Stocks Climb and USD Gains Ground: North American Midday Market Snapshot

[Ben Graham]

The US Dollar is enjoying a broadly positive day after a relentless stumble throughout the past week.

A green start to the week in Equity Indices is seeing follow-through in this morning session. The Nikkei is once again leading all indices as the 2025 BOJ-IMES Conference is continuing, driving up sentiment across all asset classes.

Winners in a Risk-On Market

The BOJ-IMES conference in Tokyo has had quite an influence on the current day, as the Nikkei has been leading all indices since the beginning of the week, dragging up sentiment - The index is up 3.74% on the day.

Recent comments by the Japanese Minister of Finance Kato have weakened the yen and boosted markets, as lower yields and a generally lower yen help to reinforce flows around Carry Trades, supplemented by other Risk-On flows. This has led to a strong rally in USD/JPY, up around 1% on the day.

As a matter of fact, the US dollar is leading all majors today, having flashed below the 99.00 psychological level and currently trading around 99.50.

US Stocks are all green and up well above 1%, led by the Russell 2000 (+2.07%) closely followed by the Nasdaq (+2%) after Consumer Sentiment data came in way above expectations.
The release came at 98 vs a consensun of 86.

On the other hand, European stocks are not up as much with the DAX up 1% and EuroStoxx up 0.56% on the day.

Bitcoin, also enjoying from the risk-on market, is up 1% on the day and still consolidating near its all-time highs.

Oil and Gold are both lagging as flows are all headed into the indices. WTI, down 1.85%, hasn't enjoyed from the broadly positive sentiment, as progress in US-Iran Nuclear talks is slowing.

A Chart to monitor for the Afternoon Session

close

DXY 1H Chart, May 27, 2025. Source: TradingView

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The US Dollar has made a substantial recovery from yesterday's trough.
A higher low led to a swift bounce for the greenback, and we are seeing the results as the dollar is leading all majors in the morning session.

The impulsive move left the MA 20 lagging, as prices are heading towards the MA 200 situated right below the 100.00 level.

Next resistance resistance zone to monitor is 99.64-99.74.

If we see any reversal, look at the 99.20-99.30 support zone.

Safe Trades!

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