Forex Today: Dollar’s decline giving signs of exhaustion


What you need to know on Friday, May 29th:

 The greenback gave up the ground gained on Wednesday, although there was no particular catalyst related to its slide. Data from the US was mixed, as Durable Goods Orders fell by a new record of 17.2%, although better than the -19% forecast. The economic contraction in the country was revised lower to -5.0% for the first quarter of the year. Continuing claims, however, fell by almost 4 million to 21 million.

The EUR/USD pair approached 1.1100, as the shared currency continued to be supported by the EU Commission proposed coronavirus’ aid package.

The Pound also benefited from the upbeat and comments from local authorities, although GBP/USD was unable to reach fresh highs, amid caution ahead of the next round of Brexit talks, scheduled for the next week.  , BOE’s Saunders said he had nothing to add to what Governor Bailey said on negative rates. "I would not rule out negative rates, that does not mean I would necessarily rule it in," Saunders added.

US President Trump opened another trade front, this time with social media. He prepared an executive order meant to regulate the way Twitter, Facebook or Google control their content.

Crude oil prices rose, with WTI reaching $34.00 a barrel despite a discouraging EIA report which showed that stockpiles in the US grew by 7.92 million in the week ended May 22, much worse than anticipated. The rally was underpinned by increasing demand for US gasoline and speculation that the OPEC+ could extend its output cuts.

Gold ends the day with modest gains around 1,717 after reaching an intraday high of 1,727.15. A better market mood weighed on the demand for the safe-haven asset.  

Cryptocurrency Market News: launch dates for Cardano's Shelley have now been released

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD nears 1.19 amid mixed US data

EUR/USD is trading close to 1.19, extending its gains after ADP's private-sector report badly misses expectations with an increase of only 167,000 jobs in July. The greenback had already been falling with yields. The ISM Non-Manufacturing PMI beat with 58.1. 

EUR/USD News

XAU/USD bulls unstoppable, renews life-time highs near $2040

With ‘buy the dips’ emerging as the main underlying theme behind the gold price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040.

Gold News

GBP/USD trades well above 1.31 amid dollar weakness

GBP/USD is advancing towards this month high at 1.3169, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. US Services PMIs are eyed. The ADP NFP missed with 167K.

GBP/USD News

ETH/BTC on retreat, BTC recovery gains traction

ETH/BTC has topped at $0.03528 on Tuesday and retreated to $0.03448 by the time of writing. The cross has lost about 1% since the start of the day. The RSI on a daily chart reversed to the downside, signaling that the price is ready for a correction from overbought territory.

Read more

WTI hits fresh two-week highs near $42.50 ahead of EIA data

WTI (futures on Nymex) extends its winning-streak into the third straight day on Wednesday, as the bulls challenge the July high of $42.51.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures