Dollar Gains on Strong U.S. Confidence Data (05.28.2025)

EUR/USD Slips Despite EU Tariff Delay Extension

EUR/USD traded near 1.1310 in Asia on Wednesday, down for a second day as the dollar rose on lower Treasury yields and strong US data. Yields fell after Japan signaled possible cuts in debt issuance, with US 10- and 30-year yields at 4.46% and 4.97%, respectively.

The dollar gained further as May consumer confidence rose to 98.0 from 86.0. April durable goods orders dropped 6.3%, less than the expected 7.9% fall. Markets await the FOMC minutes for policy signals.

The euro found support as Trump extended the EU tariff deadline to July 9, with Brussels fast-tracking talks. Trump welcomed the move as a "positive event."

Resistance is at 1.1425, with additional levels at 1.1460 and 1.1580. Support begins at 1.1260, followed by 1.1100 and 1.1050.

Yen Drops as BOJ Comments and Auction Worries Weigh

The Japanese yen fell beyond 144.5 per dollar on Wednesday, marking its third straight session of losses amid growing policy uncertainty and bond market shifts. Bank of Japan Governor Ueda pointed to U.S. trade negotiations as contributing to economic uncertainty, while Finance Minister Kato emphasized close monitoring of bond markets. The yen and yields declined on Tuesday following reports of a potential reduction in super-long bond issuance after weak demand at a recent 20-year auction. Markets now turn their focus to the upcoming 40-year bond sale.

Resistance stands at 148.60, with further levels at 149.80 and 151.20. Support is found at 139.70, then 137.00 and 135.00.

Gold Holds Firm as Dollar Strength and Sentiment Weigh

Gold held near $3,300 per ounce on Wednesday after Tuesday’s selloff, pressured by a stronger US dollar and improved risk sentiment. The dollar rose as May consumer confidence rebounded sharply from a near five-year low, reflecting a brighter outlook for the economy and labor market. President Trump’s delay of EU tariffs also eased trade tension concerns. Meanwhile, Fed official Neel Kashkari urged holding rates steady until the inflation impact of tariffs is clearer. Markets now await Fed minutes and Friday’s PCE inflation data for policy signals.

Support is seen at $3,270, while resistance is located at $3,370. Further levels include $3,150 and $3,025 below, and $3,440 and $3,500 above.

Sterling Slips as U.S. Confidence Rises Sharply in May

GBP/USD slipped to around 1.3480 during Wednesday’s Asian session, as the U.S. dollar gained strength on the back of encouraging economic data. Support for the Greenback came after the Conference Board reported a sharp rise in the U.S. Consumer Confidence Index, which jumped to 98.0 in May from a revised 86.0 in April. Investors now await the FOMC meeting minutes for further insight into the U.S. monetary policy outlook.

Support lies at 1.3425, with resistance at 1.3600. Other key levels are 1.3750 and 1.3850 above, and 1.3165 and 1.2890 below.

Silver Recovers but Faces Pressure from Stronger Dollar

Silver (XAG/USD) hovered near $33.30 per ounce on Wednesday, rebounding from earlier losses. Still, gains were limited as a stronger U.S. dollar weighed on precious metals by making silver more expensive for overseas buyers. The dollar advanced after Japan signaled potential bond issuance cuts, which lifted global bonds and pushed U.S. yields lower. Easing U.S.-EU trade tensions reduced safe-haven demand, though concerns over U.S. debt tied to Trump’s proposed bill offered some support.

Support is at $32.30, with resistance at $33.80. Additional levels include $34.20 and $34.90 above, and $31.40 and $30.20 below.