look at what’s happening today.
Major currency pairs are showing some fluctuations as we reach the midweek mark. Investors seem to be holding back from making significant moves, likely waiting for more clarity on a potential Memorandum of Understanding (MOU) involving the US and Iran. Later today, we’ll see the U.S. economic calendar include changes in the four-week average ADP employment, along with speeches from several Federal Reserve officials.
USD Price This Week
This week, the US dollar (USD) has displayed some movement against major currencies. It notably gained strength against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | 0.08% | 0.30% | 0.13% | 0.30% | 0.11% | 0.17% | |
| EUR | 0.01% | 0.12% | 0.35% | 0.14% | 0.27% | 0.14% | 0.17% | |
| GBP | -0.08% | -0.12% | 0.00% | 0.02% | 0.15% | 0.02% | 0.09% | |
| JPY | -0.30% | -0.35% | 0.00% | -0.19% | -0.03% | -0.20% | -0.15% | |
| CAD | -0.13% | -0.14% | -0.02% | 0.19% | 0.15% | -0.02% | 0.07% | |
| AUD | -0.30% | -0.27% | -0.15% | 0.03% | -0.15% | -0.13% | -0.11% | |
| NZD | -0.11% | -0.14% | -0.02% | 0.20% | 0.02% | 0.13% | 0.07% | |
| CHF | -0.17% | -0.17% | -0.09% | 0.15% | -0.07% | 0.11% | -0.07% |
This table illustrates the percentage changes in the US dollar against other major currencies. The left column lists the base currency, and the top row indicates the quote currency. Take, for example, USD against JPY; the displayed percentage reflects the change in value of the USD compared to JPY.
In the geopolitical arena, Iran’s Islamic Revolutionary Guards Corps (IRGC) have issued threats of retaliation following what the US described as “self-defense strikes” targeting Iranian missile sites. The IRGC characterized these actions as a violation of the ceasefire, claiming responsibility for downing a US drone and firing on fighter jets. However, there hasn’t been a formal declaration indicating that the ceasefire has ended. News suggests that negotiations between the US and Iran are still ongoing as they attempt to finalize a memorandum, addressing language points related to Iran’s nuclear agenda and sanctions.
In finance, the United States dollar index has held steady just above 99.00 after a slight gain the previous day. Meanwhile, futures for US stocks saw a rise of about 0.2% in early European trading.
The Reserve Bank of New Zealand (RBNZ) announced today that it would maintain its interest rates at 2.25%, which was widely anticipated. In their policy statement, the RBNZ noted that tensions in the Middle East are contributing to short-term inflation while hampering economic activity. An upward adjustment was made to the interest rate outlook for June 2027, changing from 2.62% to 3.07%. RBNZ Governor Anna Breman hinted in a press conference that a rate increase might be on the table in the future, contingent on upcoming data. In terms of currency moves, the New Zealand dollar against the US dollar was showing some upward momentum, sitting at 0.5870, reflecting roughly a 0.6% rise for the day.
On another note, recent statistics from Australia indicated that annual inflation, measured by changes in the Consumer Price Index (CPI), decreased to 4.2% in April from 4.6% in March, a lower figure than what the market had expected (4.4%). In reaction, the Australian dollar against the US dollar faced bearish pressure, ending the day down 0.4% at about 0.7140.
Gold saw a decline of more than 1% on Tuesday and continued to trade lower, falling below $4,500 in European markets this morning.
The euro against the U.S. dollar, after a minor loss the previous day, has been trading sideways, hovering just below 1.1650.
For the USD/JPY pairing, following a 0.25% increase on Tuesday, it remained stable around 159.30 today.
Lastly, the GBP/USD saw a significant drop of over 4% on Tuesday, wiping out gains from Monday. This pair struggled to find its footing on Wednesday, trading below 1.3450.
