Insightz

The U.S. dollar has recently shown a stronger trend against the Canadian dollar, supported by better-than-expected U.S. economic data, the Federal Reserve’s steady policy stance, and rising geopolitical tensions. Meanwhile, the Canadian dollar remains under pressure due to weak domestic economic performance and widening interest rate differentials. Investors should closely monitor oil price movements and global developments to navigate currency market volatility effectively.

The Bank of Japan is reportedly planning to slow the pace of government bond reduction starting April 2026, as part of a strategy to navigate market volatility and support the country’s ongoing economic recovery. This potential policy shift has caught the attention of investors, with implications for the stability of Japan’s bond market and the broader flow of capital. The move is expected to be a key topic at the central bank’s June policy meeting.

The euro continues to strengthen against the US dollar, with short-term momentum signaling further upside potential. Both technical indicators and fundamental factors support a bullish outlook. This week, investor attention turns to the upcoming interest rate decisions from the European Central Bank and the Federal Reserve—key events that could trigger heightened market volatility. Traders are advised to closely watch how EUR/USD performs around the key resistance level at 1.1625 and adjust their strategies accordingly.

Israel’s surprise strike on Iran’s nuclear facilities has sharply escalated tensions in the Middle East, triggering major volatility across global markets. Brent crude surged past $100 per barrel, while safe-haven assets like gold and U.S. Treasuries gained ground. In contrast, equity markets faced broad-based pressure amid rising geopolitical uncertainty. Investors should closely monitor ongoing developments and consider rebalancing their portfolios—particularly in energy and defensive sectors—to stay ahead in a rapidly shifting landscape.

The U.S. has ordered the evacuation of non-essential staff from its embassy in Iraq, sparking heightened geopolitical tensions across the Middle East. In response, global oil prices surged as investors grew increasingly anxious about potential disruptions to energy supply. Escalating military activity from Iran is adding to the uncertainty, posing fresh risks to the global economy and fueling volatility in international markets.

U.S. inflation slowed in May, with the Consumer Price Index (CPI) rising 2.4% year-over-year—a clear sign that inflationary pressure is easing. This has increased market expectations for a potential interest rate cut by the Federal Reserve. However, the possibility of new tariffs could introduce fresh price volatility. Investors should stay alert and adopt a cautious, well-planned investment strategy.