Forex Today: BoJ maintains status quo, US-Iran uncertainty persists
Here is what you need to know on Tuesday, April 28:
Market mood sours following Monday's choppy action as optimism about an end to the conflict between the United States (US) and Iran wanes. In the second half of the day, the US economic calendar will feature the weekly ADP Employment Change data and the Conference Board's Consumer Confidence Index for April.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.20% | 0.19% | 0.00% | 0.08% | 0.21% | 0.35% | 0.40% | |
| EUR | -0.20% | -0.03% | -0.22% | -0.13% | -0.00% | 0.10% | 0.20% | |
| GBP | -0.19% | 0.03% | -0.19% | -0.11% | 0.03% | 0.14% | 0.22% | |
| JPY | 0.00% | 0.22% | 0.19% | 0.09% | 0.21% | 0.33% | 0.39% | |
| CAD | -0.08% | 0.13% | 0.11% | -0.09% | 0.13% | 0.23% | 0.31% | |
| AUD | -0.21% | 0.00% | -0.03% | -0.21% | -0.13% | 0.12% | 0.22% | |
| NZD | -0.35% | -0.10% | -0.14% | -0.33% | -0.23% | -0.12% | 0.07% | |
| CHF | -0.40% | -0.20% | -0.22% | -0.39% | -0.31% | -0.22% | -0.07% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Iran reportedly sent a proposal to end the war and open the Strait of Hormuz on Monday. Citing sources familiar with the discussions, CNN reported that US President Donald Trump signaled that he was unlikely to accept Iran's proposal, as reopening the strait without resolving questions over Iran’s nuclear enrichment could remove an important leverage in negotiatons. The barrel of West Texas Intermediate (WTI) gains about 2% on the day and trades slightly below $97 in the European morning. Meanwhile, the US Dollar (USD) Index stays in positive territory above 98.50 and US stock index futures trade mixed.
The Bank of Japan (BoJ) left its monetary policy settings unchanged following the April meeting, as anticipated. In its quarterly Outlook Report, the BoJ revised the median forecast for the core Consumer Price Index in the fircal year of 2026 to 2.8% from 1.9% in January's report. BoJ Governor Kazuo Ueda said in the post-meeting press conference that real interest rates are at significantly low levels and added that they will "continue to raise policy rate, adjust the degree of monetary accommodation according to economic activity, prices and financial conditions." After dropping to a fresh weekly low below 159.00 with the immediate reaction to the BoJ policy decisions, USD/JPY staged a rebound and was last seen trading flat on the day, slightly below 159.50.
Following the bullish action seen in the European session on Monday, EUR/USD erased a large portion of its daily losses in the American session. The pair stays under modest bearish pressure and trades in the red near 1.1700 in the European morning on Tuesday.
AUD/USD struggles to preserve its bullish momentum after rising more than 0.5% on Monday and trades near 0.7170. In the Asian session on Wednesday, CPI data from Australia will be watched closely by market participants.
GBP/USD declines toward 1.3500 in the European morning on Tuesday after closing virtually unchanged on Monday. According to The Times, the United Kingdom (UK) House of Commons will vote on Tuesday on whether to launch an investigation through the Committee of Privileges to determine if Prime Minister Keir Starmer misled lawmakers over the appointment of former US ambassador Peter Mandelson.
Gold comes under renewed selling pressure early Tuesday and trades at its lowest level in three weeks below $4,650.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
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