Here is what you need to know on Friday, May 26:
The US Dollar (USD) stays relatively quiet against its rivals early Friday after having registered gains for four straight days this week. The US Bureau of Economic Analysis (BEA) will release the Personal Consumption Expenditures (PCE) Price Index data, the Federal Reserve's preferred gauge of inflation, for April alongside Personal Income and Personal Spending figures. The US economic docket will also feature Durable Goods Orders report and the University of Michigan’s Consumer Sentiment Index (final) for May.
The USD extended its weekly rally on the back of robust macroeconomic data releases during the American trading hours on Thursday and the US Dollar Index touched its highest level since mid-March above 104.00. The BEA announced that it revised the annualized Gross Domestic Product (GDP) growth for the first quarter to 1.3% from 1.1% in the first estimate. Additionally, weekly Initial Jobless Claims for the week ending May 20 came in at 229,000, compared to the market expectation of 245,000.
In the meantime, US House Speaker Kevin McCarthy said on Thursday that they are yet to reach an agreement on debt ceiling but noted that negotiators will continue to work to get a deal done. US stock index futures trade modestly lower on the day and the benchmark 10-year US Treasury bond yield consolidates its weekly gains at around 3.8%.
EUR/USD came within a touching distance of 1.0700 but the risk-positive market atmosphere helped it erase a small portion of its daily losses in the late American session on Thursday. Early Friday, the pair continues to inch higher toward 1.0750.
GBP/USD lost nearly 50 pips on Thursday but managed to hold above 1.2300. In the European morning, GBP/USD clings to small daily gains while trading below 1.2350. The UK's Office for National Statistics (ONS) will release Retail Sales numbers for April.
The data from Australia showed in the Asian session that Retail Sales remained unchanged in April, against the market expectation for a growth of 0.2%. AUD/USD largely ignored this report and stabilized above 0.6500 early Friday after having lost more than 100 pips so far this week.
USD/JPY renewed its highest level since November above 140.00 on Thursday but retreated below that level in the Asian trading hours on Friday. The data from Japan revealed that the Tokyo Consumer Price Index rose 3.2% on a yearly basis in May. This reading came in much lower than analysts' forecast of 3.9% and followed the 3.5% increase recorded in April.
Rising US Treasury bond yields continued to weigh heavily on Gold price on Thursday and XAU/USD dropped below $1,940 for the first time since mid-March. The pair stages a recovery early Friday and trades near $1,950.
Bitcoin registered small gains on Thursday but failed to gather bullish momentum. Early Friday, BTC/USD fluctuates in a tight channel near $26,500. Following Wednesday's sharp decline, Ethereum seems to have stabilized at around $1,800 in the second half of the week.
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.
Recommended content
Editors’ Picks
EUR/USD drops toward 1.0700 after US jobs report
EUR/USD came under renewed bearish pressure in the second half of the day on Friday and declined toward 1.0700. Stronger-than-expected Nonfarm Payrolls (NFP) data helps the US Dollar gather strength ahead of the weekend and forces the pair to stay on the back foot.
GBP/USD extends slide below 1.2450 amid a stronger USD
GBP/USD dropped further and hit fresh daily lows below 1.2450 amid a stronger US dollar. The Greenback remains firm following the release of the US May jobs report. Despite losing almost 100 pips on Friday, GBP/USD is still on track for a weekly gain.
Gold falls below $1,960 as US yields rebound after US jobs data
Gold price turned south and declined below $1,960 on Friday. After the data from the US revealed that Nonfarm Payrolls rose 339,000 in May, the benchmark 10-year US Treasury bond yield gained more than 2% and recovered toward 3.7%, weighing heavily on XAU/USD.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
LULU stock adds 15% on big Wall Street beat
Lululemon Athletica did it again. In something that has become quite predictable, LULU stock sailed 14.9% higher in Friday’s premarket to $377.20 after the prized athleisure brand posted a nearly 15% earnings beat for the first quarter.