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.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.