Forex Today: Dollar pares gains but retain gains

FXStreet Team FXStreet

What you need to know on Friday, May 14:

The American currency retained its strength, reaching fresh weekly highs against most major rivals. However, demand for the greenback lost momentum after the release of encouraging US related data. Unemployment claims decreased to 439K in the first week of May, its lowest reading since March 2020.

US Treasury yields retreated, with the yield on the 10-year note hitting 1.70% to then settle at 1.66%. Stocks bounced back, with US indexes closing with substantial gains and trimming most of Wednesday’s losses.

However, producer prices in the US rose by more than anticipated, another sign of heating inflation. All eyes now turn to US Retail Sales, seen contracting by 0.2% MoM in April.

Major pairs closed mixed, not far from their opening levels, with the greenback marginally lower against its European rivals and safe-haven yen. The USD/CAD pair out-stands, as it surged to 1.2202 on the back of falling oil prices. WTI settled at $ 63.70 a barrel. Gold, on the other hand, recovered some ground and finished the day around $ 1,826 a troy ounce.

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EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.