The economic calendar is light on Friday. During the Asian session, New Zealand will report on exports and imports, as well as Credit Card Spending. Japan will release inflation data and the Tertiary Industry Index. Later in Europe, the highlight will be German wholesale inflation. The rally of the US dollar is in focus, and the slide in Gold price also deserves attention.
Here is what you need to know on Friday, May 19:
US stocks had another positive day, with the Dow Jones gaining 0.34% and the Nasdaq jumping 1.51%. Optimism about a debt ceiling deal, as well as upbeat economic data, fueled risk appetite. The US dollar rose across the board, even against high-yielding currencies. The US Dollar Index rose 0.65% to settle at 103.50, its highest level in two months. The dollar looks firm. However, most currency pairs show extreme oversold readings.
Economic data from the US came in above expectations, with Jobless Claims and the Philly Fed. Hawkish comments from Federal Reserve officials and hopes of resolving the debt ceiling drama triggered a selloff in Treasury bonds. The US 10-year yield rose to 3.65%, the highest in two months. Investors continue to pare bets of Fed rate cuts by year-end and consider the possibility of another rate hike in June. More Fed talk is scheduled for Friday, including Chair Powell.
EUR/USD dropped towards 1.0750, falling for the fifth time in the last six trading days. On Friday, Germany will report the Producer Price Index for April. The European Central Bank (ECB) will release its Economic Bulletin, and ECB officials Schanbel and Lagarde will speak.
GBP/USD tumbled, testing levels under 1.2500. EUR/GBP finished flat, around 0.8680, holding weekly losses.
The Japanese Yen was the worst performer, affected by rising government bond yields. USD/JPY advanced for the sixth consecutive day, reaching above 138.50, the highest since November. Inflation data from Japan is due on Friday.
The Australian dollar lagged following the Australian employment data. AUD/USD dropped below 0.6640 and is looking at 0.6600.
NZD/USD held above 0.6200 and posted modest losses after presenting the Budget and wholesale inflation figures. Trade data and Credit Card Spending are due in New Zealand.
USD/CAD rose toward 1.3500 and remains in a familiar range. On Friday, March, retail sales will be released in Canada.
Gold suffered heavy losses after breaking the $1,970 support area, falling to $1,950. The yellow metal remains under pressure. Silver also lost ground, extending weekly losses, with XAG/USD settling at $23.50, the weakest close since late March.
Like this article? Help us with some feedback by answering this survey:
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 recovers modestly from 2023-low, trades below 1.0500
EUR/USD dropped to a fresh 2023-low near 1.0450 on Tuesday before staging a modest rebound. After the data from the US showed that the number of job openings rose unexpectedly in August, the US Dollar extended its rally and caused the pair to turn south in the American session.
GBP/USD holds above 1.2050 after US data
GBP/USD fell sharply to the 1.2050 area with the immediate reaction to the US job openings data but managed to its losses. As safe-haven flows continue to dominate the financial markets, however, the pair finds it difficult to gather recovery momentum.
Gold moves closer to $1,800 amid risk-off flows Premium
Gold price stays under modest bearish pressure and trades below $1,830 in the second half of the day on Tuesday. The benchmark 10-year US Treasury bond yield holds at fresh multi-year highs above 4.7% after upbeat US data, not allowing XAU/USD to gain traction.
Chainlink price still trapped in range despite exhausted macro downtrend
Chainlink price eyes the upper boundary of a range at $8.148. It comes after the macro downtrend concluded, and could be the path to a new confirmed macro uptrend for LINK.
S&P 500 Forecast: 4,300 becomes resistance for lagging index
S&P 500 lost 0.74% last week, its fourth consecutive losing streak. Equity index stayed uncertain and closed flat on Monday. Tuesday begins with index shedding ground once more as 4,300 turns into resistance.