Forex Today: Market players start believing US policymakers
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.
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FXStreet Team
FXStreet
