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.

AUD/USD stays defensive below 0.7150 after Chinese data

AUD/USD remains on the back foot below 0.7150 in the Asian session on Tuesday, close to an over three-week low touched the previous day. US bond yields hold near multi-year highs ahead of the FOMC meeting and oil-driven inflation risks, supporting the US Dollar and weighing on the currency pair. Mixed Chinese activity data for August also fail to inspire the Aussie.

USD/JPY extends gains toward 155.00 amid USD resurgence

USD/JPY keeps pushing higher toward 155.00 early Tuesday, looking for more upside, as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and could limit USD/JPY's upside. .

Gold set to fall toward $4,000 as Warsh faces a Fed rate-hike dilemma

As the Federal Reserve monetary policy announcement approaches and the Middle East war intensifies, the US Dollar resumes its advance. Gold price posted a tepid attempt to recover its shine in early August, but with renewed USD demand, the bright metal faltered miserably and is now closer to the $4,000 mark than the encouraging $4,700 peak from a month ago.

Ripple, Cardano, Hyperliquid – Easing bullish momentum sparks downside risks

Top altcoins, including Ripple (XRP), Cardano (ADA), and Hyperliquid (HYPE), are trading in the red on Tuesday, with roughly 2% losses so far. The altcoins are facing downside pressure ahead of the CLARITY Act cloture vote scheduled for Tuesday.

Markets slide as FOMC approaches

The US Dollar remains strong as markets turn increasingly cautious ahead of the FOMC. Stocks are tumbling, while Gold and Silver are moving lower under pressure from the stronger Dollar. The Japanese Yen is weaker again, while Crypto is correcting. BTC is approaching a key technical test and could fall below its 50-week moving average, while ETH remains above $2,405.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.