The United States goods trade balance for May was recorded at $-96.6 billion, which was below the anticipated figure of $-88.5 billion. This compares the difference between the value of exported and imported goods, indicating a wider trade deficit than expected.

The EUR/USD currency pair is holding its current gains near 1.1700 amid a generally weaker US Dollar. Similarly, the British Pound to US Dollar (GBP/USD) exchange rate maintains its strength above 1.3700, following a streak of wins attributed to ongoing US Dollar softness.

Gold Prices Experience Steady Gains

Gold prices are registering a mild positive trend for the second consecutive day, maintaining below $3,350 in European trading. Concurrently, Bitcoin Cash has shown a 2% increase and is approaching the $500 level, driven by a parallel channel pattern suggesting increased bullish momentum.

The Strait of Hormuz, a critical sea passage in the Persian Gulf, is once again a point of tension as geopolitical issues between Israel and Iran escalate. Concerns are rising about the potential impact on oil markets if the strait were to be blocked amid ongoing conflicts involving the United States.

The higher-than-expected US goods trade deficit announced for May, now sitting at $96.6 billion, reflects an uneven trade dynamic. Imports have outpaced exports by more than forecast, hinting at weaker external demand for US goods or more robust domestic consumption of foreign products. Either scenario points to reduced net export contribution toward GDP. This suggests potential pressure on economic growth figures moving forward. For those gauging the dollar’s response, it’s not simply a reflection of trade numbers, but of broader macro trends wrapped within rate expectations, inflation outlook, and fiscal pressures.

In foreign exchange, EUR/USD continues hovering near the 1.1700 mark, its edge upheld by sustained dollar underperformance. The strength in the euro is partially underpinned by a quieter European inflation print and stabilising bond markets. Sterling, too, remains firm above 1.3700. This move, nurtured by a softer dollar tone and residual post-election sentiment, has encouraged a positive drift in pound-denominated risk assets. Cable’s resilience should not be isolated to momentum alone; it mirrors widening yield differentials, mildly rebalancing flows, and hedging activity likely tied to broader positioning shifts.

Interest in Safe Haven Assets Increases

Gold, while below the $3,350 level, has marked modest gains again during European hours. The metal tends to act as a hedge during times of financial uncertainty or geopolitical instability, the latter of which is gaining traction. Holding above recent support zones and inching higher may reflect an early rotation by some into perceived safe-haven assets. That movement appears fairly deliberate, with spot flows and ETF activity mildly picking up — indicative of preparatory activity, not full-blown directional bets.

Bitcoin Cash trading up 2%, near the $500 level, reflects a classic response to improved mood in wider crypto sentiment. The movement follows a technical signal: a clean channel breakout pattern, suggesting traders are beginning to lean toward increased engagement near thresholds of perceived momentum triggers. The response isn’t quite speculative euphoria — instead, it reads more as a structured re-entry by those temporarily sidelined since the last bout of volatility.

Away from markets, the uptick in tensions in the Strait of Hormuz continues to draw notice. Given that roughly a fifth of global oil passes through this choke point, any disruption — even if limited to risk repricing rather than physical supply impacts — can feed directly into price volatility for crude and related derivatives. From energy spreads to shipping futures, the rise in premium on geopolitical risk is being gradually priced in. We’ve already seen early defensive positioning, as some portfolios shift slightly toward upside protection on Brent and WTI. Watching developments closely, keeping risk-reward tightly calibrated and liquidity plans flexible seems sensible now.

Overall, the data deviates from expectations in a way that demands selectivity — not blanket positioning, but tactically aware risk-taking. Price levels are reacting, but not overreacting, suggesting there’s room to manoeuvre if discipline remains.

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