Forex Today: Cautious Fedspeak, data bolstered the Dollar

Source Fxstreet
May 16, 2024 19:17

The Greenback regained some balance and managed to partially reverse its recent strong sell-off, particularly in the wake of the US CPI. In the meantime, Fed officials sounded cautious regarding inflation and the likelihood of rate cuts later in the year.

Here is what you need to know on Friday, May 17:

The USD Index (DXY) clinched a decent rebound after bottoming out in multi-week lows near 104.00 earlier in the session. On May 17, the CB Leading Index and the speech by FOMC Waller are due.

EUR/USD faced some downside pressure after hitting fresh tops near the 1.0900 region. The final Inflation Rate in the broader Euroland is only due on May 17.

GBP/USD followed its risk-associated peers and returned to the sub-1.2700 region in response to the decent bounce in the US Dollar. On May 17, BoE’s Mann is due to speak.

USD/JPY regained upside traction and recovered part of the ground lost following Wednesday’s sell-off, advancing beyond the 155.00 barrier amidst the Dollar recovery and an uptick in yields.

AUD/USD faded part of the strong weekly advance and came under pressure soon after reaching new peaks north of the 0.6700 hurdle.

WTI prices kept their range bound theme in place for yet another session, always below the $80.00 mark, as traders gauged the recent drop in US inventories and probable interest rate cuts by the Fed.

Prices of Gold corrected lower and receded from the $2,400 region per troy ounce on the back of the mild rebound in the Greenback and higher yields. Silver flirted with yearly highs near the key $30.00 mark per ounce.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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