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
AUD/USD rises on mixed US inflation, jobs data ahead of PPI
The Australian Dollar snaps five straight days of losses and climbs over 0.35% as data showed that inflation in the United States was higher than foreseen, but a soft jobs report tempered the Greenback’s advance. The AUD/USD trades around 0.6738 and bounced off a daily low of 0.6699.
EUR/USD falls back as US CPI inflation data prints above expectations
EUR/USD managed to maintain a finger grip on chart paper north of the 1.0900 handle. Fiber wound up closing lower, but recovered just enough to pull back from a deeper test of the 200-day Exponential Moving Average.
Gold price edges up after US CPI data, yet remains below $2,650
Gold prices recovered some ground on Thursday during the North American session, edging up some 0.67% after a hotter-than-expected US inflation report, which was tempered by soft US jobs data. Nonetheless, recent hawkish comments by a Federal Reserve official capped the precious metal’s advance.
Bitcoin risks worst October in six years following high US inflation data and S&P 500 correlation
Bitcoin and the crypto market trended downward on Thursday as the US Consumer Price Index data for September showed that inflation is rising again, reducing the already slim chances of the Federal Reserve cutting its interest rate by another 50 basis points in November.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.