Released today, the UK April GDP data shows an unexpected decline, far below market expectations, which has caused the British pound to come under pressure and weaken. Technical analysis suggests a potential head and shoulders top formation.

The Australian Dollar has extended its rally, pushing AUD/USD to new 2025 highs near 0.6550, as dovish U.S. inflation data sparks Fed rate cut bets and optimism around U.S.-China trade talks bolsters risk sentiment.

USD/JPY trades steadily near 145.30 ahead of crucial U.S. CPI data, with traders eyeing its implications for Fed policy.

In May, Japan's CGPI decreased to 3.2%, while food inflation persisted. Bank of Japan Governor Kazuo Ueda reiterated a gradual tightening approach, indicating limited scope for interest rate cuts.

The primary focus today is the upcoming release of the U.S. May Consumer Price Index, which could validate the impact of Trump's tariffs on inflation. The risk lies in whether the price increases are transitory, potentially reigniting inflation concerns and increasing bearish pressure on gold.

Following a sharp rebound from near the 100,000 mark, the recent rally of nearly 10% has shown signs of losing momentum, raising the probability of a short-term correction.