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AUD/USD has its highest since December 2, 2024.

EUR, GBP (highest since February of 2022!), NZD, CAD, CNH all rising also.

My headline remark about the People’s Bank of China ‘propping up’ the dollar is a jest. BUT … the PBoC didi flip its damping today to slow the rise of the CNY against the poorly performing USD:

• PBOC sets USD/ CNY reference rate for today at 7.1833 (vs. estimate at 7.1737)

Offshore yuan is rising regardless:

• Offshore yuan is hitting its highest since early November last year

This article was written by Eamonn Sheridan at www.forexlive.com.

Country Garden Holdings, formerly China’s top property developer by contracted sales, will appear in a Hong Kong court on Monday to request more time to progress its $14.1 billion offshore debt restructuring.

The company has reportedly gained backing from creditors representing over 70% of its debt.

However, as of May 22, key bank lenders had yet to sign on, according to media reports.

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I’m not sure this saga will ever end!

This article was written by Eamonn Sheridan at www.forexlive.com.

A couple of snippets from analysts on Friday, that have proved prescient, comments indicating Trump’s tariff threats being viewed as hollow.

Vanguard:

• investors expect the steep 50% tariff proposal on imports from the E.U. to be negotiated down, similarly to what happened with China
• market has slowed down now because it’s happened before, and we know what happened before
• “It’s kind of like the boy who cried wolf”
• administration is not crazy, they have a plan and there is a limit,” to how far they will go

Barclays:

• threats on the EU are ‘primarily a negotiating tactic’
• “the US has not turned the page on tariffs and that more trade policy volatility lies ahead”

This article was written by Eamonn Sheridan at www.forexlive.com.

Its Spring Bank holiday in the UK and Memorial Day in the US.

Markets are closed in those countries. Although the CME will offer limited hours for Globex. Its open now, for example, with equity index futures supported by Trump’s backing away from his June 1 imposition of 50% tariffs on the European Union, giving the bloc until July 9 to work a trade deal out.

Any bets he extends the deadline again if we get to July 9 without a deal singed?

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Meanwhile, S&P 500 futures update:

This article was written by Eamonn Sheridan at www.forexlive.com.

Japanese Prime Minister spoke on Sunday:

• aims to advance tariff talks with the US
• goal of achieving an outcome during the Group of Seven summit in June
• said there has been progress in negotiations
• willingness to cooperate in shipbuilding

Japan Prime Minister Ishiba held phone talks with Trump on Friday, a 45 minute call. Also this:

• Japan PM Ishiba: No change to our stance on U.S. tariffs

would seem to be a bit of a roadblock?

This article was written by Eamonn Sheridan at www.forexlive.com.

Trump’s comments are here, wide-ranging (Iran, wants a list of student names, tax bill):

• Trump says had some good talks with Iran, says had some real progress

EU head von der Leyen requested the extension:

• EU’s Von der Leyen spoke with Trump, said EU needs time until July 9 to reach a good deal

Trump has met the request.

USD/JPY and EUR/USD have popped a little:

This article was written by Eamonn Sheridan at www.forexlive.com.

Trump says had some good talks with Iran, says had some real progress.

I posted on this earlier:

• Update – Iran and US wrapped up a fifth round of nuclear talks – “constructive”

While soothing noisec are being made the two sides didn’t agree a date to meet again.

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More from Trump:

• thinks the Senate will make significant changes to his tax bill
• says the EU asked for an extension and he agreed to move to July 9
• US steel will be controlled by the US

This article was written by Eamonn Sheridan at www.forexlive.com.

On Monday, May 26th, 2025, the New York Stock Exchange and Nasdaq (and other equity exchanges) markets will be closed for Memorial Day.

However, CME Globex futures will have extended trading hours from Sunday, May 25th, at 6:00 PM (ET), and again from 6:00 PM (ET) on Monday, May 26th:

• This includes the E-mini S&P 500 futures (ES) and Nasdaq futures contract (NQ) (and others).

Full details can be found at the CME website. Interest rates and more will also open for Sunday evening trade.

This article was written by Eamonn Sheridan at www.forexlive.com.

The nuclear talks between Iran and the US were preceded by blunt remarks from Iran’s Foreign Minister Abbas Araghchi on Friday:

The talks concluded with no deal, of course, but were described as constructive, Via various media reports:

Iran:

• “We have just completed one of the most professional rounds of talks… We firmly stated Iran‘s position… The fact that we are now on a reasonable path, in my view, is itself a sign of progress.”

US:

• talks lasted more than two hours
• both direct and indirect with Omani mediators

• “The talks continue to be constructive — we made further progress, but there is still work to be done. Both sides agreed to meet again in the near future.”

No timing was set for the next round of talks.

This article was written by Eamonn Sheridan at www.forexlive.com.

Allianz Global Investors, USD650bn under management, is wary of US investment:

• “For investors, the message is clear: The US may no longer offer the reliable investment runway it did just months ago.”
• “Project economics, supply-chain commitments, and capital flows may now pivot toward more stable jurisdictions like Canada or the EU, unless clarity is quickly restored.”

Bloomberg (gated) carries the story. Bloomberg is gated but the ‘in a nutshell’ message from Allianz is that “European asset managers still have to contend with a new level of uncertainty and volatility that may ultimately force them to turn elsewhere”.

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I doubt this is going to surprise anyone. When you are managing money you have an obligation to ensure capital preservation as bet you can, as well as return on investment. Chaotic policy making is not helping with this.

This article was written by Eamonn Sheridan at www.forexlive.com.

It’s a sparse data agenda to kick off the new week in Asia.

The data due from Japan is lower-tier only and unlikely to move JPY too much upon release.

Note the holidays on the calendar today include the UK and US. Markets will be closed in the these countries.

For SGD traders there is April industrial production data due at 0500 GMT, see the link for more:

• This snapshot from the ForexLive economic data calendar, access it here.
• The times in the left-most column are GMT.
• The numbers in the right-most column are the ‘prior’ (previous month/quarter as the case may be) result. The number in the column next to that, where there is a number, is the consensus median expected.

This article was written by Eamonn Sheridan at www.forexlive.com.

Good morning, afternoon and evening all. Any charts, technical analysis, trade ideas, thoughts, views, ForexLive traders would like to share and discuss with fellow ForexLive traders, please do so:

This article was written by Eamonn Sheridan at www.forexlive.com.