Forex Today: The FX universe takes a breather

The Greenback came under extra selling pressure against the backdrop of marginal volatility in response to the US and UK holidays. Markets are expected to enter some consolidative phase ahead of the release of US PCE and EMU CPI, both due on Friday.

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

The USD Index (DXY) added to Friday’s pullback and revisited the 104.60-104.50 band on Monday. On May 28, the Conference Board’s Consumer Confidence takes centre stage, seconded by the FHFA’s House Price Index. In addition, Fed’s Mester, Kashkari and Cook are due to speak.

Further gains lifted EUR/USD to four-day highs around 1.0870 amidst a renewed selling bias in the US Dollar. Wholesale Prices in Germany are due on May 28 along with the ECB’s Schnabel speech.

GBP/USD accelerated its gains beyond the 1.2700 barrier and hit a new two-month tops following the weaker Greenback. The CBI Distributive Trades are expected on May 28.

Price action around USD/JPY remained flat near the 157.00 hurdle following a solid performance of JGB 10-year yields. There are no scheduled releases in “The Land of the Rising Sun” on May 28.

A solid session saw AUD/USD advance to three-day highs near 0.6660 amidst the softer Dollar and an improved tone in the commodity complex. Flash Retail Sales are next on tap in Oz on May 28.

Prices of WTI rose for the second session in a row, managing to reclaim the area above the $78.00 mark per barrel in response to the selling pressure hurting the greenback.

Gold prices edged higher and surpassed the $2,350 mark per troy ounce, adding to Friday’s small uptick. Silver followed suit and rose markedly more than 4% to surpass the $31.00 mark per ounce.