The US dollar holds its position, and the decoupling of Sino-US trade has begun to emerge!

The US dollar (USD) remained flexible against other currencies earlier on Tuesday after struggling to find demand on Monday. The European Economic Calendar will release business and consumer confidence data for April. Later in the day, market participants will closely monitor U.S. commodity trade gaps and JOLTS job openings data in March, as well as World Federation of Large Enterprises Consumer Confidence Index data in April.

U.S. Treasury Secretary Scott Becent said late Monday that the U.S. government is in contact with China, but added that Beijing needs to take the first step to easing the situation due to the trade imbalance between the two countries. Earlier on Tuesday, Chinese Foreign Minister Wang Yi said concessions and retreats would only make bullies more aggressive, but noted that dialogue helps resolve differences. After falling more than 0.6% on Monday, the U.S. dollar index clamped tightly above 99.00 during Tuesday's European session. Meanwhile, U.S. stock index futures rose slightly after major Wall Street indexes performed mixed earlier this week.

CBC News predicts that the Liberal Party led by Mark Carney is working to win enough seats in the House of Commons to form a government. In his first public address, Canadian Prime Minister Carney said he would sit down with U.S. President Donald Trump to discuss future economic and security relations between the two sovereign nations.

Basic foreign exchange market trends:

Euro/USD gained traction in half a day on Monday and closed above 1.1400 on the same day. The currency pair fell slightly in early trading on Tuesday,Counted around 1.1380. Data from Germany earlier in the day showed that the GfK consumer confidence index improved from -24.3 in April to -20.6 in May.

The bullish momentum of GBP/USD savings climbed to its highest level since March 2022 around 1.3450. The pair began to pull back during the European session, but remained above 1.3400.

The US dollar/yen rebounded after falling more than 1% on Monday and traded in accumulating around 142.30

Bulk market fundamentals:

The strengthening of the US dollar brought gold prices back 1% to $3,305. Brent crude fell 1% to $65.21 a barrel.

Analysis of major currency trends:

Euro: The intraday bias of the euro/dollar becomes neutral first. On the downside, breaking through 1.1306 will expand the correction from 1.1572. But strong support should be seen from the 38.2% retracement level of 1.0176 to 1.1572 at 1.1039 to curb downside space. On the bright side, breaking through 1.1572 will resume a larger upward trend.

GBP: The intraday bias of GBP/USD rose again, breaking through 1.3422. The focus is now on the key resistance level of 1.3433. A resolute breakthrough will confirm a greater recovery in the upward trend. The next near-term target is a forecast of 1.2706 to 1.3422 from 61.8% from 1.3232 to 1.3674. However, a breakout above the 1.3232 support will indicate that 1.3433 is rejected and further down to 55DEMA (now at 1.2978) and may be even lower.

Yen: The intraday bias of the US dollar/yen is currently neutral. On the plus side, above 144.02 will resume a rebound from 139.87. But as long as the 38.2% retracement level of 158.86 to 139.87 is established, the outlook for the ear period will remain bearish. On the downside, a firm breakthrough of 142.26 will indicate that the short-term bottom rebound from 139.87 has been completed, which is a correction action. In this case, 139.87 should be retested next.

The above content is all about "[XM Foreign Exchange]: The US dollar holds its position, and the decoupling of Sino-US trade begins to appear!" is carefully compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your transactions! Thanks for the support!

Share, it is as simple as a gust of wind that can bring refreshment, just like a flower that canBringing the fragrance as pure as the dusty heart gradually opened, I learned to share, sharing is actually so simple.