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The sources say that the US has sent a “long” and “tough” list of requests to Vietnam as part of tariff negotiations between the two countries. One part of that being a call for Vietnam to effectively cut its reliance on Chinese supply chains. This was always going to be one of the trickier deals to work out as Vietnam is playing this on the fence for the most part.

If you must know, the US is pretty mad about the whole situation as Vietnam is a hot spot for China to get involved in origin washing as noted previously here.

This article was written by Justin Low at www.forexlive.com.

More to come..

This article was written by Justin Low at www.forexlive.com.

• Key factors for May rate decision were domestic, not tariffs.
• We have not seen particular inflation surprises.
• Labour market has loosened somewhat.
• Pay growth is above levels consistent with a 2% inflation target but lower than expected in February.
• Path of slowing pay growth is intact.

The UK continues to have the highest core inflation rate among the major economies.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Voted to hold rates unchanged in May as labour market not loosened as expected.
• Services price inflation above what I view as consistent with getting CPI back to target.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Disinflation process has continued.
• All MPC agree on disinflation, I see greater downside risks.

Core inflation stalled around 3.2% and it’s now back up to 3.8% but they are saying that disinflation has continued. Go figure…

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Would have preferred bank rate to have followed a different path.
• Overly restrictive policy risks supressing demand and disincentivising investment.
• Risks to inflation and growth tilted to the downside.

She’s an uber dove so nothing surprising in her comments.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Prior +2.2%
• Core CPI +2.4% vs +2.5% y/y expected
• Prior +2.7%

Headline annual inflation in the euro area dips back under the 2% level with core annual inflation also seen easing further on the month. That just supports rate cut bets by the ECB and will not make it complicated for policymakers to deliver another one on Thursday this week.

This article was written by Justin Low at www.forexlive.com.

• See no need now to change our baseline view on Japan’s economy.
• See no change to big picture of Japan’s economy, price developments since we released our outlook report on May 1.
• Many trade negotiations with US still going on, uncertainty remains high.
• Whether to raise interest rates and likely timing of such a move will depend on Japan’s economic, price developments.
• Won’t comment on short term moves in bond yields.

I’ve been reading the same comments from Ueda for several months now. There’s nothing new here. The BoJ focus remains on US-Japan trade negotiations and inflation.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

It’s been a shaky few days for Tesla (TSLA), and the chart is flashing some classic red flags that traders would be wise to pay attention to.

Tesla closed yesterday with a 1.09% decline, but that’s only part of the story. From its recent high just three days ago, the stock has dropped more than 9%, pulling back hard and filling the gap between May 23 and May 27. That’s often a sign that momentum is shifting—and not in the bulls’ favor.

The real action started on May 30, when Tesla triggered what many chart-watchers call a bear flag—a bearish continuation pattern that tends to precede deeper downside moves. If you’re new to trading, here’s the short version: after a strong drop, the stock consolidates in a rising channel or wedge, then breaks lower again. And that’s what looks to be unfolding now.

On the volume side, yesterday’s trading clocked in at 81.87 million shares, still under its 30-day average of nearly 110 million, but enough to confirm interest around these levels. The put/call ratio sits at 0.69, hinting that many traders are still positioning for upside—but contrarians might see that as misplaced optimism.

The key support zone is around $319, while the next major resistance sits near $368. If Tesla can’t reclaim and hold above the $340s in coming sessions, that $319 level could be tested sooner than many expect.

This comes just days after renewed headlines involving Elon Musk and substance allegations stirred uncertainty. (Catch up on that here:ForexLive coverage.)

What should traders do?

If you’re just starting out, this is a great learning moment:

• Bear flags suggest continuation of the downtrend, not a bounce.

• Gaps filling can often mean the easy upside is already gone.

• And when price hits a support zone, don’t jump in without signs of reversal—wait for volume and a strong green candle first.

Reminder: Trading stocks like TSLA can be volatile. Use stop-losses, and don’t risk more than you can afford to lose. Always do your own research, this is not financial advice and may even include errors (find any? Comment below so we can fix that!). Visit ForexLive.com (evolving to investingLive.com later this year) for additional views.Trade or invest in Tesla stock at your own risk only.

This article was written by Itai Levitan at www.forexlive.com.

The USD remains on the
backfoot as the support from the more hawkish repricing in interest rates
expectations got exhausted a couple of weeks ago. The market is now in line with the Fed’s baseline
projection of two cuts in 2025 and we will likely need strong US data to price
out the remaining rate cuts and give the greenback a boost.

The data for now has been good but not strong enough to make the market to price out the two cuts expected by year-end. The next key data will be the prices paid component in the ISM Services PMI tomorrow, the US Jobless Claims figures on Thursday, the NFP report on Friday and the CPI next week.

On the CHF side, the Swiss CPI today came mostly in line with expectations and didn’t change much in terms of market pricing. The market is still expecting 56 bps of easing by year-end with a 35% chance of a 50 bps cut at the upcoming SNB meeting.

On the 4 hour chart, we can see that the price broke below the key support at the 0.8185 level and started to consolidate just beneath it. This is where the sellers are piling in with a defined risk above the level to position for a drop into the 0.8038 level next. The buyers, on the other hand, will want to see the price rising back above the 0.8185 level to start targeting the 0.8350 level next.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Eurostoxx +0.2%
• Germany DAX +0.2%
• France CAC 40 +0.2%
• UK FTSE +0.3%
• Spain IBEX flat
• Italy FTSE MIB -0.1%

It’s a bit of catching up to the late bounce in Wall Street but any optimism there is balanced out by a slight drop as well in US futures today. S&P 500 futures are down 0.35% currently. Trade uncertainty continues to be the name of the game and US-EU talks will also take on importance for European indices later in the week.

This article was written by Justin Low at www.forexlive.com.

• 🌍 2025 global GDP growth forecast seen at 2.9% (previously 3.1%)
• 🌍 2026 global GDP growth forecast seen at 2.9% (previously 3.0%)
• 🇺🇸 2025 US GDP growth forecast seen at 1.6% (previously 2.2%)
• 🇺🇸 2026 US GDP growth forecast seen at 1.5% (previously 1.6%)
• 🇪🇺 2025 Eurozone GDP growth forecast seen at 1.0% (unchanged)
• 🇪🇺 2026 Eurozone GDP growth forecast seen at 1.2% (unchanged)
• 🇨🇳 2025 China GDP growth forecast seen at 4.7% (previously 4.8%)
• 🇨🇳 2026 China GDP growth forecast seen at 4.3% (previously 4.3%)
• 🇬🇧 2025 UK GDP growth forecast seen at 1.3% (previously 1.4%)
• 🇬🇧 2026 UK GDP growth forecast seen at 1.0% (previously 1.2%)
• 🇯🇵 2025 Japan GDP growth forecast seen at 0.7% (previously 1.1%)
• 🇯🇵 2026 Japan GDP growth forecast seen at 0.4% (previously 0.2%)

The organisation is projecting a more downbeat outlook for the world economy as Trump tariffs look set to bite at US growth especially. There are also downgrades for China, UK, and Japan for this year as well.

This article was written by Justin Low at www.forexlive.com.