Analysis

TradingKey - The Swiss Franc faces counteracting bullish and bearish pressures. Given these dynamics, the USD/CHF pair is likely to trade within a range in the near term. In terms of investment strategy, investors should closely monitor the 0.78 low and 0.84 high of this currency pair. 

TradingKey - On 17 July 2025, the Eurozone's June Harmonised Inflation data was released, aligning with market expectations. The headline HICP rose slightly from 1.9% in May to 2.0%, while core HICP remained steady at 2.3%.

Tradingkey - The minutes of the Fed meeting last night showed that there were differences among Fed officials on the outlook for interest rates, mainly due to different expectations on how tariffs will affect inflation.

While the pound has room to rise against the dollar in the near term, the UK’s economic risks and medium-term bearish outlook suggest investors should exercise caution when chasing pound gains.

TradingKey - We anticipate a high likelihood of the Japanese yen appreciating in the short term (0-3 months). This outlook is driven by two key factors: First, the diverging monetary policies of the U.S. and Japan (Federal Reserve rate cuts paired with Bank of Japan rate hikes) will support the...

TradingKey - On 1 July 2025, the Eurozone published its June inflation figures, which met market consensus: headline CPI edged up from 1.9% in May to 2.0%, while core CPI held steady at 2.3%.

TradingKey - Although the Iran-Israel conflict has subsided, a re-escalation could drive oil prices higher in the short term. As a major resource-exporting nation, the Canadian dollar (CAD) is closely tied to oil prices—higher oil prices typically strengthen the CAD.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, attracts some sellers to around 98.55 during the early European trading hours on Wednesday.

Following the AUD/USD exchange rate increase in April and May this year, we believe there remains upside potential for the currency pair in the short term (0-3 months).

The Japanese Yen (JPY) advances to over a one-week high against its American counterpart during the Asian session on Friday and draws support from a combination of factors.

Tradingkey - The European Central Bank cut interest rates by 25 basis points last week, the eighth rate cut since June last year.

The Australian Dollar (AUD) edges lower against the US Dollar (USD) on Thursday, extending its losses for the second consecutive day. However, the AUD/USD pair may appreciate as softer US inflation data have boosted bets of a Federal Reserve (Fed) rate cut in September.

BERN, June 6 (Reuters) - Switzerland announced reforms on Friday to make its biggest bank UBS UBSG.S safer and avoid another crisis, hampering the global ambitions of a lender whose financial weight eclipses the country's economy.

TradingKey - Inflation pressure in Japan is on the rise, with data showing that Japan's basic wages increased by 2.2% year-on-year in April, up from a revised 1.4% in March.

TradingKey – During Donald Trump’s second term in office, efforts to reduce trade deficits have clashed with attempts to preserve the dollar’s global dominance, leading to conflicting narratives around whether the administration favors a strong or weak dollar.

TradingKey - The latest International Monetary Fund (IMF) report, "World Economic Outlook," shows that the UK economy has demonstrated unexpected resilience, leading to an upward revision of the GDP growth forecast for 2025 from 1.1% to 1.2%.

The AUD/JPY cross attracted some sellers after the Reserve Bank of Australia (RBA) meeting Minutes showed that the central bank had considered an outsized 50 basis point cut in May.

Tradingkey - The US economic performance has been lackluster, with the first-quarter economy contracting at an annualized rate of 0.2%, which was worse than expected, primarily due to a surge in imports before tariffs and weak consumer spending.

LONDON, May 28 (Reuters) - If the euro supplants the dollar as the world's main reserve currency, Europe might lose some currency competitiveness - but the related capital flows it's seeking more than compensate.

In the short term (0-3 months), we expect GBP/USD to rise slightly. Here, we emphasize “rising + slight”.