EUR/JPY looks firmer, approaches 2021 highs

EUR/JPY adds to recent gains above 133.00
The selling bias in the dollar lends wings to the euro.
German final Q1 GDP contracted 1.8% QoQ, 3.4% YoY.

Pablo Piovano FXStreet

The softer note surrounding the greenback lifts the demand for the single currency and lifts EUR/JPY further north of the 133.00 mark on Tuesday.

EUR/JPY stronger on firm risk appetite

EUR/JPY advances for the second session in a row on Tuesday and extends the positive note at the beginning of the week.

In fact, the broad-based risk-on sentiment keeps the dollar depressed and bolsters the buying bias in the risk complex, motivating the cross to trade at shouting distance from YTD peaks around 133.40.

Adding to the negative tone in the dollar, yields of the US 10-year reference slip back to the sub-1.60% area so far, extending the downtrend since last week’s tops around 1.70%.

In the euro docket, the German economy contracted 1.8% QoQ during the January-March period and 3.4% over the last twelve months. In addition, the German IFO survey showed the Business Climate improved to 99.2 for the month of May, surpassing expectations.

Later in the NA session, the Consumer Confidence will take centre stage seconded by housing data and the weekly report by the EIA on crude oil supplies.

EUR/JPY relevant levels

So far, the cross is gaining 0.33% at 133.24 and a surpass of 133.43 (2021 high May 19) would pave the way for a test of 133.48 (monthly high Apr.2018) and then 134.00 (round level). On the downside, the next support at 131.64 (weekly low May 12) seconded by 130.98 (monthly low May 5) and finally 130.84 (50-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold approaches $4,000 following US inflation data

Gold surrenders a big chunk of Monday’s advance and approaches the key $4,000 mark per troy ounce on Tuesday. The precious metal’s decline follows the solid performance of the US Dollar and rising US Treasury yields after US inflation figures.

Pi Network rebounds from record lows, exits oversold territory as momentum improves

Pi Network (PI) shows a strong recovery on Tuesday, up over 7% after recording its all-time low of $0.0624 the previous day. PI token’s appeal in the derivatives market shows minor improvement, with Open Interest rising to $6.21 million.

Five risks for the global economy in 2027

From AI bubbles to geopolitical breakthroughs, these are some of the five ways why this outlook could go wrong – or right: A severe correction in US stocks triggered by an AI meltdown, second-round inflation effects emerge at scale or geopolitical de-escalation delivers an energy peace dividend.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.