Volatility in financial markets heighten midweek as investors react to latest headlines surrounding the conflict in the Middle East and keep a close eye on the Japanese Yen's action following another suspected foreign exchange intervention. Later in the day, the US economic calendar will feature private sector employment data for April.
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
US President Donald Trump has paused the "Project Freedom", citing "great progress" toward a permanent peace agreement with Iran. Iranian President Masoud Pezeshkian said the US is pursuing "a policy of maximum pressure" and noted that it's "impossible" for Iran to submit to the US' unilateral demands. Nevertheless, crude Oil prices correct lower on this development and the barrel of West Texas Intermediate (WTI) was last seen trading near $96, losing about 4% on the day. Meanwhile, the US Dollar (USD) Index stays under bearish pressure and falls about 0.5% on the day, near 98.00. Reflecting a positive shift in market mood, US stock index futures rise between 0.3% and 0.8% in the European session.
In the late Asian session, USD/JPY declined sharply and slumped to 155.00 from around 158.00 in less than an hour, pointing to another possible market intervention. At the time of press, USD/JPY was trading at 156.20, down 1.1% on the day.
After struggling to make a decisive move in either direction on Tuesday, EUR/USD gains traction early Wednesday and trades near 1.1730, rising about 0.4% on a daily basis.
