The Forex Market Today remain volatile as US-Iran tensions, rising inflation, Trump’s China visit and US PPI data drive the dollar and oil prices higher. Here is the Full Market Report.
⚡ Key Takeaways
Forex Market Today Amid US-Iran Tensions, Trump’s China Visit, Rising Inflation and PPI Data
TraderFactor Market Report May 13, 2026
Global forex markets remain highly volatile as investors react to escalating geopolitical tensions between the US and Iran, rising inflation pressures, and President Trump’s visit to China. The latest US CPI report showed inflation rising to 3.8% in April versus expectations of 3.7%, reinforcing expectations that the Federal Reserve may maintain higher interest rates for longer. Markets are now turning attention toward today’s US PPI inflation report and the Senate vote surrounding Kevin Warsh’s nomination as the next Federal Reserve Chairperson.
⚡ QUICK ANSWER ⚡
📊 Forex markets remain driven by stronger US inflation,
geopolitical tensions, and rising oil prices.
The hotter CPI reading has boosted the US dollar and increased speculation that the
Federal Reserve could maintain a hawkish policy stance for longer than expected.
Support and Resistance Snapshot
📊 Support & Resistance Levels
| Asset | Price | S2 | S1 | R1 | R2 | Bias |
|---|---|---|---|---|---|---|
| DXY | 98.330 | 97.80 | 98.00 | 98.60 | 99.00 | BULLISH |
| Gold | 4700 | 4650 | 4680 | 4735 | 4780 | BEARISH |
| EURUSD | 1.17343 | 1.1680 | 1.1710 | 1.1770 | 1.1810 | BEARISH |
| GBPUSD | 1.35336 | 1.3470 | 1.3500 | 1.3570 | 1.3620 | BEARISH |
| NZDUSD | 0.59392 | 0.5890 | 0.5910 | 0.5970 | 0.6010 | BEARISH |
| AUDUSD | 0.72333 | 0.7180 | 0.7210 | 0.7270 | 0.7310 | BEARISH |
| USDCAD | 1.36954 | 1.3640 | 1.3670 | 1.3730 | 1.3780 | BULLISH |
| USDJPY | 157.726 | 156.80 | 157.20 | 158.20 | 159.00 | BULLISH |
| USDCHF | 0.78058 | 0.7760 | 0.7780 | 0.7840 | 0.7880 | BULLISH |
| BTCUSD | 81210 | 79800 | 80500 | 82000 | 83500 | NEUTRAL |
| OIL | 96.615 | 94.00 | 95.20 | 98.50 | 101.00 | BULLISH |
| NAS100 | 29200 | 28850 | 29050 | 29500 | 29900 | NEUTRAL/BEARISH |
| US30 | 49766 | 49300 | 49500 | 50000 | 50400 | NEUTRAL |
| SP500 | 7421 | 7370 | 7395 | 7460 | 7510 | NEUTRAL/BEARISH |
• S1 & S2 (Support levels) – Price zones where buying interest may emerge. A break below S2 suggests further downside.
• R1 & R2 (Resistance levels) – Price zones where selling pressure may increase. A break above R2 signals strong momentum.
• Bias – Short-term directional tendency.
✅ BULLISH = Look for buying opportunities on dips toward support.
❌ BEARISH = Look for selling opportunities on rallies toward resistance.
⚠️ NEUTRAL = Wait for breakout confirmation before committing.
Market Analysis
Gold Analysis
Gold prices remain volatile as traders balance geopolitical safe-haven demand against rising Treasury yields and stronger dollar momentum. Technically, gold continues struggling below resistance after failing to extend bullish momentum above recent highs.
Fundamentally, yesterday’s hotter US CPI report strengthened expectations for tighter Fed policy, limiting upside potential in gold despite Middle East tensions. Rising oil prices are also increasing inflation concerns globally.
Oil Analysis
Oil prices remain strongly bullish as traders continue pricing in geopolitical supply risks involving Iran and the Strait of Hormuz. Market sentiment remains highly sensitive to headlines surrounding Trump’s warnings toward Tehran.
Technically, WTI crude continues trading within a strong bullish structure above key support zones.
Fundamentally, elevated crude prices are contributing directly to inflationary pressures, which could complicate the Federal Reserve’s path toward future rate cuts.
Currencies
The forex market remains heavily influenced by inflation expectations, rising Treasury yields, geopolitical tensions, and Federal Reserve policy outlook.
DXY
The Dollar Index remains bullish after stronger-than-expected CPI data boosted rate hike expectations.
Technically, DXY continues trading above major support zones while buyers target the 99.00 region.
Fundamentally, higher inflation and hawkish Fed expectations continue supporting the US dollar.
EURUSD
EURUSD remains bearish as the stronger dollar continues dominating price action.
Technically, the pair remains below key resistance zones with downside momentum building gradually.
Fundamentally, rising US yields and geopolitical uncertainty continue pressuring the euro.
GBPUSD
GBPUSD continues weakening below resistance as sellers maintain short-term control.
Technically, bearish momentum remains intact below major resistance structure.
Fundamentally, the pound remains vulnerable to broad USD strength and rising global risk aversion.
AUDUSD
AUDUSD remains under pressure despite short-term stabilization.
Technically, the pair continues struggling below resistance levels.
Fundamentally, risk-sensitive currencies remain pressured by geopolitical uncertainty and stronger US yields.
NZDUSD
NZDUSD continues consolidating below resistance.
Technically, bearish structure remains dominant in the short term.
Fundamentally, traders continue favoring defensive dollar positioning amid market uncertainty.
USDCAD
USDCAD remains bullish despite elevated oil prices.
Technically, the pair continues trading within bullish continuation structure.
Fundamentally, broad USD strength is currently overpowering the positive impact of higher oil prices on the Canadian dollar.
USDJPY
USDJPY remains strongly bullish with momentum targeting higher resistance levels.
Technically, the pair remains firmly above support zones.
Fundamentally, widening US-Japan yield differentials continue supporting upside momentum.
USDCHF
USDCHF remains bullish as buyers maintain control above support.
Technically, price action continues favoring bullish continuation.
Fundamentally, the stronger US dollar continues outperforming the Swiss franc amid rising Fed tightening expectations.
Bitcoin Analysis
Bitcoin remains stable above major psychological support despite rising macroeconomic uncertainty.
Technically, BTCUSD continues consolidating within a broad range while traders await stronger directional catalysts.
Fundamentally, crypto markets remain sensitive to liquidity conditions, inflation expectations, and broader market risk sentiment.
Equities
US equity markets remain near record highs but are increasingly vulnerable to rising inflation and higher interest rate expectations.
NAS100
The NAS100 remains within bullish structure although momentum is slowing near highs.
Higher yields continue pressuring technology stocks and growth sectors.
US30
The Dow Jones remains stable above support after recently approaching the 50,000 psychological level.
Markets continue monitoring inflation risks and geopolitical uncertainty.
SP500
The SP500 continues consolidating near all-time highs.
Persistent inflation fears may pressure equity valuations if markets fully price in higher-for-longer Fed policy.
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Geopolitical Developments
- Trump says he does not need Xi Jinping’s help regarding Iran
- Trump travels to China amid growing geopolitical uncertainty
- Trump warns Iran to “make a deal or be decimated”
- Markets remain highly reactive to Middle East headlines
Trump’s China visit is becoming a major geopolitical focus as traders monitor developments involving diplomacy, trade relations, and global stability.
Economic Calendar & Key Events
US PPI Inflation Report
Markets are closely watching today’s Producer Price Index (PPI) report following yesterday’s stronger CPI release.
Yesterday’s CPI inflation rose to 3.8% versus expectations of 3.7%. The Federal Reserve inflation target remains: 2%
Why PPI Matters
PPI measures wholesale inflation at the producer level and often acts as an early signal for future consumer inflation.
If today’s PPI data rises above expectations:
- The USD could strengthen further
- Treasury yields may continue rising
- Gold and equities may face pressure
- Fed rate hike expectations could increase further
Kevin Warsh Fed Chair Vote
The Senate will continue discussions surrounding Kevin Warsh’s nomination as Federal Reserve Chairperson for May 2026–2030.
Markets view Warsh as relatively hawkish on inflation and monetary policy following Jerome Powell’s departure.
Final Outlook
Markets remain driven by:
- Rising US inflation
- Escalating US-Iran tensions
- Elevated oil prices
- Federal Reserve uncertainty
- Trump’s China visit
Current Forex Market Bias
- USD → Bullish
- Oil → Bullish
- Gold → Bearish/Volatile
- EURUSD & GBPUSD → Bearish
- Equities → Vulnerable near highs
- Bitcoin → Neutral
Volatility is expected to remain elevated as traders react to inflation data, geopolitical developments, and Federal Reserve expectations throughout the trading session.
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Author Details:
Phyllis Wangui
Senior Market Analyst, TraderFactor
Phyllis Wangui is a seasoned financial markets analyst with over a decade of experience in forex and CFD brokerage evaluation. Specializing in regulatory compliance and risk assessment, she leads the TraderFactor reviews team in delivering transparent, data-driven broker breakdowns that help retail traders navigate complex offshore and Tier-1 trading environments.
Reviewed by Alex Kanyi
Head of Compliance | TraderFactor
“This report is for general information only. Trading involves significant risk. Seek independent advice before acting on any content.”
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Last Updated: May 2026
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