Forex Today: US Dollar struggles to gain traction ahead of confidence data, Fedspeak

Eren Sengezer FXStreet

Here is what you need to know on Tuesday, May 28:

The US Dollar (USD) is having a hard time finding demand early Tuesday after weakening modestly against its major rivals on Monday. Housing Price Index for March, Conference Board's Consumer Confidence Index and Dallas Fed Manufacturing Business Index for May will be featured in the US economic calendar later in the day. Several Federal Reserve (Fed) policymakers are scheduled to deliver speeches during the American trading hours.

The USD Index edged lower in the second half of the day on Monday and closed the day in negative territory. Following a three-day holiday, the benchmark 10-year US Treasury bond yield declines slightly early Tuesday and US stock index futures trade marginally higher on the day.

US Dollar PRICE This week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.27%	-0.29%	-0.09%	-0.31%	-0.48%	-0.77%	-0.28%
EUR	0.27%		-0.04%	0.20%	-0.02%	-0.28%	-0.60%	0.04%
GBP	0.29%	0.04%		0.20%	-0.02%	-0.23%	-0.48%	0.03%
JPY	0.09%	-0.20%	-0.20%		-0.26%	-0.42%	-0.61%	-0.22%
CAD	0.31%	0.02%	0.02%	0.26%		-0.19%	-0.46%	-0.03%
AUD	0.48%	0.28%	0.23%	0.42%	0.19%		-0.23%	0.27%
NZD	0.77%	0.60%	0.48%	0.61%	0.46%	0.23%		0.48%
CHF	0.28%	-0.04%	-0.03%	0.22%	0.03%	-0.27%	-0.48%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

The data from Japan showed that the Corporate Service Price Index rose 2.8% on a yearly basis in April, following the 2.4% increase recorded in March. Additionally, Japan's Weighted Median Inflation Index, a key measure of the country’s trend inflation, rose 1.1% in April, slowing from a 1.3% increase in March. USD/JPY showed no reaction to these figures and was last seen moving sideways slightly below 157.00.

Japanese Yen receives pressure after Japan's Weighted Median Inflation shows slowdown.

Following a quiet European session, EUR/USD stretched higher in the American trading hours on Monday and ended the day in positive territory. The pair holds its ground early Tuesday and was last seen trading above 1.0870.

GBP/USD gained 0.25% on Monday and advanced toward 1.2800 early Tuesday, reaching its highest level in two months. The pair stays relatively quiet and fluctuates at around 1.2780 to being the European session.

Gold staged a decisive rebound and rose nearly 1% on Monday. XAU/USD, however, seems to be struggling to preserve its recovery momentum, trading in the red below $2,350 early Tuesday.

Gold price rebounds on weaker US Dollar, investors await US key data.

The Australian Bureau of Statistics reported on Tuesday that Retail Sales rose 0.1% on a monthly basis in April. This reading followed the 0.4% decline recorded in March and came in below the market expectation for an increase of 0.2%. After closing in positive territory on Monday, AUD/USD entered a consolidation phase above 0.6650 on Tuesday.

Australian Dollar rises amid subdued US Dollar ahead of looming US PCE.

Economic Indicator

Consumer Confidence

The Consumer Confidence index, released on a monthly basis by the Conference Board, is a survey gauging sentiment among consumers in the United States, reflecting prevailing business conditions and likely developments for the months ahead. The report details consumer attitudes, buying intentions, vacation plans and consumer expectations for inflation, labor market, stock prices and interest rates. The data shows a picture of whether or not consumers are willing to spend money, a key factor as consumer spending is a major driver of the US economy. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish. Note: Because of restrictions from the Conference Board, FXStreet Economic Calendar does not provide this indicator's figures.

GBP/USD trades near three-month top as fading Fed hike bets undermine USD

The GBP/USD pair attracts some dip-buyers at the start of a new week, and climbs above mid-1.3500s during the Asian session, closer to over a three-month high touched on Friday. Moreover, the prevalent US Dollar selling bias favors bullish traders and suggests that the path of least resistance for spot prices remains to the upside.

EUR/USD strengthens above 1.1550 as Fed rate hike bets fade

The EUR/USD pair gathers strength to around 1.1575 during the early Asian trading hours. The US Dollar edges lower against the Euro amid weaker-than-expected US economic data and shifting central bank expectations. Traders will take more cues from the speech of the European Central Bank President Christine Lagarde on Wednesday.

Gold remains close to June 5 high as receding Fed hike bets undermine USD

Gold builds on Friday's bounce from the $4,300 neighborhood, or a one-week low, and gains some follow-through positive traction at the start of a new week. The commodity, however, struggles to capitalize on the momentum beyond the $4,400 mark and remains below its highest level since June 5, touched on Friday, amid mixed fundamental cues.

Cardano: Whale selling, weak momentum put ADA at risk

Cardano (ADA) nears key support zone, trading at $0.177 after correcting over 10% the previous week. The price decline is supported by whale wallet offloading ADA tokens. Meanwhile, weakening momentum indicators and bearish derivatives metrics suggest a cautious tone among traders and hint at further losses if ADA slips below key support.

US Dollar Weekly Forecast: Economic cracks challenge Fed rate bets

It was a strange week for the US Dollar: while the geopolitical situation has remained largely unchanged, with the usual back-and-forth between the US, Iran, and occasional third parties, disappointing domestic data have re-emerged, reducing expectations of potential tightening by the Federal Reserve in the next few months.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.