Forex Today: Market players start believing US policymakers

FXStreet Team FXStreet

What you need to know on Thursday, May 27:

The American dollar edged lower at the beginning of the day but ended it with gains against most of its major rivals. Stocks seesawed between gains and losses while US government bond yields remained subdued, somehow indicating that speculative interest is finally taking note of US Federal Reserve officials’ comments, indicating that they will maintain the current monetary policy, despite rising inflation.

The greenback benefited from some profit-taking and position adjustments in another light macroeconomic day ahead of the US Durable Goods Orders report to be out on Thursday.

The EUR/USD pair peaked at 1.2260 but settled just below the 1.2100 threshold. European Central Bank board member Fabio Panetta said that he does not see signs that inflation is shifting upwards and that it is premature to withdraw stimulus measures.

The pound eased further in against the dollar, but the pair held above 1.4100. China has become the UK’s biggest single import market for the first time since records began, overtaking Germany. Goods imported from China were up 66% from early 2018, according to the Office for National Statistics.

Commodity-linked currencies edged firmly lower against the dollar. Gold retreated from 1,912.70 its highest since last January. The metal trimmed most of its intraday gains ahead of the close, holding above the 1,900 threshold.

Crude oil prices finished the day unchanged, trapped between an improving demand outlook and a sharp decline in US inventories, down by 1.7 million barrels in the week ended May 21.

The focus now shifts to US Durable Goods Orders, to be out this Thursday.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Increased stablecoin supply points to new crypto market rally

Author

FXStreet Team

FXStreet

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.