Morning brief for May 25

Morning brief for May 25

2019-11-11 • Updated

The US dollar dropped against many major currencies on less hawkish FOMC meeting minutes. Overall Fed’s policymakers seemed content to hike rate at the coming meeting in June if US economic information came in about in line with their expectations. The minutes also signaled that policymakers prefer a gradual reduction in their massive balance sheet. The Committee proposed the central bank set a cap on the amount of bonds that would be allowed to run off each month, initially determining it at a low level and then raising gradually every three months. Right after the FOMC minutes the 100-year US Treasury yield declined to 2.255% from Wednesday’s high at 2.295.

The euro rose higher to 1.1235 despite passive comments from ECB’s members which bring into question the recent long positioning. Solid performance in EZ economic activity and risk reduction after the French presidential election might force ECB to shift their language at the upcoming meeting in June. Yesterday ECB’s policymakers released their latest Financial Stability report along with the ECB President Draghi’s speech in which he downplayed the side effects from negative rates and claimed that there is no reason to deviate further from the indications he provided in his April introductory statement. The yesterday’s recovery from the 1.167 low is lacking in momentum, and the odds for extension towards 1.3000 are still not high. Most likely, the pair will be trading sideways within 1.1160 – 1.2670 levels.

Aussie came temporarily unhinged on the China’s credit rating downgrade as market participants use Aussie as a proxy for China risk. Then, it managed to recoup some of its losses amid broad USD weakening. In today’s Tokyo session, the pair slipped few points. Now, the AUD/USD currency pair is trading around 0.7500 mark. As long as 0.7430 is not touched we still anticipate a move higher towards 0.7560. 

USD/JPY hardly moved on the session. It’s now at 111.65 and expected to trade sideways in the short-term.  Kiwi rose to 0.7050 in the course of the Asian session. A further upsurge towards key resistance at 0.7090 is not ruled out.

USD/CAD sunk to 1.3390 level after the Bank of Canada was more upbeat about the economy than traders had expected. Brent oil futures were trading higher at $54.45 ahead of the start of the OPEC meeting in Vienna. Most likely OPEC producers will extend their agreement into the first quarter in attempt to drain persistent global supply. As we have OPEC meeting on the agenda, the oil prices might rise higher  and send USD/CAD lower towards the support at 1.3380, or even lower towards 1.3350.


What Can Drive Oil below $90 a Barrel?
What Can Drive Oil below $90 a Barrel?

The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.

Latest news

Will USDJPY slide lower in 2023?
Will USDJPY slide lower in 2023?

Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?

BoC Rates Could Alter The Trend on USDCAD and others
BoC Rates Could Alter The Trend on USDCAD and others

Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.

MSFT faces gloomy forecasts ahead of earnings report
MSFT faces gloomy forecasts ahead of earnings report

In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera