Forex Today: Dollar struggles to find demand ahead of US inflation data – FXStreet

Here is what you need to know on Friday, May 27:
With risk flows dominating the financial markets on Thursday, Wall Street's main indexes registered impressive gains and the dollar continued to lose interest. Although the market mood seems to have turned cautious early Friday, the US Dollar Index trades at its lowest level in a month near the mid-101.00s. The US Personal Consumption Expenditures (PCE) Price Index data, the Fed's preferred gauge of inflation, will be published later in the day. The US Bureau of Economic Analysis will also release the Personal Income and Personal Spending data for April alongside the University of Michigan's Consumer Sentiment Index for May.
US Core PCE Preview: Why there is room for a dollar-lifting upside surprise.
Crude oil prices rose sharply on Thursday amid renewed supply concerns and the barrel of West Texas Intermediate (WTI) climbed to its highest level in ten days near $115. Earlier in the day, Russian Deputy Prime Minister Alexander Novak said they were expecting Russia's oil production to decline to 480-500 million tonnes this year from 524 million tonnes in 2021.
Bloomberg reported on Friday that Chinese Premier Li Keqiang warned of dire consequences if they fail to prevent the economy from sliding further and noted that a contraction in the second quarter must be avoided. Meanwhile, the US and Taiwan are reportedly planning to announce economic talks to deepen their ties, which could be seen as a factor that could cause US-China geopolitical tensions to escalate. 
EUR/USD took advantage of the selling pressure surrounding the dollar and advanced to its highest level in a month at 1.0765 before going into a consolidation phase. The pair remains on track to close the second straight week in positive territory.
GBP/USD registered small gains on Thursday and fluctuates in a relatively tight channel above 1.2600 on Friday. British Finance Minister announced on Thursday that they will be sending one-off £650 payments to around 8 million of the country's lowest-income households.
Following a three-day consolidation, AUD/USD gained traction during the Asian trading hours and climbed above 0.7100. The data from Australia showed that Retail Sales rose by 0.9% on a monthly basis in April, matching the market expectation.
USD/JPY stays on the back foot and trades near 127.00 early Friday. Bank of Japan Governor Haruhiko Kuroda noted on Friday that they are not expecting prices to rise sustainably unless accompanied by wage hikes.
Gold struggled to gather bullish momentum on Thursday as the benchmark 10-year US Treasury bond yield continued to move up and down near 2.75%. XAU/USD stays calm on Friday and moves sideways slightly above $1,850.
Bitcoin dropped to a two-week low of $28,000 on Thursday. Although BTC/USD managed to erase a small portion of its losses ahead of the weekend, it continues to trade below the key $30,000 level. Ethereum suffered heavy losses in the second half of the week and lost nearly 8% on Thursday. At the time of press, ETH/USD was down 1% on the day at $1,770.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 
GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 
Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.
ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.


Leave a Reply

Your email address will not be published.