With U.S. and U.K. markets closed, the focus is on determining the direction of the dollar-yen pair

With U.S. and U.K. markets closed, the focus is on determining the direction of the dollar-yen pair

25.05.2026 New

In yesterday’s U.S. currency trading, the U.S. dollar held steady. Today, at the start of the week, crude oil prices fell on expectations of an agreement between the U.S. and Iran, and with inflation concerns easing somewhat, the market is facing resistance on the upside. The USD/JPY pair traded within a range of 158.89 to 159.24 last weekend before closing around 159.20, but has since been pushed back into the upper 158-yen range.On the upside, the 159.00 to 159.20 range is likely to serve as a resistance level, while on the downside, the focus will be on whether the 158.50 to 158.00 range holds as support. With U.S. markets closed today, we will need to carefully assess the direction of the U.S. dollar amid thin trading conditions.

European currencies saw the euro recover against the dollar as the U.S. dollar weakened slightly. After trading in a range between 1.1588 and 1.1624 last weekend, the euro/dollar pair closed around 1.1603 and has risen to around 1.1640 at the start of the week.The immediate focus is on whether the pair can break above the 1.1650 level, while on the downside, the 1.1600 to 1.1580 range is likely to be closely watched. With the UK market also closed today, the pound is likely to lack clear direction, so we will be watching the euro-led movement of European currencies.

Today’s key economic indicator is Mexico’s April trade balance, due at 9:00 PM. Singapore’s GDP came in at 1.0% quarter-on-quarter, beating expectations, while its CPI came in at 1.8% year-on-year, falling short of forecasts, resulting in a mixed picture. With markets in the U.S., the U.K., Switzerland, and Hong Kong closed, liquidity is likely to be low during New York trading hours, so we should remain cautious and watch for sudden price movements in major currencies.