Forex Today: US, Japan data gathers attention

The US Dollar resumed its downward trajectory on Thursday, weighed by another soft inflation print—this time from Producer Prices—and a mixed batch of US economic data. Meanwhile, doubts continue to build around the durability of the recently announced US–China trade agreement.

Here’s what to watch on Friday, May 16:

Sellers regained control and prompted the US Dollar Index (DXY) to resume its weekly downtrend, this time accompanied by declining US yields across the board. The day’s data slate includes Building Permits, Housing Starts, Import and Export Prices, the preliminary University of Michigan Consumer Sentiment index, and Net TIC Flows. Fed official Thomas Barkin is also scheduled to speak.

EUR/USD ended Thursday’s session barely changing from the previous day’s closing around 1.1180 after failing to sustain the earlier bull run to the 1.12430 zone. Focus now shifts to eurozone Inflation Rate, with the final print due on May 19.

GBP/USD rose strongly and reclaimed the area beyond the 1.3300 hurdle in response to auspicious results from UK fundamentals and the softer Greenback. The Inflation Rate release on May 21 will be the next key data on the UK calendar.

USD/JPY retreated for the third consecutive day, hitting weekly troughs around the 145.50 zone. Next on tap in Japan will be the flash Q1 GDP and Industrial Production. In addition, the BoJ's Nakamura is due to speak.

AUD/USD added to Wednesday’s downtick and flirted with the 0.6400 neighbourhood, where it seems to have met some decent contention. Market participants will look to the Reserve Bank of Australia’s (RBA) policy meeting on May 20 for direction.

WTI crude traded lower and approached the key $60.00 mark per barrel as speculation over a possible breakthrough in US–Iran nuclear negotiations weighed on prices and sentiment in the energy complex.

Gold rebounded to the area above the $3,200 mark per troy ounce, buoyed by the softer US Dollar and rising expectations of Fed easing later in the year. Silver prices followed suit, rebounding to the $32.50 zone per ounce after a brief drop the vicinity of $31.60 per ounce.