Forexlive Americas FX news wrap 27 May: USD moves higher with stocks. Yields move lower. ...Middle East

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Forexlive Americas FX news wrap 27 May: USD moves higher with stocks. Yields move lower.
US major indices have a solid start to the holiday shortened weekNZDUSD moves lower ahead of the RBNZ rate decisionEconomic calendar in Asia Wednesday, May 28 2025: RBNZ rate cut expected, &2 Fed speakersRussia's Medvedev on Trumps comment that Putin is playing w/fire...Crude oil future settle at $60.89 down -$0.64 or -1.04%Senator Lummis. Bill to buy $1M bitcoin hits senate floor next weekAir raid sirens are going off in KievUS treasury auctions off $69 billion of two-year notes 3.955%SNB's Schlegel: In the coming months we cannot rule out negative inflation in SwitzerlandECB Lane: No one is talking about dramatic rate cutsGerman DAX closes at a record level.Trump: Putin is playing with fire.Technology leads the charge: Tesla electrifies, Nvidia surgesAtlanta Fed GDPNow growth estimate for Q2 2.2% vs 2.4% lastUS consumer confidence for May 98.0 versus 87.0 estimate.Feds Barkin: Data shows economy on same trajectory as last year or twoCase Shiller monthly home price data for March -0.1% versus 0.3% estimateGeopolitics: Trump could impose new Russian sanction in coming daysUS durable goods for April -6.3% versus -7.8% estimateWhite House economic advisor Hassett: There could be more deals this week. Up to Trump.The USD is higher as traders come back from the holidays in the UK and US yesterdayForexlive European FX news wrap: Good day for USD, bad day for JPY

The USD moved higher on risk-on sentiment which saw stocks in the US move solidly higher to start the holiday-shortened week.

The final numbers are showing:

    Dow industrial average rose 740.58 points or 1.78% at 42343.65. At session lows the index was up 245.97 points.S&P index rose 118.72 points or 2.05% at 5921.54. At session lows the index rose was up 51.25 pointsNASDAQ index rose 461.96 points or 2.47% at 19199.16. At session lows the index was up 224.48 points

    The S&P index is now positive on the year by 0.68%. The NASDAQ index is still modestly lower by -0.58%. The Dow industrial average is down -0.47% for 2025.

    In the US debt market yields moved lower with the long end outperforming:

    2-year yield 3.980%, -0.6 basis points5-year yield 4.035%, -4.1 basis points10-year yield 4.443%, -6.7 basis points30 year yield 4.950%, -8.7 basis points.

    Yields moved lower on the day, despite a strong rebound in consumer sentiment, with the Conference Board Consumer Confidence Index rising to 98, well above both the 87 estimate and last month’s 85.7 reading. However, other economic data painted a more mixed picture.

    The Case-Shiller Home Price Index showed a modest decline of -0.1%, falling short of the +0.3% forecast. Meanwhile, durable goods orders (advance) dropped -6.3%, which was better than expectations of a -7.8% decline. Excluding transportation, orders rose 0.2%, reflecting the outsized impact of large-ticket transportation items.

    Notably, non-defense capital goods orders excluding aircraft—a key proxy for business investment—fell -1.3%, sharply below the -0.1% estimate. This decline underscores growing caution among businesses, likely driven by uncertainty around tariffs and trade policy.

    Fed's Barkin spoke today and described the U.S. economy as remaining on a similar path as the past couple of years, with low unemployment and inflation gradually easing toward target. He noted that businesses are cautious, citing hiring freezes and delayed investment, though he doesn’t see evidence of outright cancellations. Barkin emphasized business sentiment as a key forward-looking indicator.

    On the consumer side, he pointed out that although inflation expectations are weighing on sentiment, real-time data does not yet show a drop in spending. He also mentioned that government spending cuts are starting to impact employment, particularly in the D.C. area.

    Regarding Trump’s tariff policies, Barkin said the effects on inflation and employment appear balanced so far. Businesses are responding in two ways—stockpiling inventories or cutting imports—but it’s too early to assess the full economic impact.

    Overall tone: Cautiously neutral, with a wait-and-see approach to how businesses and consumers react to evolving inflation and policy changes.

    Looking at the US dollar, the greenback was higher vs the major currencies today, led by a 1% gain vs the JPY. The USDJPY is closing above the 200-hour MA at 144.077 (at 144.346).

    The EURUSD is closing below its 100 hour MA at 1.1344 but short of the 50% midpoint of the range since the April high. That level comes in at 1.1318. Teh current price comes in at 1.1326.

    The GBPUSD is lower and is testing its 100 hour MA at 1.3497 going into the new trading day. That will be a key barometer in the new trading day. Staying above is more bullish. Moving below, increases the sellers bias.

    The RBNZ is expected to cut rates by 25 basis points in the new trading day. The 100/200 bar MA on the 4-hour chart and the 200 hour MA are all converged near 0.5935. The current price is at 0.5942. That cluster will be the key barometer for buyers and sellers in the new trading day.

    Good fortune with your trading.

    This article was written by Greg Michalowski at www.forexlive.com.

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