Forex Today: All the attention shifts to US Inflation data

Pablo Piovano FXStreet

In a very positive start to the new trading week, the Greenback edged sharply higher following a fresh bout of optimism on the trade front, all after the auspicious US-China trade talks over the weekend.

Here is what you need to know on Tuesday, May 13:

The Dollar Index (DXY) rebounded markedly and came just pips away from the key 102.00 barrier, or five-week highs, following the encouraging tone from the recent US-China trade discussions. Markets participants will focus on the US Inflation Rate, seconded by the NFIB Business Optimism Index, and the API’s weekly report on US crude inventories.

EUR/USD collapsed to multi-week troughs near 1.1060 in response to the strong rebound in the US Dollar across the board. Attention now turns to the ZEW Economic Sentiment surveys in Germany and the euro area..

GBP/USD slipped back to the 1.3140 region on the back of the strong resurgence of the bid bias around the Greenback. The BRC Retail Sales Monitor and the release of the labour market figures will take centre stage across the Channel.

USD/JPY rose further and advanced to new six-week tops around the 148.60 zone following the improved sentiment around the US-China trade front. Traders’ focus will be on the release of the BoJ’s Summary of Opinions.

AUD/USD broke below the 0.6400 support, resuming its decline amid the continuation of the strong rebound in the US Dollar. The Westpac Consumer Confidence survey, NAB Business Confidence, Building Permits, and Private House Approvals are all due in Oz.

WTI gathered extra steam and flirted with three-week highs north of the $63.00 mark per barrel following auspicious news from the US-China trade front.

Gold prices remained on the defensive and revisited the area of monthly lows near the $3,200 mark per troy ounce amid the stronger US Dollar, higher US yields and extra optimism on the US-China trade conflict. Silver prices managed to bounce off daily troughs below the $32.00 mark ounce, ending the day with just humble losses.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD clings to daily gains near 1.3350

GBP/USD holds just in positive territory around 1.3350 on Friday as the Greenback keeps a vacillating price action. With Fed rate hike expectations easing and US markets closed for the Independence Day holiday, Cable remains on track to post solid weekly gains.

EUR/USD remains sidelined around 1.1440

EUR/USD holds on to its recent gains and consolidates around 1.1440 at the end of the week as the US Dollar lacks clear direction. In the meantime, trading conditions remain subdued, with volatility constrained by the closure of US markets for the Independence Day holiday.

Gold flirts with two-week highs, targets $4,200

Gold extends its recovery for a third straight day, advancing toward the $4,200 mark per troy ounce on Friday. The precious metal looks set to snap a four-week losing streak as softer-than-expected June US NFP data prompt investors to scale back expectations of further Fed tightening.

Crypto Today: Bitcoin, Ethereum, XRP advance amid renewed capital inflows

Bitcoin maintains its upward momentum, holding above the $61,000 mark at the time of writing on Friday. Major altcoins such as Ethereum and Ripple are also posting gains, signaling a modest uptick in market sentiment and renewed risk appetite among investors.

The Iran war failed to trigger a recession. Can the US economy keep defying expectations?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.