Forex Today: Focus will be on US PCE, German CPI
The US Dollar (USD) traded on the back foot following quite a volatile day, weighed down by the resurgence of trade uncertainty along with disappointing data releases from the US labour market.
Here's what to watch on Friday, May 30:
The US Dollar Index (DXY) ended Thursday’s session in the area of two-day lows near 99.20, coming all the way down from earlier tops near 100.50. The release of US inflation figures tracked by the PCE will be at the centre of the debate, along with the final prints of the Michigan Consumer Sentiment, the Chicago PMI, Wholesale Inventories, advanced Goods Trade Balance, Personal Spending and Personal Income. In addition, the Fed’s Logan and Bostic are due to speak.
The resumption of the Dollar’s sell-off lent legs to EUR/USD and motivated it to trade close to the 1.1400 barrier. Germany's Retail Sales and the flash Inflation Rate, will be the salient events on the domestic docket.
GBP/USD reversed part of the recent decline and headed toward the key resistance area around 1.3500. In the UK, Mortgage Approvals/Lending, the final S&P Global Manufacturing PMI, and Nationwide Housing Prices will all be published on June 2.
Renewed buying impulse in the Japanese yen sparked a knee-jerk in USD/JPY, receding to the 144.00 zone after climbing as high as the 146.30 region during early trade. The Unemployment Rate, Retail Sales, flash Industrial Production readings, Housing Starts, Construction Orders, and the Tokyo CPI are expected in Japan.
AUD/USD rose in line with the rest of its risk-associated peers, leaving behind three straight days of losses and advancing to the 0.6460 zone. Building Permits, Private House Approvals, Private Sector Credit figures, and Housing Credit will all wrap up the weekly docket in Oz.
Demand concerns weighed on prices of WTI, which once again slipped back to the proximity of the key $60.00 mark per barrel. The EIA unexpectedly reported a weekly drop in US crude oil inventories.
Gold prices advanced markedly, retesting the $3,330 mark per troy ounce on the back of the intense pullback in the Greenback. Silver prices set aside two daily drops in a row, revisiting the $33.50 zone per ounce.