Forex Today: US GDP, employment data and Fedspeak next on tap

Pablo Piovano FXStreet

The US Dollar (USD) maintained its bullish bias unchanged for the second day in a row on Wednesday amid steady optimism on the trade front, while a cautious tone from the FOMC Minutes also collaborated with the daily advance.

Here’s what to watch on Thursday, May 29:

The US Dollar Index (DXY) added to Tuesday’s recovery, retargeting the psychological 100.00 barrier amid mixed developments from US yields across the board. The second estimate of Q1 GDP Growth Rate takes centre stage, seconded by the weely Initial Jobless Claims, Pending Home Sales, and the EIA’s weekly report on US crude oil stockpiles. In addition, the Fed’s Barkin, Goolsbee, and Daly are all due to speak.

The intense rebound in the Greenback put the EUR/USD under extra downside pressure, testing the 1.1300 support. Next of note on the domestic calendar will be Germany’s Retail Sales and the preliminary Inflation Rate, all expected on May 30.

GBP/USD receded to three-day lows, breaking below the 1.3500 contention zone to retest the mid-1.3400s amid the generalised offered stance in the risk-associated space. The next data releases across the Channel will be on June 2, when Mortgage Approvals/Lending are scheduled along with the final S&P Global Manufacturing PMI and Nationwide Housing Prices.

Extra weakness in the Japanese currency lifted USD/JPY to multi-day peaks near the 145.00 hurdle. The weekly Foreign Bond Investment figures will be the only release on the Japanese docket.

AUD/USD built on weekly losses and came close to the key support around the 0.6400 mark, down for the third straight day. The key Private Capital Expenditure reading is due in Oz.

The resumption of supply concerns lent support to crude oil and prompted the barrel of WTI to reverse part of the recent weakness and briefly retest the $62.00 mark on Wednesday. Traders, in the meantime, have largely priced in the OPEC+ decision to hike oil output.

Gold prices alternated gains with losses around the $3,300 region per troy ounce following alleviating concerns on the trade front and steady geopolitical effervescence. Silver prices added to Tuesday’s retracement, challenging once again the $33.00 zone per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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