The US dollar (USD) bounced back on Wednesday, overcoming earlier losses as investors moved away from risk-related assets, maintaining a positive outlook on US trade policy. This recovery in the greenback occurred even with new predictions for Federal Reserve interest rate cuts later this year due to signs of cooling inflation in April.
Here’s what you need to know on Thursday, May 15th:
The Dollar Index (DXY) reversed its decline from Tuesday, surpassing the 101.00 mark, aided by an increase in US yields across the board. Interesting data ahead includes the NAHB Housing Market Index, weekly unemployment claims, retail sales, producer prices, the Philadelphia Fed manufacturing index, and industrial and manufacturing production metrics. Also, Chief Powell is set to speak before Barr.
The EUR/USD has returned to around 1.1170 after briefly reaching a weekly high exceeding 1.1200. Upcoming data includes the German wholesale price index and a second estimate of eurozone employment changes and GDP growth for the second quarter.
GBP/USD could not sustain its rise to nearly 1.3360 and slipped back to around 1.3250. The UK’s busy agenda includes the initial release of first-quarter GDP growth, followed by statistics on business investment, commodity trade balance, industrial and manufacturing production, construction output, and labor productivity. Additionally, BoE’s Dhingra will provide remarks.
USD/JPY has fallen to about 145.60, marking a three-day low. Next on the agenda are reports on foreign bond investments and machine tool orders.
AUD/USD briefly approached the 0.6500 level but succumbed to selling pressure right away. Australia’s main labor market report is forthcoming, and it will be informed by consumer inflation expectations.
WTI prices have experienced a slight retreat, although they remain near recent highs close to $64.00 per barrel, influenced by rising US crude oil supply.
Gold has been actively traded as a defensive asset, continuing its weakness and dropping to a nearly five-week low of about $3,170 per ounce. Meanwhile, silver prices have retraced to a two-day low near $32.00 per ounce amid ongoing volatility in price movement.
