Insights 
VT 
The US Housing Price Index fell below expectations in April, showing a decline of 0.4% month-on-month, against an anticipated growth of 0.1%. This unexpected decrease suggests a cooling in the housing market dynamics during that period.
The EUR/USD pair maintained its strength, holding near 2025 highs around 1.1640, driven by hopes of a peaceful resolution in the Middle East. Meanwhile, the USD/JPY pair saw the Yen gaining, with a drop of around 300 pips from the weekly peak, with a potential further decline if it breaks below 144.50.
Gold Market Overview
Gold remained stable around $3,310, briefly dipping below $3,300 amid optimism in the market over Middle East tensions easing. comments from Fed Chair Powell added to the positive sentiment in the market atmosphere.
In the cryptocurrency realm, traders are shifting focus back to the top three cryptos, indicating the altcoin season may be losing steam. Additionally, heightened tensions with Iran have raised concerns over the potential closure of the Strait of Hormuz, which could impact oil prices, as conflicting interests in the region escalate.
The earlier-than-expected contraction in the US Housing Price Index for April, clocking in at -0.4% instead of the modest 0.1% increase forecasted, highlights what might be a temporary softness in the wider property sector. Doors are now open for speculation that higher borrowing costs may finally be taking their toll. For us, this development throws into question the resilience of some underlying demand metrics and urges a rethink about how strong mortgage-driven consumption may be in upcoming quarters.
Currency Market Analysis
For currency traders, there’s something telling in the way EUR/USD has hovered confidently near 2025 highs. The pair’s durability around the 1.1640 region reflects renewed investor appetite for the euro, underpinned by easing geopolitical jitters—particularly in the Middle East. We’d take a closer look at the cross-market flows here, especially against the backdrop of repricing in European interest rate expectations. The absence of renewed dollar strength leaves space for selective long bets within a narrow band–if those war concerns continue to subside.
The Yen’s recent revival, evidenced by a steep 300-point pullback in USD/JPY, may not yet have run its course. A breakdown beneath the 144.50 support level could unlock a short-term path lower for the pair, especially as safe haven demand perks up again. This would merit careful chart watching. We’ve noticed how repeated failures to reclaim recent highs are drawing in more momentum sellers, with stop clusters building up below 144.50. If those give way, there’s a real possibility of a deeper correction in the coming sessions.
Gold, which stayed rooted close to $3,310 after dipping briefly below $3,300, isn’t moving aggressively—yet its refusal to drop meaningfully in response to improving sentiment around conflict zones tells us there’s still hedging at play. Powell’s comments midweek, which steered clear of hawkish surprises, likely prevented further downside for the metal. We wouldn’t dismiss the possibility of a tight consolidation forming here, with traders possibly waiting for sharper inflation signals before committing in either direction.
On the digital asset front, attention seems to be migrating away from fringe altcoins back toward the market’s mainstays—namely Bitcoin, Ethereum, and their immediate peers. That realignment suggests that the recent speculative fervour around lower-tier tokens may be waning. This shift is far from trivial. For us, that indicates that sentiment is growing more disciplined again, possibly in response to liquidity tightening or fatigue from unsupported rallies.
At the same time, tensions tied to Iran have raised the chances of movement in commodity-linked pairs and energy assets. Worries about the possible closure of the Strait of Hormuz—responsible for a fifth of global oil—ahead of a typically volatile month could inject short-term volatility. While nothing has been concretely disrupted yet, the risk premium is already entering some trading decisions. We’d be closely observing whether that premium finds its way into options pricing and spread differentials on Brent-linked derivatives as we head into the next news cycle.
