Forex Today: US jobs report, PCE, GDP steal the show amid geopolitical limbo

The Greenback traded in a vacillating fashion on Wednesday, always against the backdrop of the unabated uncertainty surrounding the Middle East conflict, at the time when bets for Fed rate hikes continued to gather pace.

Here is what you need to know on Thursday, May 28:

The USD Index (DXY) kept the trade within familiar levels just above the 99.00 mark on the back of steady scepticism surrounding the crisis in the Middle East. Durable Goods Orders are due next, seconded by the PCE, another revision of Q1 GDP Growth Rate, Personal Income, Personal Spending, Initial Jobless Claims, New Home Sales, and the EIA’s weekly report on crude oil inventories. In addition, the Fed’s Williams is expected to speak.

EUR/USD traded with decent gains, revisiting the 1.1650 region and reaching at the same time multi-day highs. The final EMU Consumer Confidence will be released, followed by Consumer Inflation Expectations and the ECB Monetary Policy Accounts. Additionally, the ECB’s Lane, Lagarde, Cipollone, Schnabel.

GBP/USD alternated gains with losses around 1.3450 following Tuesday’s marked retracement. Yearly Car Production in the UK will be published while the BoE’s Breeden is due to speak.

USD/JPY advanced to monthly peaks, revisiting the mid-159.00s and adding to Tuesday’s uptick. Weekly Foreign Bond Investment figures, Housing Starts and Construction Orders will be released, followed by a speech by the BoJ’s Ueda.

AUD/USD retreated to weekly troughs near 0.7120, adding to Tuesday’s small decline. Australian Private Capital Expenditures will take centre stage alongside Household Spending data.

WTI prices receded to the lowest level in several weeks, breaking below the $88.00 mark per barrel on the back of traders’ hopes for the reopening of the Strait of Hormuz in the short term (good luck with that).

Gold added to previous losses and reached new two-month lows around the $4,400 mark per troy ounce, almost challenging its critical 200-day SMA. The better tone in the Greenback in combination with prospects of a tighter-for-longer Fed kept the yellow metal depressed.