Forex Today: Attention shifts to US PCE

The Greenback managed to regain some late traction and trimmed most of its daily losses amidst a decent bounce in US yields and diminishing expectations of a rate cut by the Fed in September.

Here is what you need to know on Wednesday, May 29:

The USD Index (DXY) rebounded from multi-day lows near 104.30 on the back of te strong comeback of US yields. On May 29, weekly Mortgage Applications are due seconded by the Fed’s Beige Book. In addition, Fed’s Williams is due to speak.

EUR/USD failed to sustain the early move to the vicinity of the 1.0900 region, eventually succumbing to the Dollar’s bounce. Germany’s Consumer Confidence tracked by GfK is expected on May 29 along with the flash Inflation Rate for the month of May.

GBP/USD retested the 1.2800 level for the first time since mid-March, although that move ran out of steam towards the end of the NA session. There are no data releases scheduled across the Channel on May 29.

The dollar’s late recovery and the decent bounce in US yields across the curve prompted USD/JPY to poke with multi-week tops beyond 157.00. IN Japan, the Consumer Confidence gauge will be released on May 29 seconded by the speech by BoJ Adachi.

AUD/USD ended Tuesday’s session with marginal losses after advancing to four-day highs near 0.6680. On May 29, the Westpac Leading Index is due along with the RBA’s Monthly CPI Indicator.

WTI prices rose further and surpassed the key $80.00 mark per barrel mainly on hopes that the OPEC+ would maintain its crude oil output cuts unchanged at the cartel’s meeting over the weekend.

Prices of Gold edged higher and broke above the $2,360 mark per troy ounce despite the bounce in the dollar and US yields, while prudence remained on the rise prior to the release of US PCE later in the week. Silver gathered extra pace and advanced for the third session in a row, this time surpassing the $32.00 mark per ounce.