Here’s what you need to know for Tuesday, May 13th:
The new trading week has kicked off positively, with the dollar gaining traction after an optimistic outlook stemming from the recent US-China trade discussions over the weekend.
The Dollar Index (DXY) has seen a notable rebound, distancing itself from the significant 102.00 level after the encouraging tone surrounding US-China trade talks. Market attention is now shifting toward the NFIB Business Optimism Index and US inflation rates, further supported by the API’s weekly report on crude oil inventories.
The EUR/USD pair fell sharply, hitting several weekly lows near 1.1060 due to the US dollar’s broad strengthening. Investors are now looking toward the ZEW economic sentiment surveys from Germany and the Eurozone.
GBP/USD has returned to the 1.3140 range, bolstered by a strong resurgence of buyer interest in the dollar. The upcoming BRC retail sales figures and labor market data will be critical across the channel.
USD/JPY continued its upward trend, reaching a new six-week high around the 148.60 level, driven by positive sentiment regarding US-China trade developments. Traders are focused on a forthcoming summary of the Bank of Japan’s opinions.
The AUD/USD pair resumed its downward path as the US dollar maintained its strength, dropping below the 0.6400 support level. Australia’s Westpac Consumer Trust Survey, along with NAB Business Trust, Building Permits, and Private Home Approvals, are all in the spotlight.
WTI crude oil has gained momentum, approaching a three-week high at around $63.00 per barrel, thanks to favorable news linked to US-China trade discussions.
Gold prices remained under pressure, coming close to a monthly level near $3,200 per troy ounce, influenced by a stronger dollar, increased US harvests, and ongoing optimism regarding US-China trade relations. Silver ended the day with modest losses, fluctuating near the $32.00 per ounce mark.
